GLOBAL NEWS

Stocks Hit Highest Since February on Tech Rally

US stocks advanced to the highest since February, with the stay-at-home trade thriving even as investors received encouraging news on a potential virus vaccine. The dollar weakened to an almost six-week low. The S&P 500 rose 0.84% to 3,251.84 while Dow Jones was down 8.92 points (0.033%) to 26,680.87.

Mnuchin Says Next Stimulus Bill Focuses on Jobs, Opening Schools

US Treasury Secretary Steven Mnuchin said the next round of virus relief will center on measures to get children returned to schools and workers back into jobs, as well as developing a vaccine to blunt the pandemic. Along with money still untapped from earlier rounds of stimulus, Republicans are “starting with another trillion dollars. We think that will make a big impact,” he said.

EU Edges Toward Massive Stimulus Package With New Proposal

European Union leaders were given a new compromise proposal for a 750bn-euro ($858bn) recovery fund to help the bloc overcome the economic fallout from the coronavirus pandemic. European Council President Charles Michel distributed the latest plan, which would include 390bn euros of grants, down from an initial 500bn euros, and 360bn euros of low-interest loans.

UK Recovery Still Looks V-shaped, BOE’s Haldane Says

The UK’s recovery is still looking V-shaped and the economy has clawed back about half the output it lost in March and April, Bank of England chief economist Andy Haldane said. This plainly has been a recovery and a pretty sharp one, he told lawmakers on Parliament’s Treasury Committee. As has been the case of course globally -- in that sense we have seen a bounce-back, so far it has been a V. That does of course not tell us where we might go next.

Japan’s Export Slump Drags on Even as Markets Reopen

Japanese exports fell by more than 20% for a third straight month even as key markets started to reopen from virus shutdowns. The value of Japan’s overall shipments overseas slid 26.2% in June from a year earlier, led by steep declines in exports of cars and auto parts, the finance ministry reported. Although exports continued to be down sharply compared with the previous year, there were signs declines may have bottomed.

Indonesia Forms Panel to Revive Virus-hit Economy as Cases Jump

Indonesian President Joko Widodo will chair a new task force to lead efforts to contain the biggest outbreak of coronavirus in Southeast Asia and monitor spending of $47bn in fiscal stimulus to revive the nation’s economy. The panel will integrate various existing programs to mitigate the pandemic and ensure good governance in allocating 695.2trn rupiah ($47bn) of recovery funds, the State-Owned Enterprises Ministry said.

Hong Kong Jobless Rate Jumps to Highest in Over 15 Years

Hong Kong’s unemployment rate rose in June to the highest in more than 15 years, as the city’s economy remains under pressure from the coronavirus pandemic as well as escalating U.S.-China tensions.The jobless rate rose to 6.2% for the April to June period. The latest reading is the highest since January 2005. The increase marks nine straight months of worsening unemployment.

Oil Erodes Gains as Virus Concerns Keep Bulls in Check

Oil drifted lower in Asia as the continued rise in coronavirus cases across the globe continued to overshadow the prospects for a demand recovery. Brent crude for September settlement added US$0.14 to US$43.28 per barrel

Source: Affin Hwang Research - 21 Jul 2020