Thursday, January 4, 2024, 12:33 AM EST
Japan approves funds to cover damage caused by the New Year’s Day earthquake
Japanese Prime Minister Fumio Kishida said that the Japanese Cabinet will approve the use of its reserved funds to cover the damage caused by the earthquake that struck the Noto Peninsula in Ishikawa Prefecture on New Year’s Day.
Reuters reported The amount to be considered at next Tuesday’s meeting is likely to be double the amount
Nearly 2 billion yen ($13.95 million) was used in previous similar disasters.
The reserved funds are intended for the Japanese government to deal with unexpected spending needs, and require Cabinet approval before they can be used.
— Lim Hui Ji, Reuters
Wednesday, January 3, 2024 at 9:19 PM ET
The Caixin China Services PMI for December expanded at the fastest rate since July
A special survey showed that services activity continued to grow in China in December, with foreign demand for the country’s services also rising.
The Caixin China public service business activity index rose to 52.9 in December from 51.5 in November, rising for the 12th consecutive month. The survey also indicated that the growth rate was the fastest since July.
“The growth momentum in China’s services sector continued to recover at the end of 2023,” the survey report said. “Employment rose slightly as companies exercised caution in hiring. But the slight expansion was enough to accommodate new orders, keeping the backlog unchanged.”
A PMI reading above 50 indicates expansion in activity, while a reading below this level indicates contraction.
– Shreyashi Sanyal
Wednesday, January 3, 2024 at 8:53 PM ET
Business activity in Hong Kong is improving at the fastest pace since April
Private sector business activity in Hong Kong improved at the fastest pace since April, according to S&P Global.
City Purchasing Managers Index It rose to 51.3 in December, higher than the 50.1 seen in November.
The S&P Global report noted that new business and production in Hong Kong returned to growth, although foreign demand conditions remained weak.
“The improvement in overall sales nevertheless supported faster employment growth, while companies also increased inventories amid easing cost pressures,” the report added.
– Lim Hui Ji
Wednesday, January 3, 2024 at 7:38 PM ET
Japan Airlines shares fell more than 2% as markets reacted to the collision
Japan Airlines shares fell as much as 2% on Thursday, before rebounding slightly as Japanese markets resumed trading and reacted to the JAL flight collision at Tokyo’s Haneda Airport on January 2.
The accident occurred when Japan Airlines Flight 516 collided with a Japan Coast Guard aircraft, killing five of the six crew members on board the Coast Guard aircraft.
in Regulatory filing JAL said on Thursday to the Japanese Stock Exchange that the estimated losses resulting from the plane collision amounted to 15 billion yen ($105 million), which will be covered by insurance.
Wednesday, January 3, 2024 at 7:15 PM ET
Australian shares continue to decline, hitting their lowest levels in two weeks
Australian shares continued their decline after hitting a record high earlier this week, and fell to their lowest levels in two weeks on Thursday.
The S&P/ASX 200 index fell 0.53% to trade near 7,495 – its lowest level since December 19 – down from an all-time high of 7,632.70 hit on Tuesday.
Australian markets fell, tracking a gloomy global mood after minutes from the US Federal Reserve’s December meeting showed interest rate cuts were likely in 2024, but offered little clarity on when that might happen.
Bets that the Reserve Bank of Australia will no longer raise interest rates have buoyed the country’s stock market – but those hopes have been partly driven by the Fed’s dovish shift.
The Australian dollar rose 0.1% against the US dollar in early trading.
– Shreyashi Sanyal
Wednesday, January 3, 2024 at 6:56 PM ET
CNBC Pro: These 9 stocks are cheaper than the S&P 500 — and look poised for big earnings growth in 2024
Stocks rose in 2023, as investors rallied on the narrative of an end to interest rate hikes in 2024.
Technology stocks led the charge as trends like artificial intelligence boomed.
The S&P 500 rose 24%, while the tech-heavy Nasdaq Composite ended 2023 up 43.4% in its best year since 2020.
However, there are some stocks trading at valuations lower than the broader S&P 500, which analysts expect will deliver strong earnings growth in 2024.
CNBC Pro subscribers can read about it here.
-Weezin Tan
Wednesday, January 3, 2024 at 6:56 PM ET
CNBC Pro: Deutsche Bank has named the stock that will be the “last man standing” in self-driving
Building the technology that powers self-driving cars has proven extremely difficult for car brands.
Most recently, Cruise, GM’s robotaxi service, was shut down in San Francisco due to safety issues.
Given this backdrop, Deutsche Bank named one stock as a “rare secular growth story” in the sector because the company’s technology could find buyers among any global automaker seeking to add self-driving capabilities.
CNBC Pro subscribers can read more here.
-Ganesh Rao
Wednesday, January 3, 2024 at 3:38 PM ET
Oil rises more than 3% as the United States warns the Houthis and OPEC pledges unity
Oil prices rose more than 3% on Wednesday, with the United States warning the Houthis against launching attacks in the Red Sea, and OPEC pledging unity to support market stability.
Two engineers told Reuters that Libya’s Sharara oil field was also closed due to the protests.
The February West Texas Intermediate contract gained $2.32, or 3.29%, to settle at $72.70 per barrel. The March Brent contract added $2.36, or 3.11%, to settle at $78.25 per barrel.
-Spencer Kimball
Wednesday, January 3, 2024 at 2:08 PM ET
Fed minutes show interest rate cuts are likely, but the path remains uncertain
Minutes from the Federal Reserve’s December meeting showed that while the central bank expects interest rates to fall in 2024, it views its current policy stance as appropriate.
“In their submitted forecasts, nearly all participants indicated that, reflecting the improvement in their inflation expectations, their baseline forecasts implied that a lower target range for the federal funds rate would be appropriate by the end of 2024,” the document said.
He also added: “Participants generally stressed the importance of maintaining a careful, data-driven approach to monetary policy decisions, and reiterated that it would be appropriate for policy to remain in a restrictive stance for some time until inflation moves clearly and sustainably downwards.” The goal of the committee.
– Jeff Cox
Wednesday, January 3, 2024 at 9:59 AM ET
10-year Treasury yield exceeds 4%
The yield on the 10-year Treasury note returned above 4% on Wednesday, reversing the downward trend seen at the end of 2023.
See chart…
10 years back above 4%
The move put pressure on technology and real estate stocks on the S&P 500. It also comes ahead of the minutes of the Federal Reserve’s December meeting.
-Fred Imbert
Wednesday, January 3, 2024 at 10:14 AM EST
Job opportunities are close to expectations; Manufacturing scale goes up
Job creation was in line with expectations, while the manufacturing sector remained in contraction, according to separate economic reports on Wednesday.
The Labor Department’s Job Opportunities and Labor Turnover Survey showed employment rolls at 8.79 million, roughly in line with Dow Jones estimates of 8.8 million. Total layoffs and hiring declined.
On the manufacturing side, the ISM Manufacturing report posted a reading of 47.4 for December, slightly above the estimate of 47.2 and better than 46.7 in November. The number represents the percentage of companies reporting expansion during the month, so anything below 50 represents contraction.
—Jeff Cox