Stocks rally to record as small caps outpace tech

Stocks climbed to a record as the rotation to economically-sensitive industries regained momentum even with a surge in coronavirus cases that could lead to more restrictions and crimp growth. The S&P 500 rose by 1.36% to 3,585.15 while Dow Jones was up 399.64 points (1.37%) to 29,479.81.

Bullard says market ought to relax over Fed loan programs ending

Financial markets should not fret if the Federal Reserve’s emergency lending facilities are not extended at the end of this year, when all but one are due to expire, St. Louis Fed chief James Bullard said. “Whether we extend them or not may not be that material to financial markets because we can always start up the liquidity programs again in the future,” said Bullard.

US likely to show snapshot of resilience in retail

The US probably began the final quarter with a steady performance by retailers, factories and homebuilders, a snapshot of resilience as the world’s largest economy plods forward against coronavirus headwinds. Store receipts for October are seen increasing 0.5% after a larger-than-forecast 1.9% jump a month earlier. The projected gain indicates a tempering, yet still solid rate, of spending. The value of retail sales remains well above pre-pandemic levels.

ECB’s Muller says ultra-cheap loans are key for next stimulus

The European Central Bank should put ultra-cheap loans at the core of its next stimulus package being prepared for December, Governing Council member Madis Muller said. The Estonian central bank chief emphasized the need for a renewed so-called TLTRO push rather than additional bond buying via the Pandemic Emergency Purchase Program, saying the situation isn’t like it was in March when the ECB was fighting market dislocation.

UK hints Brexit talks could be extended as disagreements remain

The UK hinted that Brexit talks could stretch out beyond this week as the two sides struggle to overcome the key barriers to reaching a trade deal. While officials from both sides of the Brexit divide agree the coming week is crucial, negotiations over a trade agreement have already passed a number of informal deadlines.

Asia Pacific nations sign biggest regional trade deal

Asia Pacific nations including China, Japan and South Korea signed the world’s largest regional free-trade agreement, encompassing nearly a third of the world’s population and gross domestic product. Top officials from 15 nations that also include Australia, New Zealand and the 10 members of the Association of Southeast Asian Nations inked the Regional Comprehensive Economic Partnership, or RCEP.

Hong Kong sees GDP contraction near low end of forecast band

Hong Kong’s economy will probably contract 6.1% this year, close to the lower end of the government’s forecast range, amid signs the city is starting to emerge from a deep recession spurred by political protests and then the coronavirus outbreak. The government’s latest projection, compares with August’s forecast range of -6% to -8%. It also revised data for the third quarter, showing gross domestic product declined 3.5% from a year ago, slightly worse than an earlier estimate of -3.4%.

Oil pares weekly gain as viral surge overshadows vaccine promise

Oil declined for a second session as rising Covid-19 cases threatened to derail demand with tougher restrictions in major U.S. cities on the horizon. Brent crude for January settlement lost US$0.75 to US$42.78 per barrel.

Source: Affin Hwang Research - 16 Nov 2020