Stocks drop amid virus surge; pound trims decline

Stocks fell as coronavirus infections swept across US states, triggering fears of more restrictions. The pound pared losses as the UK agreed on further talks with the European Commission to address the impasse over a trade deal. The S&P 500 fell by 0.19% to 3,691.96 while Dow Jones was down 148.47 points (0.49%) to 30,069.79.

US expected to make dairy-trade complaint against Canada

US Trade Representative Robert Lighthizer is expected to unveil an enforcement action against Canada over its rules for US dairy imports, according to a government official. The official said the US had informed Canada of its decision to file the enforcement action. Canada maintains that it is fully within its rights to apply tariff-rate quotas, or TRQs, which follow the rules laid out in the trade deal between the US, Canada and Mexico that went into effect in July.

US consumer credit growth slows as credit card balances shrink

US consumer borrowing rose in October by less than forecast, reflecting a decline in credit-card balances as the pandemic continued to limit some purchases. Total credit increased US$7.2bn from the prior month after a downwardly revised US$15bn September gain, Federal Reserve figures showed. Revolving credit declined for the seventh time in the past eight months.

UK house prices climb most in over four years, Halifax says

UK house prices surged the most since 2016 last month as realtors remained open for business while much of the rest of the economy entered a second coronavirus lockdown. Home prices rose 7.6% in November from a year earlier, mortgage lender Halifax said. On the month alone, prices gained 1.2%.

Bank of Korea under pressure to broaden mandate with jobs goal

The Bank of Korea is facing mounting pressure to broaden its mandate for the first time in nearly a decade as global central banks are asked to tackle a wider range of economic issues highlighted by the pandemic. More than a dozen South Korean lawmakers are pushing for the passage of a bill to add employment stability to the BOK’s mandate.

China foreign reserves at highest since 2016 as trade booms

China’s foreign exchange reserves rose by more than US$50bn in November to the highest since August 2016, likely boosted by the weaker dollar and a trade surplus at record highs. Reserves gained for the first time in three months, reaching US$3.1785 trn at the end of November, the People’s Bank of China said. The value of gold assets declined to US$110.4bn.

World Economic Forum to hold 2021 gathering in Singapore

The World Economic Forum will hold its 2021 annual meeting in Singapore instead of its traditional home of Switzerland, which is battling a high number of coronavirus infections. The annual meeting will be held in Singapore May 13 to 16 and return to Davos-Klosters, Switzerland in 2022, the World Economic Forum said. The meeting will also include a virtual component to allow greater participation, according to Singapore’s Ministry of Industry and Trade.

Oil falls with broader market selloff as virus weighs on demand

Oil snapped a three-day streak of gains alongside a broader market selloff as nearterm demand risks from a resurgent pandemic clouded optimism surrounding a future vaccine rollout. Brent crude for February settlement lost US$0.46 to US$48.79 per barrel.

Source: Affin Hwang Research - 8 Dec 2020