2 hours ago
India’s manufacturing activity increases at slowest pace since February
Indian factory activities It’s rising at the slowest pace since February, according to a private S&P Global survey.
The country’s Manufacturing Purchasing Managers’ Index was 55.5, lower than September’s 57.5.
S&P Global wrote that this marks the 28th consecutive month of improving sector health, with the latest reading still above the long-term average of 53.9.
A PMI reading above 50 indicates expansion in that sector, while below 50 indicates contraction.
— Lim Huijie
4 hours ago
Chinese consumers are now cautious: China Beige Book
Shehzad Kazi, managing director of China Beige Book, said Chinese consumers are now very cautious.
Qazi noted that Chinese consumers are cutting back on discretionary spending and sticking to truly essential goods, highlighting that industries such as food and apparel are faring better than luxury goods.
“Most of the revenge spending is in the travel and leisure sector, which may have splurged a little earlier this year, but the whole theory of revenge spending is very It was very unrealistic to be so optimistic.”
Qazi said Chinese policymakers appear confident of achieving the 5% growth target they set for this year, so there is not much pressure to introduce further stimulus into the economy.
“Unless the Chinese government reverses its decision to provide more household-focused stimulus, there aren’t really many stimulus options to boost consumer spending,” Qazi said.
— Shreyashi Sanyal
5 hours ago
DBS says India’s inflation will slow ahead of elections but rise soon after
DBS senior economist Radhika Rao said in a client note that past cycles have shown that inflation in India eases before election season and then rises quickly.
Rao said supply-side dynamics will be key this election season, noting that since the onset of the pandemic, trends have shifted higher due to more pronounced supply gaps and the vagaries of the weather.
Recently, it was reported that consumer prices exceeded 7% in July due to soaring tomato prices, but then returned to 5% by September.
India will hold the world’s largest general election in May 2024.
Mr. Rao also said that India’s revenue expenditure for the fiscal year will be affected by pressure from erratic rainfall affecting crop production, rising crude oil prices, rising pulses/cereals and broader targets, while maintaining capital expenditure plans. It said it faces pressure to support household purchasing power in the face of rising inflation.
“We hope that the central government will resist pressure to become fully populist and remain more committed to fiscal consolidation,” Rao said.
The Indian stock market attracted a whopping $19.6 billion in inflows into overseas portfolios in the first five months of this year, according to DBS data, driven by rapid growth and bullish views on growth prospects, earnings potential and financials. helped push the benchmark index into record territory. Expanding the individual investor base.
— Shreyashi Sanyal
6 hours ago
China’s manufacturing industry unexpectedly contracted in October, private survey reveals
China’s manufacturing activity recorded an unexpected contraction in October, revealed in a private investigation.
Caixin/S&P Global Manufacturing PMI fell to 49.5 in October from 50.6 in September. It was my first contraction in four months. Economists polled by Reuters had predicted a reading of 50.8.
A PMI reading below 50 indicates that the economy is contracting.
The survey reflects official statistics released by the country’s National Statistics Office on Tuesday.
— Shreyashi Sanyal
7 hours ago
The yen remains at its lowest level in over a year
Japan’s yen held its lowest value against the dollar in more than a year, a day after Japan’s central bank announced it would hold interest rates steady and make its yield curve control policy more flexible.
The yen fell 0.25%, trading at 151.29 yen, passing the 150 yen-to-the-dollar milestone. The current level is the lowest since late October 2022.
The Bank of Japan announced on Tuesday that it would keep its target level for 10-year government bond yields at 0%, but would adopt a cap of 1% “for reference only.”
— Shreyashi Sanyal
7 hours ago
South Korea’s exports increased for the first time in 13 months.Manufacturing activity continues to contract
I saw Korea Exports increase for the first time Exports increased by 5.1% in October compared to the same month last year, the 13th month of growth.
This is a reversal from the 4.4% decline seen in September and marks the first time since September 2022 that the country’s exports expanded year-on-year.
Separately, Korean factory activities The Purchasing Managers’ Index in October was 49.8, slightly worse than 49.9 in September.
— Lim Huijie
8 hours ago
After the Bank of Japan’s decision, the Japanese market rose about 2% in one day.
