Stocks snap 3-day losing streak; pound strengthens

US stocks rose for the first time in four days even as uncertainly surrounded President Donald Trump’s demand for changes to pandemic relief legislation. The pound gained as an outline of the post-Brexit trade deal was reached. The S&P 500 rose by 0.01% to 3,690.01 while Dow Jones was up 114.32 points (0.38%) to 30,129.83.

Jobless claims, spending show US economy limping into year-end

US consumer spending and incomes fell more than forecast in November and filings for unemployment benefits remained at elevated levels last week, the latest signs that the autumn’s surge in coronavirus cases is sapping the economic recovery. Initial jobless claims in regular state programs dropped by 89,000 to 803,000 in the week ended Dec. 19, according to the Labor Department.

Canada’s economy expands more than expected amid second wave

Canada’s economy expanded more than forecast in October, easing worries of a sharp slowdown amid a second wave of coronavirus. Gross domestic product grew 0.4% in October from a month earlier, Statistics Canada said. The agency also released a preliminary estimate for November, which showed a 0.4% expansion.

UK, EU set to seal Brexit trade deal after fish compromise

Britain and the European Union look set to seal a historic post-Brexit trade accord in time for Christmas after negotiators reached the outline of a deal that includes a compromise on fishing rights. The negotiating teams were working late to finalize the wording of the agreement, which will formally complete Britain’s separation from the bloc almost five years after the 2016 referendum. The cabinet is also holding a conference call to briefed on the state of the negotiations, according to a British official.

China shouldn’t withdraw stimulus rapidly, World Bank warns

China should maintain accommodative monetary policy and avoid any “significant contraction” in fiscal policy next year to keep its economic recovery from the Covid-19 pandemic on track, according to the World Bank. “A premature policy exit and excessive tightening could derail the recovery,” the World Bank said. It predicts the world’s second-largest economy will grow 2% this year and 7.9% in 2021, and said the biggest risk to the outlook remains a resurgence of coronavirus.

Thai central bank holds key rate, cuts 2021 growth forecast

The Bank of Thailand kept its benchmark interest rate unchanged for a fifth straight meeting to preserve its limited policy space, while reiterating concerns about a currency rally and lowering its economic growth forecast for next year. The BOT held the policy rate at 0.5% in a unanimous decision, after cutting by a total of 75 basis points earlier this year, and said it stood ready to use more monetary tools if necessary.

Vietnam imposes as much as 25.22% tariffs on steel from China

Vietnam will impose tariffs of between 4.43% and 25.22% on imports from 16 Chinese steel producers, according to a decision by the Ministry of Industry and Trade, describing the move as anti dumping. The duties will be slapped on some cold-rolled steel products from China for five years, effective Dec. 28, according to decision on the ministry’s website. Imports of dumped steel products can cause considerable damage to Vietnam’s steel industry, it said.

Oil rallies along with equities as US crude stockpiles decline

Oil rallied along with equities as a decline in US crude inventories injected optimism into a market that’s reeling from the resurgence of the pandemic. Brent crude for February settlement rose US$1.12 to US$51.20 per barrel.

Source: Affin Hwang Research - 24 Dec 2020