- Stocks slip amid China headwinds and Fed minutes: Stock market news today Yahoo Finance
- Dow Jones Falls Ahead Of Fed Minutes; Meta Plans To Launch ‘Twitter Killer’ Separator Site title Separator Site title Investor’s Business Daily
- Markets Fall at Midday Ahead of the Release of the Fed’s Latest Meeting Minutes Investopedia
- Stocks fall amid China headwinds with eyes on Fed minutes: Stock market news today Yahoo Finance
- Dow Falls As Fed Minutes Show Hikes On Deck; Microsoft Nears Apple’s Milestone Investor’s Business Daily
- View Full Coverage on Google News
Tag Archives: slip
Kim Kardashian Has Been Branded “Petty” And “Vindictive” After Seemingly Letting Slip The Real Reason Why She Wasn’t Happy At Kourtney Kardashian’s Wedding – BuzzFeed News
- Kim Kardashian Has Been Branded “Petty” And “Vindictive” After Seemingly Letting Slip The Real Reason Why She Wasn’t Happy At Kourtney Kardashian’s Wedding BuzzFeed News
- Kim Kardashian Says Kourtney Kardashian ‘Doesn’t Have Any Friends’ — Except Travis Barker — Amid Dolce and Gabbana Feud Yahoo Entertainment
- Kim Kardashian Says Kourtney Kardashian “Doesn’t Have Friends” Cosmopolitan
- Kim Kardashian Might Have Just Made Her Harshest Comment About Kourtney Kardashian Yet Yahoo Life
- The Feud Between Kim And Kourtney Kardashian Has Now Somehow Gotten Even Messier. Here’s Everything You Need To Know. BuzzFeed News
- View Full Coverage on Google News
A verbal slip by Russia’s Vladimir Putin on a rare visit to occupied Ukraine suggested the trip happened days earlier and was kept secret – Yahoo News
- A verbal slip by Russia’s Vladimir Putin on a rare visit to occupied Ukraine suggested the trip happened days earlier and was kept secret Yahoo News
- Putin supposedly meets top military officials in occupied Ukraine | DW News DW News
- Details in Kremlin video of Putin’s ‘Easter’ visit to occupied Ukraine suggest trip may have taken place last week Meduza
- Putin makes surprise visit to Russian-held areas of Ukraine, Kremlin says NBC News
- Putin met with a sanctioned Xi Jinping aide, a middle finger to the US that could help Russia’s invasion of Ukraine Yahoo News
- View Full Coverage on Google News
Shares slip as China data stokes economic slowdown fears
LONDON/HONG KONG, Jan 17 (Reuters) – European shares paused their new year rally and Asian equities slipped after China reported weak fourth-quarter economic data on Tuesday, keeping investors on edge over the prospects of a global recession.
The Euro STOXX 600 (.STOXX) lost 0.2%, slipping from its nine-month high hit on Monday. Global equities have enjoyed a rally so far in 2022, spurred by hopes of a rebound in China’s economy and an easing of prices pressures in the United States and Europe.
But the Chinese data showed that the world’s second-biggest economy grew 2.9% in the fourth quarter of last year, beating expectations but underscoring the toll exacted by Beijing’s stringent “zero-COVID” policy.
China’s growth for 2022 of 3% was far below the official target of about 5.5%. Excluding a 2.2% expansion after COVID-19 first hit in 2020, it was the worst showing in nearly half a century.
Asia Pacific shares outside Japan (.MIAPJ0000PUS) widened losses in response, and were last down 0.4%. Shares in Hong Kong’s (.HSI) dropped 0.8% and China’s benchmark CSI300 Index (.CSI300) clawed back losses to close flat.
In Europe, China-exposed financials HSBC (HSBA.L) and Prudential (PRU.L) fell 1% and 0.4% respectively. Economy-sensitive consumer staples such as Unilever and Danone (DANO.PA) also fell more than 1% each.
Market players said investors were taking stock of how economies would expand as inflation peaks and central bank tightening of monetary policy slows, with the China data underscoring doubts over whether it could act as a spur.
