Tech stocks lead market declines after big rally

Stocks pared gains on concern that lawmakers will pass a smaller stimulus package after encouraging developments on the coronavirus vaccine front. Treasuries tumbled. The S&P 500 fell by 0.1% to 3,545.53 while Dow Jones was up 262.95 points (0.9%) to 29,420.92.

Fed’s Kaplan says virus surge threatens next two quarters

The US economy is likely to have a strong recovery from the pandemic-induced slump in the second half of the 2021 though the resurgence of Covid-19 jeopardizes the next two quarters, Federal Reserve Bank of Dallas President Robert Kaplan said. “We have a couple of very difficult quarters in front of us,” Kaplan said. Citing business contacts, Kaplan said, “Over the horizon, the future looks bright and we’ll have a strong year next year but we have got to get through the next couple of quarters.”

Fed’s Harker says US economy won’t grow unless workers retrain

American workers will need to upgrade their skills if the US economy is to continue growing and it’s urgent that the government provide incentives for retraining, Federal Reserve Bank of Philadelphia President Patrick Harker said. “The economy will not grow unless we bring people up from the lower-skilled jobs into the middle class,” Harker said. “We really need to focus on retraining those people into different jobs as quickly as we can.”

Investors lose confidence in German economy after virus curbs

Investor confidence in Germany’s economic recovery has been hit by the new business restrictions imposed because of resurgent coronavirus infections. ZEW’s gauge of expectations dropped for a second month in November. The reading of 39.0 is the weakest since April, when the first wave of the pandemic ravaged Europe’s largest economy.

UK unemployment climbs most since 2009 as job cuts soar

UK unemployment rose the most since the financial crisis over the summer. The number of people looking for work surged by 243,000 in the three months through September, taking the jobless rate to 4.8%, the highest in four years, the Office for National Statistics said. Job cuts, known as redundancies in the UK, increased by a record 181,000 in the quarter to over 300,000.

China’s consumer prices head for deflation

China’s consumer inflation threatens to drop below zero in coming months as pork prices reverse trend from last year’s surge. The consumer price index rose 0.5% in October from a year earlier, the slowest pace since late 2009 and the first time it’s been below 1% in more than three years, according to data released by the National Bureau of Statistics.

Korea’s jobless rate unexpectedly rises as virus persists

South Korea’s jobless rate unexpectedly rose in October as the coronavirus kept businesses reluctant to hire. The unemployment rate climbed to 4.2% from 3.9% in September, data from the statistical office showed. The nation shed 421,000 jobs, an eighth straight month of declining employment.

Oil hits two-month high with vaccine hope offsetting demand fear

Oil rose to its highest in more than two months on optimism that a potential coronavirus vaccine will boost demand, offsetting immediate concerns over growing virus lockdowns. Brent crude for January settlement gained US$1.21 to US$43.61 per barrel.

Source: Affin Hwang Research - 11 Nov 2020