Tech Shares Gain After Chipmaker M&A; Oil Climbs

Tech shares rose after Advanced Micro Devices Inc. announced a US$35bn takeover of another chipmaker, helping to blunt concern about the impact of growing coronavirus infections. Oil climbed. The S&P 500 fell by 0.3% to 3,390.68 while Dow Jones was down 222.19 points (0.80%) to 27,463.19.

US Consumer Confidence Eased in October as Economy Views Dim

Consumer confidence unexpectedly pulled back in October as Americans became more concerned about prospects for employment, incomes and the economy. The Conference Board’s index decreased to 100.9 from a downwardly revised 101.3 reading in September. The gauge of expectations slipped 4.5 points to 98.4, while a measure of sentiment about current conditions rose to a seven-month high of 104.6.

US Durable Goods Orders Rose More Than Forecast in September

US durable goods orders rose in September by more than forecast, indicating manufacturers continue to benefit from steady demand and lean inventories. Bookings for durable goods -- or items meant to last at least three years -- increased 1.9% from the prior month following a revised 0.4% rise in August, Commerce Department data showed. The median estimate in Bloomberg’s survey of economists called for a 0.5% gain in September.

UK Recovery Shows Signs of Waning as Retail Sales Decline

Retail sales fell at the fastest pace since June this month, a fresh sign that the UK’s fragile economic recovery is faltering. Demand at department stores and clothing outlets slumped, while grocery sales flatlined for the first time since the height of the national lockdown, according the Confederation of British Industry. A bleak outlook among retailers saw them cut orders with suppliers for an 18th month, even as they prepare for the traditionally busy Christmas shopping period.

Korea Consumer Confidence Jumps Most Since 2009 as Virus Eases

South Korea’s consumer confidence jumped the most since the global financial crisis in another upbeat sign for the economy as it rebounds from a pandemic-driven recession. The consumer sentiment index rose by 12.2 points in October to reach 91.6, the highest since February, the Bank of Korea said. The monthly increase was the biggest since April 2009. The increased confidence coincides with stronger-thanexpected economic growth last quarter led by exports and investment.

Australia’s Still-deferred Loans Among Riskiest, Bullock Says

Australia’s remaining deferred mortgages tend to have higher loan-to-valuation ratios or are held by people in industries struggling from the pandemic, a senior Reserve Bank official said. “Non-performing loans to households, which had already risen over the past couple of years, are therefore expected to continue to rise over the coming months,” RBA Assistant Governor Michele Bullock said.

Indian Economy Accelerates in September

India’s economy picked up speed in September as a revival in demand and business activity helped drive the South Asian nation toward recovery from the pandemicinduced slump. Five of the eight high-frequency indicators, including exports, tracked by Bloomberg News improved last month, while three were steady.

Oil Pares Gains on Expectations of Rising US Crude Supplies

Oil pared gains as expectations for a build in US crude and gasoline inventories offset supply disruptions from Tropical Storm Zeta. Brent crude for December settlement rose by US$0.74 to US$41.20 per barrel.

Source: Affin Hwang Research - 28 Oct 2020