Asia-Pacific markets, China trade, Australia CPI, RBA

Reserve Bank of Australia says ‘we’ve done enough and now we need to pause’, AMP says daily newspaper not to continue rate hikes after RBA’s decision to raise cash rate by 25 basis points carries the risk of pushing the economy into recession. .

Gareth Aird of the Commonwealth Bank of Australia said in a separate memo that he expected another rate hike.

“We expect another 25bp rate hike at the April Board meeting, with the cash rate peaking at 3.85%.”

The February Labor Force Survey, due next week, will be a key piece of data the RBA will assess ahead of its meeting.

— Lee Yingxiang

According to CIO Peter Toogood, the recent rally in stocks has been a “suction cup rally.”

The CIO of U.K.-based financial services firm Enbarc Group said he expects U.S. stocks to fall after the S&P 500 rose 14% since early October.

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— Ganesh Rao

The Reserve Bank of Australia, as expected, raised the cash rate by 25 basis points to 3.60%. release by the central bank.

“Global inflation remains very high. Service price inflation remains high in many countries but moderates headlines,” the RBA said in a release.

Immediately after the decision, the Australian dollar edged higher against the US dollar to 0.6725.

— Lee Ji-hye

According to a report by salary database Nodeflair and venture capital firm Iterative, wages for most tech jobs will jump in 2022, even as hiring slows as companies lay off workers.

Blockchain, mobile, and site reliability engineers saw the highest wage increases, while software engineer salaries hit record highs. Tech Salary Report 2023 Indicated.

Most Companies Pay Higher Compensation — More than 10 — Higher than average wages, with 40% paying 20% ​​higher than average.

“The outlook for the technology talent and recruitment market in 2023 points to continued demand for technology talent, albeit at a slower pace than in previous years,” the report said.

— Sheila Chen

Philippines Annual Inflation Data 8.6% YoY increase in Februaryshowing signs of easing slightly from an 8.7% reading in January, but remains elevated.

The figure was below Reuters’ forecast of an 8.8% rise as inflation in the transport sector was relatively low. Philippine Bureau of Statistics report.

Food, alcoholic beverages and tobacco continue to be the main drivers of high inflation.

Excluding volatile energy and food prices, the country’s core inflation rose to 7.8% in February compared to 7.4% in January.

— Lee Yingxiang

Major cryptocurrencies Bitcoin and Ether fell in early Asian trading after news of a possible bankruptcy of crypto-friendly bank Silvergate Capital and the shutdown of the crypto payment network.

Bitcoin fell 0.18% to trade at $22,421.4, while Ether fell 0.22% to $1,564.65, according to CoinDesk data.

Silvergate’s stock plunged 60% last week after delaying the filing of its annual report due to financial problems associated with the bankruptcy of former client FTX.

— Li Yingxiang

Another bull market or another bear market rally? Veteran investor Michael Landsberg is in the latter camp.

“Patience and careful individual stock selection will be key going forward,” says veteran investor Michael Landsberg, pointing to some opportunities that still exist in the market.

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— Xavier Ong

Australia’s trade surplus narrowed to A$11.7 billion in January, down from the previous month.

Imports of goods and services rose 5% after rising 1% in December. Meanwhile, exports in January rose 1%, up from his 1% decline in the previous quarter.

The Australian dollar rose slightly against the dollar to 0.6729.

The Reserve Bank of Australia is expected to raise the overnight cash rate by 25 basis points to 3.6%, according to economists polled by Reuters.

This is the highest interest rate since June 2012, when the Australian cash rate was 3.75%.

Matt Simpson, senior market analyst at City Index, said the tone of the central bank’s statement could determine how much the RBA will raise interest rates to keep inflation in check.

Pointing to the RBA’s statement that further rate hikes are needed “over the coming months,” Simpson said, “Adjusting the wording of this sentence could result in one or two more rate hikes from here. ‘ said.

“A further rise over the next few months suggests another round of rate hikes, with a final rate of 3.85%,” he said.

— Lee Ji-hye

Apple has a huge amount of influence in the S&P 500 on Monday. The reason is — Apple is so big (with his $2.47 trillion market cap, Apple is the single largest stock, and his 6.82% of the overall index).

In Monday’s midnight trading, Apple alone added about 1 point to the S&P 500’s gains. Together with Microsoft, Amazon and Alphabet, we added almost 2 points for all four.

Apple extended its latest rally for three days, during which it gained about $11 per share, or 7.6%.

A new analyst at Goldman Sachs began investigating Apple on Monday, saying with a purchase rating and price target of $199, Apple could get a big boost from its services business.

Apple is 13% below its 52-week high on March 30, 2022, but 26% above its 52-week low on January 3, 2023, according to FactSet data.

Month-to-date, Apple is up about 5.8%, up just over 20% year-to-date. The iPhone maker is trading about 10% above his 50-day moving average and boasts a $169 consensus price target among analysts.

— Scott Schnipper

Morgan Stanley has replaced Tesla with Ferrari as the top pick for the entire company.

Analyst Adam Jonas has raised his price target on Ferrari by $30 to $310, suggesting a 14.2% gain over the next year. He said the automaker’s defenses and hard-to-replicate luxury brands will be assets in a changing economic environment.

“We believe RACE is the company best positioned in our coverage in a highly uncertain macroeconomic and geopolitical tape,” he said in a note to customers on Monday. In addition to its strong fundamentals, we believe RACE has the tools to extract both growth and downside protection amid highly divergent macro results.”

He also said the stock “avoids much of the EV hype and EV risk”. He said there are opportunities that are being evaluated.

Ferrari shares rose about 1%, while Tesla shares fell about 1%.

— Alex Haring

Tesla shares fell 1% after the electric car maker cut prices on two of the most expensive models in the US to improve demand.

After the price cut, the Tesla Model S starts at $89,990, according to Tesla’s website. This is about 5% lower than the previous price. The Model X, on the other hand, starts at $99,990 with a 9% cost reduction.

— Ryan Braun, Samantha Soobin