US stocks climb, bonds fall on stimulus bets

US stocks halted a four-day losing streak as Congress moved toward a federal spending package that would boost the economy. Treasuries retreated. The S&P 500 rose by 1.29% to 3,694.62 while Dow Jones was up 337.76 points (1.13%) to 30,199.31.

US factory output rises more than forecast on auto production

US manufacturing output rose by more than forecast in November thanks to a boost in auto production, helping factories continue to rebound toward their pre-pandemic capacity and strength. Output at factories increased 0.8% from the prior month after an upwardly revised 1.1% gain in October, according to Federal Reserve data. Total industrial production, which also includes mining and utility output, advanced 0.4% in November after a 0.9% increase a month earlier.

New York Fed factory gauge falls to four-month low in December

Manufacturing in New York State expanded in December at the slowest pace in four months as new orders cooled, though expectations for future conditions picked up in a sign of optimism that vaccines bring the pandemic’s end in sight. The Federal Reserve Bank of New York’s general business conditions index decreased to 4.9 from 6.3 a month earlier, according to a report.

UK job cuts hit a record high as Sunak delayed aid extension

UK job cuts jumped to the highest on record in the three months through October, raising more questions over Chancellor of the Exchequer Rishi Sunak’s refusal to extend job support programs until hours before they expired. Redundancies increased by a record 217,000 in the period, the Office for National Statistics said. The number of people on payrolls was 819,000 below pre-pandemic levels in November, with over a third of the fall coming from the hospitality sector

Swiss economic recovery delayed by second virus wave
The Swiss economy will shrink this quarter and recover less quickly than previously expected in 2021 as renewed restrictions to stem the spread of Covid-19 in Europe and elsewhere weigh on global momentum. Switzerland’s State Secretariat for Economic Affairs sees gross domestic product expanding 3.2% next year, slower than the 4.2% previously forecast.

Singapore home sales rise amid positive economic outlook

Singapore home sales rose in November, following demand from locals betting that prices could rebound next year as the economy recovers from the pandemic. Purchases of new private apartments rose 18% last month to 767, from 645 in October, according to Urban Redevelopment Authority data released Tuesday.

China heads for strong growth in 2021 as recovery gathers pace

China pulled further ahead of other major economies in November as industrial output and retail sales strengthened, reinforcing expectations of healthy growth in 2021. Industrial production rose 7% yoy in November, while retail sales expanded 5% in the period. Fixed-asset investment grew 2.6% in the first 11 months of the year from the same period in 2019.

Oil jumps to highest since February amid stimulus optimism

Oil surged to the highest in nearly 10 months in New York alongside a broader market rally as breakthroughs on US stimulus talks combined with the Covid-19 vaccine rollout stoked optimism around a demand revival.. Brent crude for February settlement gained US$0.47 to US$50.76 per barrel.

Source: Affin Hwang Research - 16 Dec 2020