Malaysia

Exports In October Fell By 3.1% YoY, the slowest since June 2013, on the back of weakening global demand and due to a very strong uptick a year ago. It is a steeper fall compared to market expectations of -0.3% YoY. Imports on the other hand, exceeded expectations and gained 9.1% YoY. Market polls had expected a 1.4% fall. Due to stronger imports, trade surplus narrowed to RM1.2b from RM9.3b. (Please refer to Economic Viewpoint for further comments)

Asia

China To Deepen Economic Reforms In 2015. China will pursue prudent monetary policy and pro-active fiscal policy next year, the ruling Communist Party's elite decision-making body was quoted as saying on Friday in a reiteration of the government's existing stance. China will deepen reforms in the world's second-largest economy in 2015 as it tries to boost domestic demand and further urbanise the country, Xinhua quoted the politburo as saying. Crucially, the politburo said China must balance the competing needs of stabilizing and reforming its economy, a nod to an on-going debate about how it can stimulate its sagging economy without compromising its quest for change. (Reuters)

North America

Hiring Surge Shows Strength Of U.S. Economy As Bears Flee. So much for secular stagnation. In the wake of November’s surge in employment and stronger wages, even skeptics of the U.S. economic recovery are turning into optimists. The 321,000 advance in payrolls followed a 243,000 increase in October that was stronger than previously reported, Labor Department figures showed yesterday. It marked the 10th straight month that employment has increased by at least 200,000, the longest stretch since the 19 months that ended in March 1995. The jobless rate held at a six-year low of 5.8%, and earnings rose by the most since June of last year. (Bloomberg)

U.S. Factory Orders Fall For Third Straight Month. New orders for U.S. factory goods fell for a third straight month in October, pointing to a slowdown in manufacturing activity. The Commerce Department said on Friday new orders for manufactured goods declined 0.7% after a revised 0.5% drop in September. Economists polled by Reuters had forecast new orders received by factories would be unchanged after a previously reported 0.6% fall in September. There are conflicting signals on the manufacturing sector, with the so-called hard data suggesting a cooling in activity, while sentiment surveys point to a building of momentum. (Reuters)

U.S. Trade Deficit Narrows Slightly; Exports Rise. The U.S. trade deficit narrowed less than expected in October as lower crude oil prices failed to offset a jump in imports, while an increase in exports suggested the economy was weathering faltering global demand. The Commerce Department said on Friday the trade gap fell 0.4% to $43.4b. September's shortfall on the trade balance was revised up to $43.6b from a previously reported $43.03b. Economists polled by Reuters had forecast the trade deficit falling to $41.4b. When adjusted for inflation, the deficit was little changed at $50.84b, suggesting trade would be a drag on fourth-quarter gross domestic product. (Reuters)

Fewer Jobs With Slowing Exports Shows Weak Canada Rebound. Fewer jobs coupled with slowing exports point to a tentative economic recovery in Canada, even as the U.S. labor market powers ahead. Canadian employment fell by 10,700 last month, led by a drop in retail positions, while the unemployment rate rose to 6.6% from a six-year low of 6.5%. The country’s trade surplus narrowed for a third straight month in October as export growth slowed, Statistics Canada reported from Ottawa. Exports rose 0.1% in October while imports climbed 0.5%. (Bloomberg)

Europe

· Euro-Area Growth Held Back By Investment Drop In 3rd Quarter. Euro-area investment fell for a second quarter, holding back growth and underlining the weakness in the economy that prompted the European Central Bank to cut its forecasts. Investment declined 0.2% in the three months through September after a 0.6% decline in the previous quarter, Eurostat, the European Union’s statistics office in Luxembourg, said today. Gross domestic product increased 0.2%, matching an initial estimate published last month. (Bloomberg)

German Industry Orders Surge But Bundesbank Cuts Growth Forecasts. German industry orders rose far more than forecast in October and though the Bundesbank dampened the mood by slashing its growth forecasts for Europe's largest economy, its president said there were signs current weakness would soon be overcome. Industrial orders surged by 2.5% on the month in October thanks to strong domestic demand while foreign appetite was moderate, data from the Economy Ministry showed on Friday. That exceeded by far a consensus forecast for a 0.5% gain and overshot the highest estimate for a 1.9% increase. But Germany's Bundesbank halved its 2015 growth forecast for Germany to 1.0% and also cut its estimate for this year to 1.4% from a forecast of 1.9% made in June. It also trimmed its prediction for 2016 to 1.6%. (Reuters)

Currencies

Dollar Index Records Largest Gain In Five Weeks. The ICE U.S. Dollar Index recorded its largest weekly gain in five weeks Friday after a blockbuster nonfarm payrolls number showed that U.S. economic growth has been even more robust than economists had believed. The index a measure of the greenback’s strength against a basket of six rivals, rose 1.237% on the week to 89.3000, its highest level since April 2006. The dollar also recorded its largest weekly gain against the yen in five weeks, finishing 2.317% higher at 121.4090 yen, a seven-year high. It traded at 119.7600 late Thursday. The euro finished the week down 1.285% at $1.2300, its largest drop in two weeks. It traded at $1.2380 Thursday. (Market Watch)

Commodities

U.S. Oil Output Growth To Slow As Global Prices Sink: Obama Adviser. The United States will continue to boost oil production but falling global prices will slow down the pace, President Barack Obama's chief economic adviser said on Sunday. "Even at a lower price of oil we are going to continue to see an increase in the production of oil. It will just increase at a lower rate than it otherwise would have," Jason Furman told Reuters on the sidelines of a business conference in Israel. (Reuters)

Oil Pushes Lower, Undeterred By Bullish Jobs Report. U.S. crude oil closed at its lowest since July 2009 on Friday as Brent averaged below $70 a barrel in the week for the first time since 2010, as strong U.S. employment data did little to lift the oil market's bearish mood. The January Brent crude contract slipped 57 cents to settle at $69.07 a barrel, while U.S. crude fell 97 cents to settle at $65.84 a barrel. Both registered their ninth loss in 10 weeks. (Reuters)

Gold Slides After U.S. Payrolls Data Beats Forecasts. Gold fell more than 1% on Friday, after U.S. November non-farm payrolls data beat forecasts, fueling expectations that the Federal Reserve will raise interest rates sooner rather than later and lifting the dollar. Spot gold was down 1.2% at $1,190.90 an ounce at 2:42 p.m. EST (1942 GMT), while U.S. gold futures settled down $17.30 an ounce, or 1.4%, at $1,190.40. Silver was down 0.9% at $16.26 an ounce. Spot platinum was down 0.9% at $1,218.42 an ounce, while palladium was up 0.7% at $799.91 an ounce. (Reuters)