Ed Yardeni says he sees another 75 basis points increase for the Fed in December
Ed Yardeni of Yardeni Research said Fed Chair Jerome Powell could signal another 75 basis point increase in December after an expected increase in November.
After the expected hike in December, Powell might hint that “the Fed funds rate is in a restricted area now, and they’re going to keep it there for a while to see how that affects the economy,” he said on CNBC’s Squawk Box Asia.
Yardeni said he believes the Fed wants to increase its increases rather than raise interest rates by 50 basis points, followed by two increases of 25 basis points.
– Abigail Ng
Hang Seng in Hong Kong was ‘ready for any kind of recovery’: Goldman Sachs
Timothy Mo, senior regional equity strategist for Asia Pacific at Goldman Sachs, said the Hang Seng’s rally this week was in part because it was “ready for any kind of recovery, rebound and short-covering.”
The two-day rally followed sharp declines after the conclusion of the 20th National Congress of the Communist Party of China.
Mo told CNBC that unverified social media posts about China likely to reopen in March next year also provided the catalyst for the leap. “Squawk Box Asia”.
“We’ll have to see if that holds up, and we’re still a bit skeptical about how high the market will go from here, until we get fairly concrete evidence that China is really heading towards reopening,” he added. .
– Abigail Ng
Hong Kong halts trade after typhoon warning
The Hong Kong Stock Exchange halted trading at 1:55 pm, after the Hong Kong Observatory Tropical Cyclone No. 8 issued a warning signal.
Commentary follows Hong Kong Stock Exchange guidelines websitewhich states that trading will end 15 minutes after the signal is issued.
“There will be no closing auction session for this trading day if trading is not resumed by 3:45 PM (for full-day trading) or 11:45 AM (for half-day trading),” the notice says. HKEx has confirmed that trading will not be extended.
– Jihee Lee, Kristen Wang
Casino stocks in Macau rose for the third consecutive session with the implementation of the online visa regime
Oil futures rose after industry report on falling US crude inventories
Oil futures rose on Wednesday after industry reports showed a decline in US crude inventories in the last week, Reuters Citing figures from the American Petroleum Institute on Tuesday.
Brent crude futures contracts A profit of $1.31, or 1.46%, to stand at $95.87 a barrel, while West Texas Intermediate US It rose 1.28% to $89.67 a barrel.
– Lee Ying Shan
South Korea’s stockpile and Japanese defense rise after North Korea’s missile barrage confirmed
Defense-related stocks listed in South Korea and Japan jumped after military authorities in Seoul confirmed that North Korea had launched more than 10 types of missiles off its east coast.
Authorities said the missile barrage included a single ballistic missile that landed in the free waters on the South Korean side of the Northern Limit Line, the de facto sea border separating the two Koreas – the first time since the Korean War.
Shares of defense companies Hanwha Aerospace jumped more than 5% in Korea’s morning trade, and shares of Victek Corp surged more than 7%.
Japan Defense shares were trading slightly higher with Hosuya Bayru Engineering approximately 1%.
– Jie Lee
BoJ board members discussed inflation, Kuroda hinted at a future policy shift
Policy board members agreed at the Bank of Japan’s latest meeting that it was appropriate to “persistently continue with broad-based monetary easing,” according to the Minute released Wednesday.
One member said the central bank’s stance on easing should continue even if inflation accelerates in the short term, as long as expectations remain low.
A few members said that the BOJ’s monetary policy targets price stability rather than foreign exchange rates, and that it should “carefully explain” the need to maintain the current position.
Some members said the expansion of inbound tourism consumption was one way to take advantage of the weak yen.
Separately, Bank of Japan Governor Haruhiko Kuroda It said He told Parliament that the yield curve control policy could be adjusted in the future, according to Reuters.
“If our 2% inflation target appears to be met, making yield curve control more flexible could become an option,” Kuroda was quoted as saying.
– Abigail Ng
South Korea’s inflation rose in October, more than estimates
South Korea’s consumer price index rose 5.7% in October from the same period last year, above the average estimate of 5.6% that a Reuters poll had forecast.
Data from Statistics Korea It showed that prices rose 0.3% compared to the previous month.
Electricity, gas and industry prices led the increase, and core inflation, which does not include food and oil prices, rose by 4.8% compared to last year.
– Jie Lee
CNBC Pro: Goldman’s Currie reveals ‘best’ hedge against inflation, rate hikes and geopolitical risks
There is one investment that can protect investors from rising interest rates, inflation and geopolitical risks, says Jeff Currie of Goldman Sachs.
Currie, global head of commodity research at Goldman Sachs, said it has a growth potential of 20-30% in the short term, with additional upside risks to the price target.
– Ganesh Rao
Major Chinese stocks rise amid unconfirmed posts to reopen debate
Stocks in Hong Kong and Mainland China rallied Tuesday after circulating unconfirmed reports about the formation of a committee to reopen discussions in China. Chinese Foreign Ministry spokesman Zhao Lijian said Reuters He was not aware of the situation.
Zhao was quoted as saying, “I don’t know where you got this information from. I don’t really know anything about this.”
Economist Hao Hong of the Grow Investment Group Tweet that the Rumors Committee is reviewing data from multiple countries It aims to reopen in March next year.
– Jie Lee
Stocks close lower
Stocks closed lower as markets braced for another Fed rate decision on Wednesday.
The Dow Jones Industrial Average fell 79.75 points, or 0.24%, to 32,653.20, while the S&P 500 fell 0.41% to 3,856.10. The Nasdaq Composite Index fell 0.89% to 10,890.85.
– Samantha Sobin
New York Live’s Goodwin says the Fed pivot is out of reach
Investors may be a little excited about possible changes from the Federal Reserve, according to Lauren Goodwin, economist and portfolio strategist at New York Life Investments.
Goodwin said in a note that she expects the Fed to rise by 0.75 percentage points on Wednesday and half a point in December, but the slowdown should not be seen as the start of a major turnaround from the central bank.
“A Fed pause is not the same as a pivot point,” Goodwin said in a statement. “Sure, deteriorating economic and credit conditions may turn the Fed modestly at some point, but it is unlikely that there will be a full pivot into accommodative territory in the year next”. note.
Goodwin noted that the first hikes in interest rates should now begin to have an impact across the broader economy, rather than just housing. However, the Fed will need several months of data to work its way around before changing course.
“At this point, with inflation as sudden as it has already been, the Fed will want to see clear signs of a reversal in wage growth before pivoting,” Goodwin said. “Recession should be seen as a base case rather than a risk.”
– Jesse Pound