US Stocks Post Biggest Weekly Gains Since April

US stocks registered the biggest weekly increase since April with the labor market strengthening and Joe Biden on the verge of wining the presidential election. The S&P 500 fell by 0.03% to 3,509.44 while Dow Jones was down 66.78 points (0.24%) to 28,323.40.

Joe Biden Wins US Presidency After Bitter Contest With Trump

Joseph Robinette Biden Jr. has defeated Donald Trump to become the 46th US president, unseating the incumbent with a pledge to unify and mend a nation reeling from a worsening pandemic, faltering economy and deep political divisions. Biden’s victory came after the Associated Press, CNN and NBC showed him winning Pennsylvania and Nevada and gaining more than the 270 Electoral College votes needed to secure the presidency.

US Labor Market Extends Gains, Jobless Rate Declines to 6.9%

The US labor market strengthened in October, defying expectations for more subdued gains amid an intensifying pandemic and lack of additional fiscal relief. Nonfarm payrolls increased by 638,000 after an upwardly revised 672,000 gain the prior month, according to a Labor Department report.The unemployment rate fell by 1 pp to 6.9%.

Brexit Talks Continue But Johnson and EU Warn of Big Differences

UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen used a phone call to plot the way forward toward a Brexit deal, but said that large differences still need to be bridged if there is to be an agreement. The prime minister and the European Union’s chief official will now allow their negotiators --David Frost for the UK and Michel Barnier for the EU -- to resume trade talks in London, in what a UK spokesman described as a redoubling of efforts.

German Industrial Production Rose for Fifth Month in September

German industrial production rose for a fifth month in September, highlighting how the economy was recovering before the imposition of new virus restrictions. Output increased 1.6%, with gains across all sectors but energy. Rising factory orders reported a day earlier suggest industry could sustain its growth in the months ahead -- contrary to services providers, which have have been far worse hit by a partial lockdown.

China Starts Talking Stimulus Exit Again as Economy Recovers

China’s central bank once again raised the topic of exiting its monetary easing policies, in sharp contrast to the US and Europe, where a resurgence in virus cases has forced governments there to consider more stimulus. Policy makers globally are discussing the timing of stimulus withdrawal, and the consensus is that it should be done sooner rather than later, Liu Guoqiang, vice governor of the People’s Bank of China, said.

Singapore’s Economic Rebound Unlikely to be ‘vibrant,’ PM Lee Says

Singapore’s economy is unlikely to pick up in a “very vibrant sort of way very soon” as key export markets in Europe and the US face renewed coronavirus outbreaks, Prime Minister Lee Hsien Loong said. While many sectors have shown improvement since lockdown measures were relaxed, some such as aviation, transport and tourism are likely to remain in “suspended animation” for some time because of second waves in other parts of the world, Lee said.

Oil Pares Weekly Gain on Virus Surge, Election Uncertainty

Oil pared its weekly gain as a resurgent pandemic raised the risk of further demand destruction, while the market awaits the outcome of a tightly contested US election. Brent crude for January settlement loss by US$1.48 to US$39.45 per barre

Source: Affin Hwang Research - 9 Nov 2020