5 hours ago
The yen weakens after the Bank of Japan held interest rates, increasing flexibility in controlling the yield curve
The Japanese yen fell after the country’s central bank kept interest rates steady and said it would allow more flexibility in yield curve control policy.
The Bank of Japan said the target level for the 10-year Japanese government bond yield will remain at 0%, but it will take the upper limit of 1% “as a reference.”
The news sent the yen down nearly 0.6% against the dollar, briefly breaching the 150 yen/dollar threshold.
The benchmark Nikkei 225 index reversed earlier declines to rise 0.7%, while the Topix added 1.14%.
The Bank of Japan also raised its rate Inflation expectations For the next fiscal year, he now sees core CPI rising 2.8%, higher than the 1.9% he expected three months ago.
– Shreyashi Sanyal
6 hours ago
HSBC says lower growth is a new normal for China
Fred Newman, chief Asia economist at HSBC and co-head of global research, said China’s new normal will be lower growth than before.
“We may need to adjust our expectations regarding the upper ceiling of growth in China,” Neumann told CNBC’s “Squawk Box Asia.”
HSBC now expects the Chinese economy to grow by 4.9% this year and 4.6% in 2024. Neumann said this is likely to be the range of growth for China over the next two years and “that’s probably fine as long as the property market lasts.” “to struggle.”
Neumann said that although China’s growth outlook is more modest than before the pandemic, there are still some signs of economic recovery underway and areas of growing investment including the field of electric vehicles.
Beijing’s current growth target is 5% for 2023. Data earlier in the day showed that manufacturing activity in China recorded an increase. Unexpected contraction in October.
– Shreyashi Sanyal
8 hours ago
Manufacturing in China records surprising contraction in October
China’s manufacturing activity registered an unexpected contraction in October. According to official data.
China’s PMI reached 49.5 during the month, versus a Reuters poll estimate of 50.2. A Purchasing Managers’ Index (PMI) reading below 50 indicates contraction.
This data comes at a time when recent economic readings indicated small signs of recovery in the world’s largest emerging economy.
The Chinese government and central bank have so far kept measures in place to boost growth, in order to meet Beijing’s annual growth forecast of about 5%.
– Shreyashi Sanyal
8 hours ago
CNBC Pro: Forget Big Tech. Bernstein likes these global stocks from the “unloved” part of technology — and more
High interest rates are usually bad for technology stocks, and now they pose a major macroeconomic risk for “expensive” stocks in particular — but there are two parts of the sector that are well positioned, according to Bernstein.
One of them is “the cheapest sector in terms of [price-to-sales ratio],” He Said.
It also named its top picks and updated its screens for global technology stocks.
CNBC Pro subscribers can read more here.
-Weezin Tan
8 hours ago
CNBC Pro: Is Meta a buy after violent tech sell-off? Here’s what the pros are saying
Meta Platforms saw its shares amid a broad tech sell-off last week — but many analysts remain optimistic.
Meta stock fell 3.86% last week, although it traded up more than 2% on Monday.
“I think this technology is being sold here, [when] Looking back three or six months, I see this as a golden opportunity, not the right time [for it] “To go into hibernation mode,” Dan Ives of Wedbush Securities told CNBC on Thursday, in the midst of the market decline.
Other analysts also weighed in on the stock’s outlook.
CNBC Pro subscribers can read more here.
– Amala Balakrishner
9 hours ago
Japan’s retail sales growth rate declined after four consecutive months of acceleration
Retail sales in Japan increased by 5.8% In September compared to last year, the expansion was slower compared to the 7% growth we saw in August.
This is the first month in which the growth rate has declined after four consecutive months of accelerating growth, and it was slightly less than the 5.9% expected by economists polled by Reuters.
Total business sales reached 50.35 trillion yen ($337.17 billion) in September, the highest level since March.
– Lim Hui Ji
9 hours ago
Japanese industrial output for October sharply misses expectations
Industrial production in Japan It rose just 0.2% in September compared to the previous month, according to preliminary figures released by the country’s Ministry of Economy, Trade and Industry.
While this was a reversal from the 0.7% decline seen in August, the growth rate was sharply lower than the 2.5% month-on-month growth expected by economists polled by Reuters.
Industrial production fell by 3.7% year-on-year in September, a less severe contraction than the 4.4% decline in August.
– Lim Hui Ji
15 hours ago
Oil prices fall as investors anticipate war, Fed
Oil prices fell on Monday as investors closely watched the war between Israel and Hamas while preparing for the Federal Reserve’s monetary policy meeting later this week.
Brent crude fell 2.9% to $87.88 per barrel. US West Texas Intermediate crude futures fell 3.5% to $82.59 per barrel.
– Alex Haring, Li Ying Shan
18 hours ago
Morgan Stanley’s chief strategist says a fourth-quarter rally is unlikely
The likelihood of a fourth-quarter rally has “decreased significantly” over the past month, according to Mike Wilson, chief U.S. equity strategist at Morgan Stanley.
Wilson had expected the S&P 500 to end the year at 3,900, making him among the most bearish strategists on Wall Street according to CNBC’s Market Strategist Survey. While he noted in a Sunday note to clients that initial bullish sentiment waned in September — before rising again this month on expectations of improved third-quarter earnings and seasonal strength at the end of the year — his lower estimate of the broad market index remains.
To read more about his call, click here.
— Hakyung Kim
19 hours ago
Report says Bank of Japan is considering allowing yields to rise above 1%.
Bank of Japan officials on Tuesday are expected to consider allowing longer-term bond yields to rise above the 1% ceiling amid interest rate hikes that the central bank is trying to avoid, according to a report released Monday.
The rise in US bond yields has spread globally and is putting pressure on their global counterparts, especially since Federal Reserve Chairman Jerome Powell recently confirmed his commitment to combating inflation. Allowing flexibility on the previous yield curve cap could give BOJ officials some breathing room, Nikkei Asia reported, Citing sources familiar with the talks.
Rising interest rates on US bonds have led to a flow of money into the dollar, putting downward pressure on the yen and exacerbating inflation. Allowing some flexibility regarding the cap deters speculators while helping Japan manage its inflation problem.
The yen rose against the US dollar following the Nikkei report, most recently trading at 149.21.
—Jeff Cox
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”