US stocks rise; pound gains on Brexit deal

US stocks rose for a second day in holiday-shortened trading as investors monitored the latest developments on the congressional aid package, while the pound strengthened after a post-Brexit trade accord agreement was reached. The S&P 500 rose by 0.35% to 3,703.06 while Dow Jones was up 70.04 points (0.23%) to 30,199.87.

US holiday retail sales rose 3%, driven by online shoppers

US holiday season sales beat low expectations for the pandemic year as online shopping surged. Total retail sales grew 3% over the extended 75-day holiday period, versus a forecast of 2.4%. The number is far better than the 3.5% drop recorded during 2008, the last US recession.

Lawmakers urge Trump to prevent ‘chaos’ and sign stimulus bill

Lawmakers across the political spectrum urged President Donald Trump to sign the $900 billion coronavirus stimulus bill passed with bipartisan support last week, as millions of Americans face a loss in benefits. Trump risks being remembered for creating “chaos and misery” at the end of his term if he takes no action on two crucial and intertwined spending bills and triggers a government shutdown, Republican Senator Pat Toomey said.

Johnson sees major changes after Brexit deal

Prime Minister Boris Johnson said major changes are coming in the UK as the result of the trade deal his government negotiated with the European Union, completing the country’s separation from the bloc. “We can’t sort of suddenly decide that we’re free and then not decide how to exercise it,” Johnson said. This government has a very clear agenda to unite and level up and to spread opportunity across the country.

China’s industrial profits grow at slower pace in November

Profits at Chinese industrial enterprises grew at a slower pace in November as producer prices continued to ease. Industrial profits rose 15.5% last month, after gaining 28.2% in October, data from the National Bureau of Statistics showed. For the first 11 months of 2020, there were up 2.4% from a year earlier. The easing in November was due to the higher base compared with October, the NBS said.

Indonesia pledges to return to 3% fiscal deficit limit by 2023
Indonesia’s government will keep its promise to gradually reduce the budget deficit and return to fiscal discipline, after it had to raise the deficit cap this year amid the coronavirus pandemic, a top economic official said. The government will lower the funding gap next year and restore the deficit cap of 3% of gross domestic product by 2023, Febrio Kacaribu, head of fiscal policy at the Finance Ministry said.

Vietnam’s economy expands 4.48% in 4Q on manufacturing

Vietnam’s economic growth accelerated in the fourth quarter as exports and manufacturing extended their recovery from the pandemic slump earlier this year. Gross domestic product rose 4.48% in the fourth quarter compared to a year earlier, up from a revised 2.69% in the third quarter, the General Statistics Office said. The economy expanded 2.91% for the full year. The government’s latest full-year growth forecast for 2020 is 2%-3%.

Oil posts weekly loss with restrictions growing to curb virus

Oil declined for the first week since October as a new coronavirus mutation spreads through parts of the world and poses risks to energy demand in the wake of stricter lockdowns. Brent crude for February settlement rose US$0.09 to US$51.29 per barrel.

Source: Affin Hwang Research - 28 Dec 2020