Stocks climb to record amid stimulus discussions

Stocks rose to a record as stimulus talks tempered concern about tougher restrictions amid a surge in coronavirus cases. The S&P 500 rose by 0.28% to 3,702.25 while Dow Jones was up 104.09 points (0.35%) to 30,173.88.

Mnuchin pitches new US$916 billion stimulus package to Pelosi

Treasury Secretary Steven Mnuchin said he presented a new US$916 billion Covid-19 relief proposal to House Speaker Nancy Pelosi, in the first move by the Trump administration since Election Day to break a months-long standoff. Mnuchin said in a tweeted statement that he had conferred with Republican congressional leaders on the plan, as well as President Donald Trump.

Macron and Merkel agree to keep Brexit off EU summit’s agenda

Angela Merkel and Emmanuel Macron have agreed that Brexit negotiations should be kept off the agenda of this week’s summit of European Union leaders, a sign the bloc will resist making any significant last-minute concessions to the UK and will stick with Michel Barnier’s mandate. The decision was taken during a call between Germany’s chancellor, France’s president, and the presidents of the European Commission and Council, Ursula von der Leyen and Charles Michel, according to two officials.

UK online sales jump as Britons stock up early for Christmas

UK shoppers splashed out online last month as a new lockdown to contain Covid came into force. Web grocery sales shot up 97.4% in November from a year earlier. Overall consumer spending fell 1.9%, led by a drop in sales of fuel and non-essential items. Excitement around new consoles and video game releases, as well as extended Black Friday discounts, contributed to the surge in online sales.

Investor hopes for German economy rebound after vaccine progress

Investor confidence in the outlook for Germany improved, on hopes that the roll-out of Covid-19 vaccines will boost the recovery in Europe’s largest economy. ZEW’s gauge of expectations for the next six months rose to 55.0 in December from 39 a month earlier. That’s still well below levels recorded in September, before the region was hit by a second wave of infections.

Japan’s Suga doubles down on travel bet in US$700 billion package

Japanese Prime Minister Yoshihide Suga doubled down on his bet that promoting domestic travel will ensure the economy stays on a recovery path and that his tenure as premier will continue beyond a single year. Despite a resurgence in Covid-19 infections that some observers have blamed on Suga’s Go-To-Travel campaign, the government unveiled a six-month extension of the measure as part of an economic stimulus package with an overall value of more than US$700 billion.

Thailand approves US$748 million plan to boost consumer spending

Thailand’s cabinet approved a new phase of fiscal stimulus program to boost consumer spending worth 22.5 billion baht (US$748 million), according to government spokesman Anucha Burapachaisri. The program will allow 15 million people to spend money on consumer goods and services, with the government covering 50% of the bill, and is expected to add about 45 billion baht to the economy in the first quarter of next year, Anucha said.

Oil stalls with market awaiting stimulus, vaccine developments

Oil was little changed with the market weighing near-term demand risks from rising virus cases against hopes for more stimulus and a vaccine rollout. Brent crude for February settlement gained US$0.05 to US$48.84 per barrel.

Source: Affin Hwang Research - 9 Dec 2020