Stocks rise to 10-week high with rally in big tech

Stocks climbed as giant tech companies rallied in a shift back to the safety trade that has powered this year’s gains amid speculation the economic recovery will be slow with a virus resurgence. The S&P 500 rose by 0.77% to 3,572.66 while Dow Jones was down 23.29 points (0.08%) to 29,397.63.

Biden brushes off Trump’s long-shot bid to undercut election

President-elect Joe Biden shrugged off Donald Trump’s effort to challenge the election results, forging ahead with transition planning even as the president pursues a multistate legal fight backed by Republican allies and the Justice Department. Biden called Trump’s approach an embarrassment, and his lawyers said the legal challenges would fail and the Democrat will inevitably be sworn in as president on Jan. 20.

Lagarde says next stimulus to rely on emergency QE, loans

European Central Bank President Christine Lagarde said policy makers will focus on emergency bond purchases and long-term loans for their next wave of stimulus, effectively ruling out interest-rate cuts as a way to aid the economy. “While all options are on the table, the pandemic emergency purchase program and targeted longer-term refinancing operations have proven their effectiveness,” she said.

Brexit talks set to miss deadline and continue next week

Trade talks between the UK and European Union are set to be extended beyond this weekend’s informal deadline and continue in Brussels next week, according to two people familiar with the matter. Negotiators have been working round the clock in London since Monday, with both sides pinpointing the end of this week as the last moment they could strike a deal while still allowing enough time for parliamentary ratification before the UK leaves the bloc’s single market on Dec. 31.

ECB must act to fend off deflation, Bank of Spain official says

The European Central Bank must introduce additional monetary policy stimulus in December to stave off the risk of deflation in the euro zone, the Bank of Spain’s chief economist said. “We know that in order to ensure such a risk doesn’t materialize, we must act swiftly and forcefully,” Oscar Arce, the Spanish central bank’s director general of economics, said.

Philippine central bank says there’s room to cut reserve ratio

Low inflation in the Philippines gives the central bank room to cut reserve requirement ratios, even though there’s already sufficient money supply in the financial system, according to the Bangko Sentral ng Pilipinas. The benign inflation environment gives it “some room for further reductions in RRRs if necessary, even as recent indicators of financial market activity continue to indicate that market liquidity remains adequate,” the central bank said.

Thailand asks central bank to manage currency to aid exports

Thailand’s government wants the central bank to temper a rally in the nation’s currency, which is threatening efforts to boost exports to balance a slump in tourism revenue, according to Finance Minister Arkhom Termpittayapaisith. Bank of Thailand is “taking care” of the baht, Arkhom told reporters, after the currency rallied to a 10-month high against the U.S. dollar

Oil pares gains with grim virus numbers countering vaccine rally

Oil edged higher but pared earlier gains as the risk of renewed lockdowns crimping demand in the near-term restrained a vaccine-driven rally. Brent crude for January settlement gained US$0.19 to US$43.80 per barrel.

Source: Affin Hwang Research - 12 Nov 2020