Stocks Jump as Nasdaq Notches Best Day Since April

US stocks climbed to an almost six-week high amid a rally in some of the world’s largest technology companies. The S&P 500 rose by 1.64% to 3,534.22 while Dow Jones was up 250.62 points (0.88%) to 28,837.52.

Stimulus Talks Remain Deadlocked as House Told No Votes Expected

Prospects for a quick end to the stalemate over a new stimulus faded with members of the House being told not to expect any action this week and many Senate Republicans rejecting the White House proposal for a deal. President Donald Trump, well behind Democrat Joe Biden in every recent poll, again attempted to prod negotiations by urging the GOP by tweet to cut short confirmation hearings for his Supreme Court nominee, Judge Amy Coney Barrett, and focus on bolstering the economy.

Fed in Holding Pattern While Washington Battles Over Stimulus

US central bankers are reluctant to fire the next bullet in their policy arsenal, despite uncertain progress in Washington on more fiscal stimulus that they say is vital to support the economic recovery. Around 20 speeches and interviews with Fed officials last week, plus minutes of their meeting in mid-September, paint a picture of policy makers ready to consider doing more at some stage -- but in wait-and-see mode while Republicans and Democrats joust ahead of the Nov. 3 vote.

Bailey Says BOE Isn’t Ready to Implement Negative Interest Rates

The Bank of England is not yet ready to implement negative interest rates, Governor Andrew Bailey said. The central bank earlier announced that it is seeking information from UK financial institutions on their ability to implement sub-zero rates without damaging their business. That is an operational question and policy makers are not currently addressing whether to introduce them, Bailey said.

ECB Pushes Governments to Keep Up Fiscal Support for Economy

European Central Bank top officials amplified their call on governments to keep supporting euro-area economies as they recover from the coronavirus slump, warning against prematurely removing aid. President Christine Lagarde said her biggest concern right now is that measures such as debt moratoria, state guarantees and furlough schemes are phased out too abruptly.

India Unveils US$6.6bn Plan to Boost Consumer Demand

India announced measures worth US$6.6bn to stimulate consumer demand and investment in the economy damaged by the coronavirus pandemic. As much as 116bn rupees (US$1.6bn) would be paid as allowances and advances to federal government employees with the condition they spend on non-essential goods before March 31, Finance Minister Nirmala Sitharaman told reporters.

Singapore Faces Deep ‘scarring’ From Virus, MAS’s Menon Says

Singapore’s central bank chief said as much as 20% of the city-state’s economy faces “deep scarring” from the coronavirus pandemic. Aviation and tourism industries are a worry, especially with an expected slow recovery in travel, Ravi Menon, managing director of the Monetary Authority of Singapore, said at a virtual event hosted by the Institute of International Finance. About 10% to 20% of the economy faces scarring from the virus, he said.

Oil Plunges Most in a Week With Supply Disruptions Subsiding

Oil dropped the most in more than a week with Gulf of Mexico production starting to resume and Libya reopening its biggest field. Brent crude for December settlement declined by US$1.3 to US$41.72 per barrel.

Source: Affin Hwang Research - 13 Oct 2020