Economy Highlights

US - Mortgage rates for US loans rise to 10-month high

US mortgage rates climbed to a 10-month high, reducing affordability for homebuyers as the housing market struggles to recover from depressed levels. The average rate for a 30-year fixed loan rose to 5.05% from 4.81%, the fourth straight gain, Freddie Mac said in a statement. The average 15-year rate increased to 4.29% from 4.08%. (Bloomberg)


US - Initial jobless claims fell 36,000 to 383,000

The number of Americans filing first-time claims for unemployment insurance fell to the lowest level since July 2008, showing further strength in the labor market after the jobless rate declined to a 21-month low. Applications for jobless benefits decreased by 36,000, more than forecast, to 383,000, Labor Department figures showed. Economists forecast claims would fall to 410,000, according to the median estimate in a Bloomberg News survey. (Bloomberg)


Malaysia - India-Malaysia trade volume seen doubling in 5 years

The trade volume between India and Malaysia is expected to double in five years with the signing next week of a three-in-one free trade agreement (FTA). Indian High Commissioner to Malaysia Vijay Gokhale, when disclosing this during his first visit to Sabah, said this was inevitable because tariffs would then be lower. Trade volume between the two countries was worth around RM32bn last year. (Financial Daily)


Malaysia - Dec IPI grows 4.2% on rising non-E&E activities

The country's industrial output expanded 4.2% in December compared to a year ago, on increased manufacturing activities in the non-electrical and electronic (E&E) sector. E&E makes up about 40% of the export market. The Statistics Department said for the whole year, industrial output activities had increased by 7.5% y-o-y, with manufacturing posting a 11% growth while electricity generation rose by 8.8%. The output of the mining sector, however, slipped by 0.5%. (Business Times)


EU - German exports increased in December

German exports increased for a second month in December as the global recovery boosted demand for goods and services from Europe’s largest economy. Exports, adjusted for work days and seasonal changes, rose 0.5% m-o-m after a 0.5% increase in November. Economist had forecasted a 1% gain. Imports dropped 2.3% m-o-m, after jumping 4.1% in November. Germany’s economy expanded a record 3.6% in 2010 as companies boosted output and hiring to meet orders. German exports rose 21% y-o-y in December. Shipments to countries within the EU advanced 20% for the full year of 2010 while sales to countries outside the EU increased 21%. In 2010, exports gained 18.5% y-o-y. (Bloomberg)