“What will be the thing that reinvigorates growth?” said Gaël Combes, head of fundamental research at Unigestion. “China is probably unlikely to provide the lift is has provided in the past, like during the global financial crisis.”
Wall Street was set to open slightly lower after a public holiday on Monday, with E-mini futures for the S&P 500 down 0.3%.
BOJ UNDER PRESSURE
The dollar index bounced from a seven-month low of 101.77 made a day ago, holding at 102.30, while the Japanese yen stayed close to seven-month highs as investors held their breath for a potential policy shift at the Bank of Japan (BOJ).
The yen steadied around 128.51 on Tuesday after hitting a top of 127.22 per dollar on Monday, with traders braced for sharp moves when the Bank of Japan (BOJ) concludes a two-day meeting on Wednesday.
The BOJ is under pressure to change its interest rate policy as soon as Wednesday, after its attempt to buy itself breathing room backfired, emboldening bond investors to test its resolve.
Euro zone bond yields inched up from month lows hit late last week, but trading in bonds globally was cautious ahead of the result of the BOJ meeting.
Across the world, the R-word continues to loom large.
Two-thirds of private and public sector chief economists surveyed by the World Economic Forum in Davos expected a global recession this year, with some 18% considering it “extremely likely” – more than twice as many as in the previous survey conducted in September 2022.
As equities rallied this year, other riskier assets also gained. The No.1 cryptocurrency bitcoin has clocked a gain of about a quarter in January, leaping over 20% in the past week alone, putting in on course for its best month since October 2021. It was last trading flat at $21,208.
Spot gold was down 0.5% at $1909.23 per ounce.
Reporting by Tom Wilson in London and Kane Wu in Hong Kong; Editing by Gerry Doyle, Neil Fullick and Alex Richardson
Our Standards: The Thomson Reuters Trust Principles.
Stocks Slip as Risk Sentiment Erodes, Yields Rise: Markets Wrap
(Bloomberg) — US equities erased gains as Treasury yields ticked higher in yet another about face in sentiment in the final week of a dismal year for markets.
Most Read from Bloomberg
Both the S&P 500 and the Nasdaq 100 slipped. Shares in Tesla Inc. rose, snapping a seven-day losing streak prompted by concerns about ebbing demand. Treasury yields edged higher and a gauge of the dollar pared losses.
The still-cautious mood is damping hopes for a rally in the last trading week of 2022 after a brutal year for financial markets. Global equities have lost a fifth of their value, the largest decline since 2008 on an annual basis, and an index of global bonds has slumped 16%. The dollar has surged 7% and the US 10-year yield has jumped to above 3.80% from just 1.5% at the end of 2021.
“We think investors have become way too pessimistic given where we are in the rate hiking cycle,” wrote Nancy Tengler, CEO and chief investment officer at Laffer Tengler Investments. Following one of the fastest rate-hiking regimes in history, “we expect the economy to slow materially or enter recession at some point in 2023. To be sure a severe recession would be bearish for stocks, yet given the resilience of the U.S. economy and the tight labor market, we are expecting a slowdown or shallow and brief recession. That could allow stocks to rally in the second half of 2023.”
In a bid to revive Hong Kong as a finance hub, the city will end some of its last major Covid rules, scrapping gathering limits to vaccination checks and testing for travelers. Still, while the dismantling of Covid curbs may be a boost for the global economy, there’s concern about inflation pressures that could prompt the policy makers in the US to maintain tight monetary policy.
Effects of the Federal Reserves aggressive tightening policy is taking a toll on the housing market. Data Wednesday showed US pending home sales fell for a sixth month in November to the second-lowest on record. With borrowing costs roughly double where they were at the start of the year, home sales, and therefore prices, have been declining for months.
Elsewhere in markets, the Stoxx Europe 600 index advanced, led by basic-resources companies as prices for industrial metals including copper climbed. Most European bonds gained, with Germany’s 10-year yield falling more than five basis points.
