US stocks gain on bet fresh stimulus is coming

US stocks climbed on optimism that officials will come to terms on fresh economic stimulus, putting a gauge of global stocks on the verge of erasing this year’s losses. The S&P 500 rose by 0.64% to 3,349.16 while Dow Jones was up 185.46 points (0.68%) to 27,386.98.

Drop in US jobless claims offers hope for battered economy

Applications for US unemployment benefits unexpectedly fell last week to the lowest since March, offering a ray of hope for an economy still battered by the pandemic. Initial jobless claims in regular state programs fell by 249,000 to 1.19 million in the week ended Aug. 1, Labor Department data showed. That was the largest improvement in almost two months.

Pelosi cites progress on stimulus with two sides still far apart

House Speaker Nancy Pelosi said negotiations on a new virus relief package are making progress, but the two sides remained at an impasse on major issues with their self-imposed Friday deadline for an agreement looming. With no deal immediately in the offing, President Donald Trump said he is ready to sign orders extending enhanced unemployment benefits for the jobless and imposing a payroll tax holiday for employers and workers.

German factory orders surprise as more workers move off furlough

Germany progressed in its recovery from its record slump, with manufacturing orders rising much stronger than forecast in June and the number of workers on government support programs diminishing. Having shrunk the most in at least half a century in the second quarter as a result of restrictions imposed to control the Covid-19 outbreak, Germany’s economy is now showing signs of bouncing back more quickly than other euro-area countries.

Boris Johnson commits US$466mn to Northern Ireland Brexit red tape

Boris Johnson’s government pledged 355mn pounds (US$466mn) to ensure companies can complete the paperwork needed for trade to Northern Ireland from the rest of the UK after Brexit, just nine months after the prime minister promised there would be no border controls.

Philippines plunges into recession and cuts 2020 GDP outlook

The Philippine economy suffered its deepest contraction on record in the second quarter and revised down its forecast for the year amid one of Asia’s strictest lockdowns against the coronavirus. Gross domestic product shrank 16.5% from a year ago, according to the national statistics agency, the worst reading in a data series going back to 1981.

India’s central bank keeps key rate unchanged on inflation risks

India’s central bank kept interest rates unchanged, while outlining a number of measures to ease stress in the banking sector as the economy heads for its first fullyear contraction in more than four decades. The Monetary Policy Committee voted to keep the benchmark repurchase rate at a record low of 4%, Governor Shaktikanta Das said.

Oil on track for weekly gain after stumbling on demand doubts

Oil headed for its best week since early July, despite stumbling ahead of US jobs numbers that are expected to paint a gloomy picture of the labor market in the world’s biggest economy. Brent crude for October settlement fell US$0.08 to US$45.09 per barrel.

Source: Affin Hwang Research - 7 Aug 2020