**US stock closed due to Thanksgiving Day**

US consumer spending rose in October while incomes declined

US household spending rose more than expected in October while incomes declined, indicating consumers may have less wherewithal to keep driving the economy amid a surging coronavirus and lack of fresh government aid. Purchases increased 0.5% from the prior month, following a 1.2% gain in September, a Commerce Department report showed. That compared with estimates for a 0.4% increase.

US recovery more tenuous as jobless claims rise, incomes fall

Applications for US state unemployment benefits unexpectedly posted the first backto-back weekly increase since July, while Americans’ incomes and savings fell last month. Data indicate the economic rebound is becoming more tenuous amid soaring coronavirus cases, fresh lockdowns and an extended deadlock in Congress over a new stimulus package. Initial jobless claims in regular state programs increased by 30,000 to 778,000 in the week ended Nov. 21, according to Labor Department data.

US-EU ‘mini’ tariff-cutting deal clears final hurdle in Europe

The European Union removed tariffs on US lobster, making good on a pledge meant to improve transatlantic trade ties strained by the “America First” agenda of outgoing President Donald Trump. The European Parliament voted in Brussels to scrap the import duties, which range from 6% to 16% depending on the type of lobster. In return, the US is cutting by 50% its levies on a handful of EU goods including crystal glassware (excluding drinking glasses), cigarette lighters, prepared meals and propellant powders.

ECB’s Lane sounds alarm on worrying financing conditions

The euro-area economy is seeing initial signs of strained financing conditions, European Central Bank chief economist Philip Lane said. “There are some worrying signals in recent survey data,” he said, citing indicators on lending, investment, and access to finance for small- and medium-sized businesses. We will recalibrate our instruments, as appropriate, to respond to the unfolding situation and to ensure that financing conditions remain favorable to support the economic recovery.

Riksbank expands QE; says more steps possible between meetings

Sweden’s central bank surprised markets with a bigger-than-expected expansion of its asset purchase program, and said there’s room to deliver more stimulus between scheduled meetings. “If the world changes, if there’s turbulence for various reasons and if we conclude that we need to do something between meetings, we will do so,” Governor Stefan Ingves said.

Bank of Korea’s Lee warns won bulls after upping growth view

Bank of Korea Governor Lee Ju-yeol said the economy will likely shrink less than expected this year despite the worsening pandemic, though he issued a warning over rapid won gains that could undermine the pace of recovery. “The negative impact from the resurgence of the virus is still big, but exports will likely outweigh that,” Lee said at a briefing after the central bank board held the seven-day repurchase rate at 0.5% and upgraded its growth forecasts.

Oil slips from eight-month high with OPEC+ tension rising

Oil fell from an eight-month high as cracks appear among some OPEC+ members days before a key policy meeting to discuss delaying the end of output curbs. Brent crude for January settlement gained US$0.81 to US$47.80 per barrel.

Source: Affin Hwang Research - 27 Nov 2020