Oil dipped amid thin liquidity as investors weighed the fallout from a Russian ban on exports to buyers that adhere to a price cap. Iron ore surged to its highest since early August, while copper gained in New York as China’s rollback of pandemic curbs boosted prospects for commodities demand in 2023.
Key events this week:
-
US initial jobless claims, Thursday
-
ECB publishes economic bulletin, Thursday
Some of the main moves in markets:
Stocks
-
The S&P 500 fell 0.2% as of 10:42 a.m. New York time
-
The Nasdaq 100 fell 0.2%
-
The Dow Jones Industrial Average was little changed
-
The Stoxx Europe 600 was little changed
-
The MSCI World index fell 0.2%
Currencies
-
The Bloomberg Dollar Spot Index was little changed
-
The euro was little changed at $1.0638
-
The British pound rose 0.4% to $1.2079
-
The Japanese yen fell 0.4% to 134.08 per dollar
Cryptocurrencies
-
Bitcoin fell 0.4% to $16,620.98
-
Ether fell 1.5% to $1,192.59
Bonds
-
The yield on 10-year Treasuries advanced two basis points to 3.87%
-
Germany’s 10-year yield declined one basis point to 2.51%
-
Britain’s 10-year yield advanced six basis points to 3.70%
Commodities
-
West Texas Intermediate crude fell 2.5% to $77.53 a barrel
-
Gold futures fell 0.7% to $1,809.50 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson, Robert Brand and Peyton Forte.
Most Read from Bloomberg Businessweek
©2022 Bloomberg L.P.
The Fed’s New Key Inflation Rate Cooled In November; S&P 500 Futures Slip
The core inflation rate most closely watched by the Federal Reserve eased further in November, though a touch less than expected. Yet Fed chief Jerome Powell has recently put the focus on a new “most important” inflation rate to make the case for continued rate hikes: PCE services less housing, which slipped to 4.3% last month. The S&P 500 rose modestly, reversing early losses following the personal consumption expenditures report.
X
The PCE (personal consumption expenditures) price index rose 0.1% on the month. The PCE inflation rate continued to ease from June’s 40-year high of 7%, slipping to 5.5%. Core prices, minus food and energy, rose 0.2% on the month as the annual core inflation rate eased to 4.7%.
Wall Street had expected a 0.2% increase in the PCE price index and a 0.2%, with an overall 5.5% inflation rate and 4.6% core rate.
Powell Shifts Goalposts With New Key Inflation Rate
Powell’s favorite new inflation rate happens to be the most problematic one for the S&P 500. The gauge factors out goods inflation, which is rapidly falling. It also excludes housing inflation, which appears set to fall in 2023 as government data catches up to the stalling growth of market rents.
That leaves only core services other than housing, such as health care, education, hospitality and haircuts. Because price changes for such services are closely linked to wage growth, they provide the best signal of where core inflation is heading, Powell said.
The focus on this statistic is so new that it isn’t provided in Commerce Department’s report or a subject of Wall Street estimates. IBD calculations show that the price index for PCE services minus housing and energy rose 0.3% on the month and 4.3% from a year ago, down from October’s upwardly revised 4.7% annual increase.
The tamer monthly inflation reading for PCE services minus housing and energy came as transportation services prices fell 2.1% from October, but remained 11.8% above year-ago levels. Health care services inflation eased to a 0.2% monthly gain.
The Fed’s new key inflation rate isn’t great for the S&P 500 because it puts the focus on the strongest part of the economy: the ultratight labor market. Until the job market cracks, wage growth is likely to remain stubbornly high, and the Fed may hike its benchmark interest rate higher and for longer than markets anticipate.
S&P 500, Treasury Yields React To PCE Inflation Rate
After the PCE inflation report, the S&P 500 added 0.4% in Friday morning’s stock market action. The Dow Jones industrial average rose 0.3%, while the Nasdaq composite edged up 0.2%, after sliding at the open.
