S&P 500 Rebounds to Post Biggest Gain in Two Weeks

US stocks bounced back a day after their biggest rout in four months, with investors encouraged by better-than-forecast economic data even as they kept a wary eye on growing coronavirus infections. The S&P 500 rose by 1.19% to 3,310.11 while Dow Jones was up 139.16 points (0.52%) to 26,659.11.

US Jobless Claims Declined More Than Forecast Last Week

Applications for US state unemployment benefits fell more than forecast last week, suggesting the labor market remains on the path of gradual improvement -- while still far from its pre-pandemic health. Initial jobless claims in regular state programs totaled 751,000 in the week ended Oct. 24, down 40,000 from the prior week, Labor Department data showed.

Trudeau Poised to Unveil US$15bn in New Permanent Spending

Prime Minister Justin Trudeau’s government is considering as much as C$20bn (US$15bn) in annual permanent spending for new programs that may be revealed as early as next month, according to a senior government official. Finance Minister Freeland’s fiscal statement could include details on government funding plans for child care, prescription drugs and other long-term priorities that will be structural in nature.

Lagarde Primes ECB for More Economic Stimulus

European Central Bank President Christine Lagarde said there is “little doubt” that policy makers will agree on a new package of monetary stimulus in December as coronavirus infections and renewed lockdowns threaten a double-dip recession. “The euro-area economic recovery is losing momentum more rapidly than expected,” Lagarde said.

BOJ’s Kuroda Says Will Act If Needed Amid High Virus Uncertainty

Bank of Japan Governor Haruhiko Kuroda said he stands ready to act if needed amid heightened uncertainty over a resurgence in the pandemic though he still doesn’t see a pressing need to extend or change existing virus-response measures. Speaking after keeping policy on hold and cutting a growth forecast for the current fiscal year, Kuroda said the BOJ’s measures had helped an economy that is digging itself out of a severe predicament.

Thailand Sees 2020 GDP Drop 7.7%, Better Than Prior Forecast

Thailand’s economy will shrink this year by less than previously estimated as government support measures alleviate the impact of the coronavirus pandemic, according to the finance ministry. The Southeast Asian nation, which has seen trade and tourism battered by the pandemic, will contract 7.7% in 2020, Pornchai Thiraveja, a financial policy adviser and the ministry’s deputy spokesman said.

Hong Kong Economy Shows First Signs of Revival Since Protests Began

Hong Kong’s economy is showing the first signs of emerging from a crippling recession sparked by political unrest last year and deepened by the global pandemic. After more than a year of weakness in multiple economic indicators, data this week showed exports from the Asian financial hub surged the most in almost two years in September, fueled by a 17% increase in shipments to mainland China.

Oil at Lowest in Months as New Virus Cases Hurt Recovery Hopes

Oil futures fell to multi-month lows as record growth in coronavirus cases in the US and Europe raised the specter of more demand destruction from tighter lockdown measures. Brent crude for December settlement lost by US$1.47 to US$37.65 per barrel

Source: Affin Hwang Research - 30 Oct 2020