US stocks drop after hope fades for expanded aid

US stocks pulled back from record highs, with small-cap shares posting their biggest drop in a month, as prospects faded for bigger government aid checks to individuals. The S&P 500 fell by 0.22% to 3,727.04 while Dow Jones was down 68.30 points (0.22%) to 30,335.67.

McConnell rebuffs Trump, Democrats by blocking US$2,000 checks

Senate Majority Leader Mitch McConnell blocked an attempt by Democrats to force quick action increasing direct stimulus payments to US$2,000 as President Donald Trump warned that failing to act now amounted to a “death wish” by Republicans. McConnell objected to a motion by Senate Minority Leader Chuck Schumer to approve by unanimous consent a stimulus-checks bill that passed the House.

US 20-city home price index posts biggest gain since 2014

A measure of home prices in 20 US cities rose in October by the most since 2014 as ultra-low mortgage rates and increased buyer appetite for more space depleted housing inventory. The S&P CoreLogic Case-Shiller index of property values climbed 7.95% from the same month the previous year, data showerd. Home prices rose 1.6% from the previous month, also more than projected and the most since April 2013.

EU and Chinese leaders set to give blessing to investment accord

European Union and Chinese leaders are poised to announce a hard-fought agreement to expand opportunities in China for foreign investors. European Commission chief Ursula von der Leyen and Charles Michel, who chairs the bloc’s summits, plan to speak with Chinese President Xi Jinping in a video conference on Wednesday to signal the successful completion of negotiations begun in 2013 on an EU-China investment pact, according to officials in Brussels

EU governments approve post-Brexit trade agreement with UK

European Union governments formally approved the bloc’s post-Brexit trade accord with the UK, paving the way for an agreement to come into force on Jan. 1 that will avoid the discord of a no-deal departure. The decision by the member states will allow for the EU and UK to sign the agreement on Wednesday, according to a statement by the Council of the EU.

India plans spending boost to counter covid impact

India is set to swing from being a cautious spender in 2020 to opening the fiscal floodgates as Prime Minister Narendra Modi seeks to pull Asia’s third-biggest economy bank from the worst of the pandemic. Curbs imposed by the finance ministry on more than 80 government departments and ministries earlier in the year to preserve cash were relaxed this quarter.

Philippines seeks new US$11 billion debt from central bank

The Philippine government is seeking a new 540 billion-peso (US$11.2 billion) loan from the central bank to aid in pandemic relief measures, Treasurer Rosalia de Leon said. The request for a new loan was transmitted to the central bank after the government repaid its previous debt of the same amount, de Leon said. This is the third time that the government has requested support from the Bangko Sentral ng Pilipinas.

Oil jumps after industry group reports US crude supply decline

Oil extended gains after an industry group reported a larger-than-expected decrease in US crude stockpiles. Brent crude for February settlement rose US$0.23 to US$51.09 per barrel.

Source: Affin Hwang Research - 30 Dec 2020