The S&P 500 and broader market have come under pressure since the Fed’s half-point rate hike and projections for further tightening to the 5%-5.25% range in 2023. Worries about the earnings outlook and China’s Covid blow-up are adding to concerns about Fed overtightening. Yet the bond market doesn’t appear to be buying Fed guidance. As of Friday morning, markets were pricing in a peak rate of 4.75%-5%.
Through Thursday’s close, the S&P 500 is off 20.3% from its record closing high on Jan. 4. While the S&P 500 remains 6.9% above its 52-week closing low, the index has fallen back below its 50-day an 200-day moving averages.
The 10-year Treasury yield rose 6 basis points to 3.75%.
Make sure to read IBD’s daily afternoon The Big Picture column to stay on top of underlying market trends and what they mean for your trading decisions.
YOU MAY ALSO LIKE:
These Are The 5 Best Stocks To Buy And Watch Now
Join IBD Live Each Morning For Stock Tips Before The Open
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
Luka Doncic, Jason Kidd ejected as Mavericks slip below .500 in loss to Timberwolves
The Dallas Mavericks have had perhaps the most frustrating season of any team in the Western Conference this season, and things just went from bad to worse on Monday in a loss to the Minnesota Timberwolves. That defeat, their 16th of the season, dropped the Mavericks below .500, but it wasn’t just the loss itself that will bother Dallas fans. It was the way in which it came.
With the Mavericks trailing in the third quarter, Luka Doncic tried to draw a foul by initiating contact with defender Jaden McDaniels before a shot. He didn’t get the whistle. When Doncic complained, he was quickly issued two technical fouls and ejected. Coach Jason Kidd came to his defense, and he too was ejected.
Doncic has been noticeably frustrated with officials all season, but the numbers suggest he’s getting plenty of calls. He’s averaging a career-high 10.3 free throw attempts per game this season. Of course, he also has a career-high 38 percent usage rate, but even once that is adjusted for, his 45.3 percent free throw rate is also a career-best. By that measure, Doncic is getting more calls than ever.
He needs them, because the team Dallas has put around him is otherwise incapable of generating offense. The absence of Jalen Brunson, who is thriving in New York, has put an enormous burden on Doncic’s shoulders. Doncic is feeling that burden, and he let his frustration get the better of him on Monday. With the Mavericks now tied for 10th in the Western Conference, it’s hard to blame him.
require.config({"baseUrl":"https://sportsfly.cbsistatic.com/fly-0377/bundles/sportsmediajs/js-build","config":{"version":{"fly/components/accordion":"1.0","fly/components/alert":"1.0","fly/components/base":"1.0","fly/components/carousel":"1.0","fly/components/dropdown":"1.0","fly/components/fixate":"1.0","fly/components/form-validate":"1.0","fly/components/image-gallery":"1.0","fly/components/iframe-messenger":"1.0","fly/components/load-more":"1.0","fly/components/load-more-article":"1.0","fly/components/load-more-scroll":"1.0","fly/components/loading":"1.0","fly/components/modal":"1.0","fly/components/modal-iframe":"1.0","fly/components/network-bar":"1.0","fly/components/poll":"1.0","fly/components/search-player":"1.0","fly/components/social-button":"1.0","fly/components/social-counts":"1.0","fly/components/social-links":"1.0","fly/components/tabs":"1.0