RBA decision, Japan wages, China measures

5 hours ago

Shares in China and Hong Kong rose 2% as healthcare and tech companies gained

Mainland Chinese and Hong Kong equity benchmarks rose 2% on Tuesday, led by healthcare and tech stocks respectively.

This comes after Chinese regulators took steps to calm the recent sell-off in the markets A report by the Securities and Exchange Commission of the country He said it would “guide institutional investors … to enter the market more aggressively.”

The biggest mover on the CSI 300 was Beijing Wantai Biological Pharmacy Enterprise, which rose 10%, while the biggest gainer on the Hang Seng index was tech giant Alibaba, whose shares rose 5.9%.

7 hours ago

Australia's fourth-quarter retail sales inched up

Shoppers and pedestrians walk past the Shiels store at Rundle Mall in Adelaide, Australia, on Thursday, February 11, 2021.

James Buck | Bloomberg | Good pictures

According to the latest report, retail sales in Australia increased in the December quarter Government data.

Australian retail sales volumes rose 0.3% in the fourth quarter of 2023, up from a 0.1% rise in the previous quarter and above the 0.1% growth estimated in a Reuters poll.

“The rise in December retail sales volumes was supported by lower price growth for retail goods. Consumers particularly took advantage of discounts on favorite items such as furniture and electronics,” said Ben Dorber, head of retail statistics at the Australian Bureau of Statistics.

“Striping out the effects of strong demographics and price growth clearly shows how consumers have responded to cost-of-living pressures. Sales per person have declined in every quarter since peaking in June 2022,” Dorber added.

Investors are now waiting for the policy decision The next day the Reserve Bank of Australia, The central bank is expected to hold interest rates there.

– Shreyashi Sanyal

6 hours ago

CNBC Pro: 'This Stock Could Double': Fund Manager Loads Shares of Two Banks Amid Volatility

According to fund manager Cole Smead, there are opportunities in the banking sector despite concerns about volatility and steep losses at some lenders.

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While the KBW Regional Banking Index lost more than 7% last week, a portfolio manager at Smead Capital said the two banks were bullish.

One of Smead's choices was a US regional bank, the other a former global systemically important bank.

CNBC Pro subscribers can read more here.

– Ganesh Rao

9 hours ago

The Reserve Bank of Australia is expected to keep rates on hold, making a worse pivot unlikely

The Reserve Bank of Australia (RBA) at the Central Bank Building in Sydney, Australia on May 2, 2022.

Brandon Thorne | Bloomberg | Good pictures

The Reserve Bank of Australia is due to release its policy statement on Tuesday at the end of its two-day meeting.

Analysts expect the RBA to keep its official cash rate at 4.35%, missing expectations.

Inflation for the fourth quarter of 2023 was at a two-year low of 4.1%, still above the RBA's 2-3% target range, boosting challenges for a hold.

“While an adverse pivot is unlikely at this meeting, we expect changes in tone to face further drag from higher rates, progress toward the CPI target and confirmation that rates have peaked,” wrote Helen Qiao, China & Asia economist at BofA Global Research. A customer reference.

The S&P/ASX 200 extended losses from Monday, falling 0.9%, while the Aussie dollar fell 0.06% against the US dollar.

– Shreyashi Sanyal

6 hours ago

CNBC Pro: Look beyond AI's near-term plays, Goldman says — naming long-term beneficiaries in tech and beyond

9 hours ago

Japan's household spending fell more than expected in December, as real wages fell

Household spending in Japan fell more than expected in December, compared with the 2.1% estimate by economists polled by Reuters.

The decline was smaller than the 2.9% drop seen in November, when average monthly spending per household was 329,518 yen ($2,217.11).

Average monthly income per household was 1,099,805 yen, down 4.4% in nominal terms and 7.2% in real terms from the previous year.

The numbers play into the Bank of Japan's monetary policy considerations, as the BOJ expects steady wage hikes as one of the preconditions for unwinding its ultra-loose monetary policy.

– Lim Hui Jee

12 hours ago

Oil prices rose after the US attack in the Middle East

Oil prices rose on Monday after US retaliatory strikes against Iranian forces and allied fighters over the weekend.

The West Texas Intermediate contract for March delivery was up 50 cents, or 0.69%, at $72.78 a barrel. The Brent contract for April delivery was up 66 cents, or 0.85%, at $77.99 a barrel.

The United States launched airstrikes late Friday against Iran's Islamic Revolutionary Guard Corps and allied fighters in Iraq and Syria. Attacked airstrikes More than 85 destinationsThe response came after three US troops were killed in a drone strike by Iran-allied militias.

– Spencer Kimball

16 hours ago

The market is easing expectations for Fed rate cuts

Traders have slightly tempered their expectations for interest rate cuts following the warning statements from Federal Reserve officials.

The probability of a previously highly anticipated March cut fell to just 14.5% Monday morning, according to the CME Group. FedWatch The volume was above 80% of expectations just two weeks ago.

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For the full year, the market has gone from expecting six cuts to five and even assigned a 44.6% probability of a total of four cuts.

Those moves followed Fed Chairman Jerome Powell's interview with “60 Minutes,” an interview that aired Sunday in which Powell not only cast doubt on the March cut, but also supports the view, as expressed in the Fed's December “dot plot,” of three cuts this year.

– Jeff Cox

14 hours ago

Boeing shares also fell on 737 Max 9 woes

Boeing shares fell 1.7% on Monday after the company said it was reworking 50 undelivered 737 MAX jets following the discovery of incorrectly drilled holes in some fuselages. Rework may cause delays in approximate deliveries.

The news comes amid intense scrutiny for the company after the 737 Max 9 fell from the mid-flight Alaska Airlines crash.

The stock fell 21% in 2024.

– Hakyung Kim

14 hours ago

Stick to quality stocks, especially US tech, says UBS

UBS said investors should stick with quality stocks, particularly in US tech. The Wall Street firm expects a soft landing scenario in its fundamentals, saying these companies could weather a slowdown in economic growth.

“Among stocks, we continue to view quality stocks as key holdings for investors. History shows that they perform well during periods of economic slowdown, as we expect in our fundamentals,” read the firm's chief investment office in a Monday note. Global Wealth Management.

“We hold a highly preferred position in the US IT sector, home to many quality stocks. And by complementing key holdings in quality stocks with tactical exposure to small caps, investors should be well-positioned for further upside if markets continue to rise,” the note continued.

– Sarah Min

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