Stocks pare drop on stopgap bill amid aid deadlock

Stocks pared losses as lawmakers passed a stopgap spending bill to avert a federalgovernment shutdown, but gave no signals of an imminent stimulus deal. The S&P 500 fell by 0.13% to 3,663.46 while Dow Jones was up 47.11 points (0.16%) to 30,046.37.

Consumer sentiment in US rises unexpectedly on vaccine news

A gauge of US consumer sentiment unexpectedly increased in early December to the second-highest level since March, amid prospects for a vaccine coming soon to tame the pandemic. The University of Michigan’s preliminary sentiment index rose 4.5 points to 81.4, from a final November reading of 76.9, according to figures that topped all estimates in Bloomberg’s survey of economists. The median projection was 76.

Prices paid to US producers rose at slower pace in November

Prices paid to US producers remained tame in November, indicating limited pricing power as the pandemic continues to weigh on the economy. The producer price index rose 0.1% mom after a 0.3% gain in October, Labor Department figures showed. The PPI climbed 0.8% from November 2019, marking the third year-over-year gain.

Johnson and EU keep Brexit talks alive, raising hopes of a deal

Brexit negotiators will have another shot at reaching a trade deal, even though serious disagreements still remain between the UK and the European Union (EU) and talks are almost out of time. UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed to continue working for a post-Brexit trade agreement during a phone call on Sunday, a sign they think they may be able to salvage an accord after days of pessimism.

EU approves US$2.2trn stimulus plan backed by joint debt

European Union (EU) leaders meeting in Brussels resolved a standoff with two eastern member states that had threatened to delay a historic US$2.2trn budget and stimulus package just as the latest wave of coronavirus infections ravages the continent’s economies. A deal was agreed with Hungary and Poland, which had angrily protested a mechanism tying funding to upholding democratic norms. The agreement paves the way for the EU to put into effect not just its seven-year budget but a 750 billion-euro (US$909bn) pandemic relief package that will be financed by joint debt.

China vows to strengthen fiscal support in key areas like tech

China will strengthen fiscal support in key areas including food, energy, and technology in order to ensure the country’s economic security, the finance minister said. The government should pre-emptively and pro-actively prevent all kinds of risks in the economy, including around the hidden debts of local governments and those associated with high-risk financial institutions, Liu Kun told.

India plans to restart trade pact talks with Biden team

India expects to restart negotiations for a free trade agreement with the US once President-elect Joe Biden’s administration enters, Foreign Minister Subrahmanyam Jaishankar said. “I certainly hope that we have very serious discussions when the administration comes in,” Jaishankar said. “India is very focused on it” and a deal is on the trade ministry’s agenda, he said.

Oil ekes out weekly gain after retreating from nine-month high

Oil just managed a weekly gain as an impasse in Washington over pandemic relief dimmed chances of an imminent boost to demand. Brent crude for February settlement fell US$0.28 to US$49.97 per barrel.

Source: Affin Hwang Research - 14 Dec 2020