","fly/components/video":"1.0","fly/libs/easy-xdm":"2.4.17.1","fly/libs/jquery.cookie":"1.2","fly/libs/jquery.throttle-debounce":"1.1","fly/libs/jquery.widget":"1.9.2","fly/libs/omniture.s-code":"1.0","fly/utils/jquery-mobile-init":"1.0","fly/libs/jquery.mobile":"1.3.2","fly/libs/backbone":"1.0.0","fly/libs/underscore":"1.5.1","fly/libs/jquery.easing":"1.3","fly/managers/ad":"2.0","fly/managers/components":"1.0","fly/managers/cookie":"1.0","fly/managers/debug":"1.0","fly/managers/geo":"1.0","fly/managers/gpt":"4.3","fly/managers/history":"2.0","fly/managers/madison":"1.0","fly/managers/social-authentication":"1.0","fly/utils/data-prefix":"1.0","fly/utils/data-selector":"1.0","fly/utils/function-natives":"1.0","fly/utils/guid":"1.0","fly/utils/log":"1.0","fly/utils/object-helper":"1.0","fly/utils/string-helper":"1.0","fly/utils/string-vars":"1.0","fly/utils/url-helper":"1.0","libs/jshashtable":"2.1","libs/select2":"3.5.1","libs/jsonp":"2.4.0","libs/jquery/mobile":"1.4.5","libs/modernizr.custom":"2.6.2","libs/velocity":"1.2.2","libs/dataTables":"1.10.6","libs/dataTables.fixedColumns":"3.0.4","libs/dataTables.fixedHeader":"2.1.2","libs/dateformat":"1.0.3","libs/waypoints/infinite":"3.1.1","libs/waypoints/inview":"3.1.1","libs/waypoints/jquery.waypoints":"3.1.1","libs/waypoints/sticky":"3.1.1","libs/jquery/dotdotdot":"1.6.1","libs/jquery/flexslider":"2.1","libs/jquery/lazyload":"1.9.3","libs/jquery/maskedinput":"1.3.1","libs/jquery/marquee":"1.3.1","libs/jquery/numberformatter":"1.2.3","libs/jquery/placeholder":"0.2.4","libs/jquery/scrollbar":"0.1.6","libs/jquery/tablesorter":"2.0.5","libs/jquery/touchswipe":"1.6.18","libs/jquery/ui/jquery.ui.core":"1.11.4","libs/jquery/ui/jquery.ui.draggable":"1.11.4","libs/jquery/ui/jquery.ui.mouse":"1.11.4","libs/jquery/ui/jquery.ui.position":"1.11.4","libs/jquery/ui/jquery.ui.slider":"1.11.4","libs/jquery/ui/jquery.ui.sortable":"1.11.4","libs/jquery/ui/jquery.ui.touch-punch":"0.2.3","libs/jquery/ui/jquery.ui.autocomplete":"1.11.4","libs/jquery/ui/jquery.ui.accordion":"1.11.4","libs/jquery/ui/jquery.ui.tabs":"1.11.4","libs/jquery/ui/jquery.ui.menu":"1.11.4","libs/jquery/ui/jquery.ui.dialog":"1.11.4","libs/jquery/ui/jquery.ui.resizable":"1.11.4","libs/jquery/ui/jquery.ui.button":"1.11.4","libs/jquery/ui/jquery.ui.tooltip":"1.11.4","libs/jquery/ui/jquery.ui.effects":"1.11.4","libs/jquery/ui/jquery.ui.datepicker":"1.11.4"}},"shim":{"liveconnection/managers/connection":{"deps":["liveconnection/libs/sockjs-0.3.4"]},"liveconnection/libs/sockjs-0.3.4":{"exports":"SockJS"},"libs/setValueFromArray":{"exports":"set"},"libs/getValueFromArray":{"exports":"get"},"fly/libs/jquery.mobile-1.3.2":["version!fly/utils/jquery-mobile-init"],"libs/backbone.marionette":{"deps":["jquery","version!fly/libs/underscore","version!fly/libs/backbone"],"exports":"Marionette"},"fly/libs/underscore-1.5.1":{"exports":"_"},"fly/libs/backbone-1.0.0":{"deps":["version!fly/libs/underscore","jquery"],"exports":"Backbone"},"libs/jquery/ui/jquery.ui.tabs-1.11.4":["jquery","version!libs/jquery/ui/jquery.ui.core","version!fly/libs/jquery.widget"],"libs/jquery/flexslider-2.1":["jquery"],"libs/dataTables.fixedColumns-3.0.4":["jquery","version!libs/dataTables"],"libs/dataTables.fixedHeader-2.1.2":["jquery","version!libs/dataTables"],"https://sports.cbsimg.net/js/CBSi/app/VideoPlayer/AdobePass-min.js":["https://sports.cbsimg.net/js/CBSi/util/Utils-min.js"]},"map":{"*":{"adobe-pass":"https://sports.cbsimg.net/js/CBSi/app/VideoPlayer/AdobePass-min.js","facebook":"https://connect.facebook.net/en_US/sdk.js","facebook-debug":"https://connect.facebook.net/en_US/all/debug.js","google":"https://apis.google.com/js/plusone.js","google-platform":"https://apis.google.com/js/client:platform.js","google-csa":"https://www.google.com/adsense/search/async-ads.js","google-javascript-api":"https://www.google.com/jsapi","google-client-api":"https://apis.google.com/js/api:client.js","gpt":"https://securepubads.g.doubleclick.net/tag/js/gpt.js","hlsjs":"https://cdnjs.cloudflare.com/ajax/libs/hls.js/1.0.7/hls.js","recaptcha":"https://www.google.com/recaptcha/api.js?onload=loadRecaptcha&render=explicit","recaptcha_ajax":"https://www.google.com/recaptcha/api/js/recaptcha_ajax.js","supreme-golf":"https://sgapps-staging.supremegolf.com/search/assets/js/bundle.js","taboola":"https://cdn.taboola.com/libtrc/cbsinteractive-cbssports/loader.js","twitter":"https://platform.twitter.com/widgets.js","video-avia":"https://vidtech.cbsinteractive.com/avia-js/2.4.0/player/avia.min.js","video-avia-ui":"https://vidtech.cbsinteractive.com/avia-js/2.4.0/plugins/ui/avia.ui.min.js","video-avia-gam":"https://vidtech.cbsinteractive.com/avia-js/2.4.0/plugins/gam/avia.gam.min.js","video-avia-hls":"https://vidtech.cbsinteractive.com/avia-js/2.4.0/plugins/hls/avia.hls.min.js","video-avia-playlist":"https://vidtech.cbsinteractive.com/avia-js/2.4.0/plugins/playlist/avia.playlist.min.js","video-ima3":"https://imasdk.googleapis.com/js/sdkloader/ima3.js","video-ima3-dai":"https://imasdk.googleapis.com/js/sdkloader/ima3_dai.js","video-utils":"https://sports.cbsimg.net/js/CBSi/util/Utils-min.js","video-vast-tracking":"https://vidtech.cbsinteractive.com/sb55/vast-js/vtg-vast-client.js"}},"waitSeconds":300});
Stock futures slip to start the week with Fed meeting, key inflation data on deck
U.S. stock futures were modestly lower on Sunday evening ahead of a week with several anticipated events in the ongoing fight against inflation.
Futures for the Dow Jones Industrial Average shed 50 points, or about 0.2%. Those for the S&P 500 and Nasdaq 100 were 0.2% and 0.3%, respectively.
The move in futures comes as investors will be focused on inflation this week. On Tuesday, the November consumer price index will be released, and traders will be looking for a sign that inflation is slowing.
The Federal Reserve has a two-day meeting starting the same day. The central bank is expected to announce another rate hike on Wednesday, though traders are anticipating a smaller move than in recent months.
In addition to the expected rate hike, the Fed’s updated economic projections and Chair Jerome Powell’s press conference could be key signals for what the central bank wants to do in the coming months.
“Financial conditions have eased dramatically since the October CPI reading released last month, so the Fed will likely use the December FOMC meeting to walk those back. …We think the markets are too sanguine on rates after the first quarter and we expect Powell to take a more hawkish tone and for the dots to indicate higher rates for a longer period of time than what is currently being priced in by the futures markets,” said Cliff Hodge, chief investment officer for Cornerstone Wealth.
Wall Street is coming off a rocky week that saw all three major averages lose ground. The Dow fell 2.77% for its worst week since September. The S&P 500 dropped 3.37%, while the Nasdaq Composite shed 3.99%.
