3 hours ago
New Zealand inflation expectations fall to two-year low in fourth quarter
Reserve Bank of New Zealand forecasts New Zealand inflation in the fourth quarter falls to two-year low research showed.
The RBNZ’s two-year inflation expectations, considered the approximate period over which the central bank’s monetary policy actions are reflected in prices, were 2.76%, down from 2.83% in the previous quarter ending in September.
The annual price increase rate one year into the future was expected to slow to 3.60% from the previous 4.17%.
The forecast for annual wage inflation one year ahead is 4.43%, down from 5.04% in the third quarter, while the forecast for annual wage inflation two years ahead is 3.53%, down from 3.66% in the previous quarter. %.
The survey highlights that the central bank’s interest rate hike cycle is showing signs of reducing price pressures. The RBNZ is scheduled to hold its next policy meeting on 29 November.
— Shreyashi Sanyal
6 hours ago
Reuters Tankan Survey Shows Rise in November; Japan’s Business Confidence Improves
In November, trust in major Japanese manufacturers increased, According to the Reuters Tankan surveymeasures the business confidence of large Japanese companies.
The index improved for the first time since August as mood in the services sector rose for the second consecutive month.
The manufacturing sentiment index rose to +6 in November from +4 in October, and the services sector index rose to +27, higher than last month’s +24.
The survey highlighted a patchy economic recovery and a bleak outlook for Japan’s manufacturing industry.
This also reflected a similar improvement seen in the quarterly Tankan survey closely monitored by the Bank of Japan.
A positive number means that the number of optimistic respondents exceeds the pessimistic ones and vice versa.
— Shreyashi Sanyal
6 hours ago
CNBC Pro: These stocks stand to benefit and lose from wellness trends, says Morgan Stanley
From nutrition to beauty, Morgan Stanley says a “global shift toward wellness” is occurring, involving not only consumers but also governments.
The investment bank noted that the COVID-19 pandemic is a major factor in the increased focus on weight and its impact on health, but health involves more than just weight loss, it also includes fitness, nutrition, appearance, and It also includes sleep and mindfulness, he added.
CNBC Pro looks at stocks that Morgan Stanley says will be affected both positively and negatively.
Subscribers can read more here.
— Tan Weizhen
15 hours ago
CNBC Pro: ‘The gift that keeps on giving’: Morgan Stanley likes the memory sector and picks its top stocks
Technology themes are front and center this year, and one segment that stands out for Morgan Stanley is memory.
The investment bank calls this “the gift that keeps on giving,” noting that the sector’s “pricing power is currently among the best in tech, but it is still in the early stages of recovery.”
Banks reveal “Top Picks” and “Preferred Plays.”
CNBC Pro subscribers can read more here.
— Amara Balakrishna
18 hours ago
HSBC announces soft landing could accelerate 15% rise in global stocks
HSBC says global stocks are on track for strong gains in the new year if central banks start easing monetary policy and the Federal Reserve is able to land a soft landing.
“We expect global equity markets to rise further, rising by 15% by the end of 2024,” Alastair Pinder said in a note to clients. “However, with slower economic growth and lower interest rates, we think the market will become increasingly narrower, and while large parts of the market will be stranded, America’s dominance will likely continue.”
He noted that in recent instances where the Fed engineered a soft landing, the S&P 500 rose an average of 22% between the time it stopped raising rates and six months after it began cutting rates.
Given this, Pinder favors the technology and consumer discretionary sectors, believing that risk will be better priced following the recent sell-off.
— Samantha Subin
16 hours ago
Fed’s Goolsby says ‘golden path’ still possible
Chicago Fed President Austan Goolsby said Tuesday that the Fed aims to combat inflation without significantly hurting the economy, and a soft landing is still under consideration.
“Because of some of the strangeness of this moment, there could be a golden path to controlling inflation without a recession,” Goldsby said on CNBC’s “Squawk Box.”
Goolsby said the decline in price pressures could rival the fastest decline in inflation in the last century.
— Yun Lee
11 hours ago
US crude oil falls below $78 a barrel, the lowest since July
U.S. oil prices fell nearly 4% to their lowest since July, as concerns that the Israel-Hamas war could escalate into a broader regional conflict clouded weak economic data.
West Texas Intermediate fell $3.09, or 3.82%, to $77.73 per barrel, and Brent fell $3.19, or 3.75%, to $81.99 per barrel, both lows since July. .
The decline came after China’s exports fell more than expected in October, indicating a slowdown in global demand.
— spencer kimball
10 hours ago
Market rally may be temporary, says Wolf Research
Rob Ginsberg, a strategist at Wolf Research, said if trading activity since the start of the year is any indication, the early November rally could soon stall.
“Every rally since the July high stalls before hitting a new one-month high, then turning to a one-month low…that’s the definition of a downtrend,” Ginsburg said.
Indeed, he noted that some momentum indicators “had a positive impact on all indexes (last week) and today we saw that at the stock price level.”
— Fred Imbert