GLOBAL NEWS

Stocks Rally Globally With Bank Shares in the Lead

US stocks jumped after four weeks of declines and European shares added the most in three months amid broad gains for equities. The dollar weakened. The S&P 500 rose by 1.61% to 3,351.60 while Dow Jones was up 410.10 points (1.51%) to 27,584.06.

Fed’s Mester Says US Must Do More to Promote Economic Equality

The US economy can’t reach its potential unless the country addresses gaps in economic opportunity, said Federal Reserve Bank of Cleveland President Loretta Mester. “Unfortunately, today, the US economy does not offer the same opportunities to all,” Mester said. Mester said the US can make progress by prioritizing investment at the neighborhood level while increasing access for poorer areas to broad-band Internet services, high-quality education and financial services.

House Democrats Release New US$2.2trn US Stimulus Proposal

House Democrats released a scaled back US$2.2trn proposal to extend support to the US economy in face of the continuing damage from the coronavirus pandemic. The plan follows through on discussions last week to prompt a last-ditch attempt at negotiations with the White House and break an impasse on Covid-19 relief that’s lasted since early August.

US Income Gaps Narrowed Before Covid Hit, Fed Survey Shows

Wealth and income inequality stopped widening in the years before the pandemic struck as earnings rose for most Americans, according to a new Federal Reserve report. Median family income rose 5% in the three years through 2019, to US$58,600, the Fed’s latest Survey of Consumer Finances shows. “These changes are consistent with a slight narrowing of the income distribution over this period,” the Fed said.

Lagarde Says ECB Ready to Act as Pandemic Burdens Economy

The European Central Bank is ready to deploy more monetary stimulus to aid the recovery if needed as the pandemic damps prospects for the economy, according to President Christine Lagarde. Addressing European lawmakers, Lagarde called the recovery across the 19-nation euro zone uncertain and incomplete, with consumers cautious to spend and companies reluctant to invest.

Boris Johnson to Unveil Funding Boost for UK Adult Job Training

Boris Johnson will unveil plans to boost training for adults as his government seeks to tackle rising unemployment and provide the skilled workers businesses say they need. The UK prime minister will announce a package of measures to provide support for ongoing vocational education so employees and people who are out of work can retrain and gain new skills.

Singapore Regulator, Banks in Talks to Extend Debt Relief

Singapore’s central bank is in talks with lenders about extending the nation’s debt moratorium program beyond Dec. 31 to provide extra relief for borrowers hit by the fallout from the coronavirus pandemic, according to people with knowledge of the matter. One of the key measures being discussed by the Monetary Authority of Singapore and local banks is the possibility of lengthening the debt relief program, with industries that have been impacted most by the crisis potentially having aid extended by as many as six months, the people said.

Oil Holds Gains on Stimulus Talk as Demand Concerns Linger

Oil held near a one-week high on optimism for a fresh round of stimulus spending before the US election, as demand concerns kept gains in check. Brent crude for November settlement rose US$0.51 to US$42.43 per barrel.

Source: Affin Hwang Research - 29 Sept 2020