Global stocks slip after China’s zero-Covid protests
Global stocks and oil prices slipped on Monday after protests in China against the government’s Covid-19 policies dragged on sentiment and added to uncertainty about the outlook of the world’s second-largest economy.
In Hong Kong, the Hang Seng China Enterprises index dropped as much as 4.5 per cent before pulling back to shed 1.6 per cent. The decline on China’s CSI 300 index of Shanghai- and Shenzhen-listed shares was as great as 2.8 per cent before it was trimmed to just over 1 per cent.
Demonstrations broke out in Beijing, Shanghai and other cities over the weekend against government-induced pandemic restrictions. Discontent has intensified since a fire in the city of Urumqi killed 10 people last week, prompting vigils across China as authorities denied allegations that coronavirus restrictions had hampered rescue efforts and prevented residents from escaping the blaze.
Europe’s regional Stoxx 600 slid 0.9 per cent in midday trading while London’s FTSE 100 dropped 0.3 per cent. The S&P 500 was set to shed 0.9 per cent, as suggested by futures pinned to the index, when trading begins on Wall Street.
Oil dropped sharply, with Brent crude, the international benchmark, down nearly 3 per cent to trade at $81.18 a barrel, and US marker West Texas Intermediate shedding 2 per cent to hit $74.19.
Growing unrest in China has hit investors with a “reality check”, said Emmanuel Cau, head of European equity strategy at Barclays.
“China reopening hope was part of the bullish end of year narrative,” Cau added. “Investors now realise that whatever the direction of travel is on zero-Covid, it won’t be a smooth process.”
Traders said the protests added to uncertainty about China as a rise in coronavirus infections has increased pressure on local officials to step up enforcement of President Xi Jinping’s strict zero-Covid policy.
“Investor confidence has already been battered this year, and it’s difficult to comprehend what the direction of the market will be next,” said Louis Tse, managing director of Hong Kong-based brokerage Wealthy Securities.
Tse said investors were concerned about a lack of additional support for China’s economy as infections soared to records and undercut a rally that had pushed the Hang Seng China Enterprises index up more than 17 per cent this month.
The use of blank paper as a symbol of protest against censorship caused trouble for some listed Chinese companies. The Shanghai-listed shares of Shanghai M&G Stationery, a paper supplier, fell as much as 3.1 per cent on Monday. It clarified in an exchange filing that a statement circulating on social media, which claimed the company had halted sales of A4 paper “to safeguard national security”, was a forgery.
The muddled outlook for China’s economy weighed on the renminbi. The Chinese currency fell as much as 1.1 per cent to Rmb7.24 against the dollar.
The US dollar index traded in a basket of its international peers was steady, benefiting in part from the “flare-up in China risks”, said Lee Hardman, a currency analyst at MUFG.
Martin Petch, vice-president at Moody’s Investors Service, said the protests “have the potential to be credit negative if they are sustained and produce a more forceful response by the authorities”.
“Though this is not our base case,” he added, “this would lead to an increased level of uncertainty over the degree of political risk in China, spilling over into damaged confidence and hence consumption in an already weakened economy.”
The unrest weighed on equities elsewhere in Asia, with Japan’s benchmark Topix down 0.7 per cent, while South Korea’s Kospi was down 1.2 per cent.
Hong Kong stocks slip; Asia markets mixed ahead of Fed rate decision
Oil prices rise following industry report of fall in U.S. crude inventories
Oil prices rose on Wednesday as persisting demand in spite of high interest rate hikes, industry reports showed a drop in U.S. crude inventories, Reuters reported citing American Petroleum Institute figures released on Tuesday.
Brent crude futures gained $1.31, or 1.46%, to stand at $95.87 per barrel, while U.S. West Texas Intermediate rose 1.28% to $89.67 per barrel.
— Lee Ying Shan
South Korean, Japanese defense stocks rise on North Korea missile barrage confirmation
Defense-related stocks listed in South Korea and Japan jumped after military authorities in Seoul confirmed North Korea fired more than 10 types of missiles off its eastern coast.
