Stocks End Lower; Tech Earnings Boost Afterhours

US stocks ended an up-and-down session slightly lower, weighed down by worries over virus variants and hurdles to a fresh aid package. The S&P 500 fell by 0.15% to 3,849.62 while Dow Jones was down 22.96 points (0.07%) to 30,937.04.

IMF Boosts World Growth Outlook as Vaccines Outweigh Risks

The International Monetary Fund (IMF) raised its forecast for global growth this year, betting the rollout of coronavirus vaccines and more fiscal stimulus will offset the immediate challenge posed by the resurgent pandemic. Global gross domestic product will soar 5.5% this year, faster than the 5.2% projected in October, the fund said. It credited improvement in the US for much of the upgrade, which was offset by cuts to its predictions for the euro area and UK.

Consumer Confidence in US Improves on Outlook for Economy

US consumer confidence rose in January as Americans grew more upbeat about the outlook for the economy and job market in light of further fiscal aid and the distribution of coronavirus vaccines. The Conference Board’s index of sentiment increased to 89.3 from a revised 87.1 reading in December, according to a report. The gauge of expectations rose to a three-month high of 92.5, while a measure of sentiment about current conditions decreased to 84.4, the worst reading since May.

Home Prices in US Cities Rise at Fastest Pace Since 2014

Home prices in 20 US cities gained in November, as historically low mortgage rates continued to fuel the booming housing market. The S&P CoreLogic Case-Shiller index of property values climbed 9.1% from a year earlier. It was the biggest jump since May 2014 and followed an 8% gain in October. Nationally, the Case-Shiller index gained 9.5% in November, also the most since 2014.

UK Jobs Market Better Than Feared During November Lockdown

The UK labor market proved more resilient than expected in the three months to November as an extension of government aid helped protect jobs amid a widespread lockdown. The nation’s unemployment rate climbed to 5% in the period, the highest since 2016 but lower than the 5.1% predicted by economists, the Office for National Statistics said. The number of people in work fell by 88,000, the least since July, while the pace of increase for job cuts slowed.

Philippine finance chief seeks to liberalize finance laws to lure investments

The Philippines can attract more foreign investors by cutting corporate income tax and streamlining incentives, said Finance Secretary Carlos Dominguez who urged Congress to focus on “doable” measures as an alternative to charter amendment proposals that have drawn some concerns. “If there are areas we can liberalize by amending existing laws, then let’s do that” in the final 17 months of President Rodrigo Duterte’s term, the finance chief said.

Korea Economy Shrinks Just 1% in 2020 on Exports, Virus Control

South Korea ended the pandemic year of 2020 with a slightly smaller contraction than expected, as resilient trade and the country’s relative success in handling the coronavirus helped reduce the toll on the economy. Gross domestic product shrank 1% last year, according to figures from the Bank of Korea.

WTI Oil Dips With Near-term Demand Concerns Holding Back Rally

WTI oil edged lower as the worsening near-term coronavirus outlook raised concerns over the obstacles still facing crude’s fledgling recovery. Brent crude for March settlement rose US$0.03 to US$55.91 per barrel.

Source: Affin Hwang Research - 27 Jan 2021