1.ECB extends its bond-buying programme

Dec 10, 2020

The European Central Bank (ECB) has increased the bond-buying stimulus program by 500 billion Euros, and has extended its duration to March, 2022. It expanded its massive stimulus program on Thursday, as the continent deals with a second wave of the coronavirus pandemic, and the associated lockdowns.

Source: Financial Times

2.Coronavirus vaccine rollouts begin

Dec 10, 2020

The U.S. Food and Drug Administration has voted to endorse an emergency use of the Pfizer vaccine, paving the way for the agency to authorise its use to inoculate a nation, which has lost more than 285,000 lives to COVID-19. Britain began inoculations this week, and the United States could start vaccinations, as early as the coming weekend, while Canada on Wednesday approved its first vaccine, with initial shots due from the next week onwards.

Source: Reuters

3.OPEC output at a seven-month high in November

Dec 10, 2020

OPEC crude production rose to a seven-month high last month, climbing by just over 800,000 b/d from October, thanks largely to a recovery in Libyan output. Production by the 13 OPEC members, including Libya, Iran, and Venezuela, which are exempt from output cuts, rose to 25.07mn b/d, the highest since April. Libyan output has made a rapid recovery, since an agreement between warring factions ended port and oil field blockades in mid-September.

Source: Argus Media

4.China to step up fiscal support for a new economic strategy

Dec 11, 2020

China will step up fiscal policy support for a strategy to make its economy mainly rely on domestic demand, supply chains, and innovation, Finance Minister, Liu Kun, has said. China would strengthen fiscal and tax support for sectors involved with national economic security, and ensure the safety of sectors, such as grain, energy, technology, and health. China would establish a mechanism for local government debt financing to strengthen the prevention of hidden debt risk.

Source: Reuters

5.“Strong possibility” of no trade deal with EU: UK PM

Dec 11, 2020

UK PM, Mr. Boris Johnson, pledged British negotiators, who earlier resumed talks with their EU counterparts in Brussels, would "go the extra mile" to reach a deal, but he has said that there is a "strong possibility" the UK will fail to strike a post-Brexit trade deal with the EU. Mr. Johnson insists that the EU's demands are unreasonable, and are making negotiations unnecessarily difficult.

Source: BBC

6.China's November exports rise the fastest in 2 years

Dec 07, 2020

China’s exports in November rose 21.1% from a year earlier, beating analysts' expectations for a 12.0% increase, and quickening from an 11.4% increase in October. Imports rose 4.5%, year-on-year, in November, slower than October's 4.7% growth, and underperforming expectations in a Reuters poll for a 6.1% increase.

Source: Reuters

7. U.S. economic growth will lose momentum this quarter

Dec 10, 2020

A Reuter’s poll has showed that the US GDP for Q3 is expected to remain unrevised at a record 33.1%, when the final data is issued later this month, after contracting at an annualized 31.4% pace in Q2, its sharpest decline in at least 73 years. It was expected to grow 4.0% this quarter, compared to 3.7% predicted previously. The US economy was forecast to contract 3.6% in 2020, and then grow 3.9% in 2021, and 3.1% in 2022.

Source: Reuters

8.Nickel rallied to its highest level since October 2019 on a steel boom

Dec 10, 2020

Nickel has risen 60% from a low in March, as the industry in China, the biggest steel producer, rebounded from coronavirus closures. Demand for stainless steel has been strong this year, particularly out of China, and this is driving the market, because it accounts for 75% of the usage. Nickel stocks held in warehouses monitored by the Shanghai Futures Exchange have fallen to 18,361 tonnes, the lowest since mid-2019.

Source: Reuters