The barrage of missiles included one ballistic missile that landed in the free waters on South Korea’s side of the Northern Limit Line, a de facto sea border that separates the two Koreas — the first instance since the Korean War, authorities said.
Shares of defense companies Hanwha Aerospace jumped more than 5% in Korea’s morning trade, and Victek climbed more than 7%.
Japanese defense stocks were trading slightly higher with Hosoya Pyro-Engineering up nearly 1%.
–Jihye Lee
Bank of Japan board members discussed inflation, Kuroda hints at policy shift ahead
Policy board members at the Bank of Japan’s latest meeting agreed that it is appropriate to “persistently continue with its large-scale monetary easing,” according to minutes released Wednesday.
One member said the central bank’s stance of easing should continue even if inflation accelerates in the short run, as long as expectations remain low.
The BOJ’s monetary policy targets price stability not foreign exchange rates, a few members said, and that it should “carefully explain” the necessity to maintain the current stance.
Some members said an expansion of inbound tourism consumption was one way to benefit from the weaker yen.
Separately, BOJ Governor Haruhiko Kuroda reportedly told the parliament that the yield curve control policy could be adjusted in future, according to Reuters.
“If the achievement of our 2% inflation target comes into sight, making yield curve control more flexible could become an option,” Kuroda was quoted as saying.
— Abigail Ng
South Korea’s inflation rises in October, more than estimates
South Korea’s consumer price index rose 5.7% in October from the same period a year ago, higher than average estimates of 5.6% predicted by a Reuters poll.
Data from Statistics Korea showed prices rose 0.3% compared to the previous month.
Prices of electricity, gas prices and industrial prices led the increase, and core inflation, which excludes food and oil prices, rose 4.8% compared to a year ago.
–Jihye Lee
CNBC Pro: Goldman’s Currie reveals ‘the best’ hedge against inflation, rate hikes and geopolitical risks
Goldman’s Jeff Currie says there’s one investment that can protect investors from rising interest rates, inflation, and geopolitical risk.
Currie, global head of commodities research at Goldman Sachs, said it has 20-30% growth potential in the short term, with additional upside risks to the price target.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Greater Chinese stocks rally on unconfirmed posts of reopening discussion
Stocks in Hong Kong and mainland China rallied Tuesday after unconfirmed reports circulated about a committee being formed for reopening discussions in China. Chinese foreign ministry spokesperson Zhao Lijian told Reuters that he was unaware of the situation.
“I don’t know where you got this information. I truly don’t know anything about this,” Zhao was quoted as saying.
Economist Hao Hong of Grow Investment Group tweeted that the rumored committee is reviewing data from multiple countries and aiming for a reopening in March next year.
–Jihye Lee
Stocks close lower
Stocks finished lower as markets prepared for another Fed rate decision due out Wednesday.
The Dow Jones Industrial Average fell 79.75 points, or 0.24%, to 32,653.20, while the S&P 500 slid 0.41% to 3,856.10. The Nasdaq Composite shed 0.89% to 10,890.85.
— Samantha Subin
A Fed pivot is far off, says New York Life’s Goodwin
Investors may be getting a bit too excited about potential changes from the Federal Reserve, according to Lauren Goodwin, economist and portfolio strategist at New York Life Investments.
Goodwin said in a note that she expected the Fed to hike by 0.75 of a percentage point on Wednesday and half a point in December, but that the slowdown should not be seen as the start of a big shift from the central bank.
“A Fed pause is not the same as a pivot. Certainly, deteriorating economic and credit conditions could cause the Fed to pivot modestly at some point, but a full pivot into accommodative territory is highly unlikely in the next year,” Goodwin said in a note.
Goodwin pointed out that the first rate hikes should now start to show their impact across the broad economy, instead of just housing. However, the Fed will need several months of data to go its way before changing course.
“At this point, with inflation surprising as much as it has already, the Fed will want to see clear signs of reversal in wage growth before pivoting. Recession should be considered a base case rather than a risk,” Goodwin said.
— Jesse Pound