Japanese markets took a firmer turn, widening their gains from Tuesday, when the Bank of Japan increased flexibility in its yield curve control policy.
The Nikkei Stock Average rose 2.05%, supported by gains in distribution services and consumer durables stocks.
The top risers in the Nikkei Stock Average include automaker Subaru, investment broker Daiwa Securities, and Lasertec, which makes testing equipment for semiconductor companies.
— Lim Huijie
8 hours ago
CNBC Pro: Stagflation and the possibility of world war – Here’s how to trade now and ‘make money’, according to one hedge fund manager
Global markets may be plagued by stagflation and the possibility of world war, but some themes favor “making money” in the short and medium term, say the founders of US-based Livermore Partners. said David Neuhauser, CEO and Chief Investment Officer.
Hedge fund managers cite two asset classes and one theme in the stock market that they are currently positive about.
CNBC Pro subscribers can read more here.
— Amara Balakrishna
8 hours ago
CNBC Pro: ‘It’ll surprise you’: Old tech brands pivot to AI and this investor loves stocks
Traders should “reconsider” tech stocks tied to older corners of the industry, one investor says.
“This is one of my favorite names in the last few years,” Philippe Brancato, CEO of Ladenburg Thalmann Asset Management, told CNBC.
“They’re becoming an AI company. They’re becoming a cloud company… They’re expanding in all aspects of net-based cloud services to enhance any business,” he said.
He added that the company is a tech company currently trading at a valuation that is “much better” than its peers, and that “you’d be surprised what they can do over the next few years.”
CNBC Pro subscribers can read more here.
— Tan Weizhen
15 hours ago
JPMorgan strategist urges investors to remain defensive
Dubravko Lakos Bujas, chief global equity strategist at JPMorgan, said investors should be more defensive as the end of the year approaches.
The strategist said the impact of a delayed Federal Reserve rate hike will be more dramatic than traders currently expect, urging investors to hold on to cash and wait for the market to recover. He urged them to move to areas of strength. He supports not only Dividend Aristocrats but also public works and health care.
“I think it’s just a lag effect,” he told CNBC’s “Halftime Report” on Tuesday. “And this cycle, with the unprecedented injections due to COVID-19 and a relatively healthy starting point, it’s simply more than what we’re used to seeing in previous cycles. There can be long lags for things like balance sheets. ”
His year-end target of 4,200 for the S&P 500 is slightly higher than the index’s closing price on Monday, according to a CNBC Market Strategist survey.
— Sarah Min
14 hours ago
Tesla fell more than 20% in October, led Mag7’s decline
Tesla is down 20.5% in October and 33.5% from its 52-week high in mid-July, leading this month’s decline. Magnificent Seven A group of mega-cap tech stocks. Nvidia is down more than 7% in October and is down about 20% from its late August highs. Alphabet fell 5.8% in October and is down 12.7% from its mid-October high. All three stocks underperformed the S&P 500’s 2.5% decline.
Apple is down about 1% in October, but more than 14% below its mid-July high, while Metaplatform is little changed this month, but below its mid-October high hit just a few weeks ago. fell more than 9%.
Only two of the Mag 7 are up significantly this month. Microsoft is up about 6.8%, limiting its decline to about 8% from its mid-July highs. Amazon rose 4.4% in October, narrowing its losses from mid-September highs to about 9%.
See chart…
Tesla in October.
13 hours ago
Vanguard economist says Fed is on a ‘bumpy road’ to 2% inflation target
Joe Davis, Vanguard’s chief global economist, said the Fed would likely face a “bumpy road” to its 2% inflation target even if it decides to keep rates on hold at its November meeting. Ta.
“While inflationary pressures and broad macro trends are trending in the right direction, last week’s gross domestic product report and a still strong labor market challenge the Fed as it heads toward its 2% target,” Davis said in a written commentary. “It highlights the difficult road ahead.” “We believe that one to three more rate hikes will be needed to confidently reach the target over the next few years.”
Indeed, the economist said interest rates are likely to remain subdued. He also said the higher neutral rate policymakers would land on after the rate cut would be closer to 3.5% than the expected 2.5%.
“The market is finally recognizing this, and it was one of the reasons for some of the recent market volatility,” Davis wrote.
— Sarah Min