Japan markets, Fed December minutes, China in losses

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By journalsofus.com

4 hours ago

Japan to approve reserve fund to compensate for damage caused by New Year’s Day earthquake

Prime Minister Fumio Kishida said Japan’s Cabinet would approve the use of its reserve funds to cover damage caused by the earthquake that struck the Noto Peninsula in Ishikawa Prefecture on New Year’s Day.

Reuters reported that the amount being considered at next Tuesday’s meeting would likely be doubled
About 2 billion yen ($13.95 million) was used in previous similar disasters.

Reserve funds are for the Government of Japan to deal with unexpected expenditure requirements, and require Cabinet approval before they can be used.

– Lim Hui Ji, Reuters

7 hours ago

Caixin China December services PMI rises at fastest pace since July

Services activity in China continued to rise in December, with foreign demand for the country’s services also rising, a private survey showed.

The Caixin China General Services Business Activity Index rose to 52.9 in December from 51.5 in November, rising for the 12th consecutive month. The survey also said that the growth rate was the fastest since July.

According to the survey report, “Growth momentum in China’s services sector continued again at the end of 2023.” “There was a subtle increase in employment as businesses exercised caution in hiring. But the modest expansion was enough to absorb new orders, leaving the backlog unchanged.”

A PMI reading above 50 indicates an expansion in activity, while a reading below that level indicates a contraction.

-Shreyashi Sanyal

8 hours ago

Hong Kong’s business activity improves at fastest pace since April

Business activity in Hong Kong’s private sector improved at the fastest pace since April, according to S&P Global.

The city’s purchasing managers’ index rose to 51.3 in December, higher than the 50.1 seen in November.

The S&P Global report said new business and output growth returned to Hong Kong, although overseas demand remained subdued.

“The improvement in overall sales nevertheless supported rapid employment growth, while companies also increased their inventory holdings amid an easing of cost pressures,” the report said.

– Lim Hui Ji

9 hours ago

Japan Airlines shares fall more than 2% as markets react to the clash

Japan Airlines shares fell as much as 2% on Thursday before recovering slightly after Japanese markets resumed trading and the reaction to the collision of a JAL flight at Tokyo’s Haneda Airport on January 2.

The accident occurred when JAL Flight 516 collided with a Japan Coast Guard aircraft, and five of the six crew members on board the Coast Guard aircraft lost their lives.

In a regulatory filing to the Japan Exchange on Thursday, JAL said the estimated loss from the plane collision was 15 billion yen ($105 million), which would be covered by insurance.

9 hours ago

Australian shares continue to fall, reach two-week low

Australian shares continued to slide after hitting record highs earlier this week, falling to a two-week low on Thursday.

The S&P/ASX 200 fell 0.53% to trade near 7,495 – its lowest level since Dec. 19 – retreating from an all-time high of 7,632.70 hit on Tuesday.

Australian markets fell amid gloom in the global environment after minutes of the US Federal Reserve meeting in December suggested an interest rate cut was likely in 2024, but there was little clarity on when that might happen. .

Bets that the Reserve Bank of Australia will no longer raise rates have boosted the country’s stock market – but those hopes have been partly driven by the Fed’s dovish stance.

The Australian dollar strengthened 0.1% against the US dollar in early trading.

-Shreyashi Sanyal

10 hours ago

CNBC Pro: These 9 stocks are cheaper than the S&P 500 – and poised for big earnings growth in 2024

Stocks soared in 2023 as investors were excited by the story of an end to rate hikes in 2024.

Tech stocks led the way on a surge in trends like artificial intelligence.

The S&P 500 gained 24%, while the tech-heavy Nasdaq Composite finished 2023 up 43.4% for its best year since 2020.

Still, some stocks are trading at cheap valuations compared to the broader S&P 500, and analysts expect strong earnings growth in 2024.

CNBC Pro subscribers can read about them here.

– Weizen Tan

10 hours ago

CNBC Pro: Deutsche Bank names the stock that will be the ‘last man in’ in autonomous driving

Creating the technology that powers driverless cars is proving incredibly difficult for car makers.

Recently, Cruise, GM’s robotaxi service, was shut down in San Francisco over safety issues.

Given such a backdrop, Deutsche Bank has named a stock a “rare secular growth story” in the sector as the company’s technology could find a buyer among any number of global automakers seeking to add self-driving capabilities. Is.

CNBC Pro subscribers can read more here.

-Ganesh Rao

13 hours ago

Oil rises more than 3% as US warns Houthis, OPEC pledges unity

Oil prices rose more than 3% on Wednesday as the US warned Houthi militants against attacks in the Red Sea and OPEC pledged unity to support market stability.

Libya’s Sharara oil field was also shut down due to the protests, two engineers told Reuters.

The West Texas Intermediate contract for February rose $2.32, or 3.29%, to settle at $72.70 a barrel. The Brent contract for March settled at $78.25 a barrel, up $2.36, or 3.11%.

– Spencer Kimball

15 hours ago

Fed minutes show rate cut likely, but path still uncertain

Minutes of the Federal Reserve’s December meeting showed that, while the central bank sees rates falling in 2024, it considers its current policy stance appropriate.

The document states, “In their presented projections, nearly all participants indicated that, reflecting the improvement in their inflation outlook, their baseline assumptions implied that a lower target range for the federal funds rate would be appropriate through the end of 2024.” “

It also added: “Participants generally emphasized the importance of maintaining a cautious and data-dependent approach to monetary policy decision-making and confirmed that it would be appropriate to maintain a restrictive stance for policy for some time when Unless inflation moves markedly downwards is the objective of the Committee.”

– Jeff Cox

19 hours ago

10-year Treasury yield ticks above 4%

The benchmark 10-year Treasury yield rose above 4% on Wednesday, reversing a decline seen through late 2023.

See the list…

up from 4% 10 years ago

The move weighed on tech stocks and the S&P 500 real estate sector. This also comes ahead of the minutes of the Federal Reserve’s December meeting.

– Fred Imbert

18 hours ago

Job opportunities close to expectations; manufacturing gauge tilts upward

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 Openings and Labor Turnover survey showed 8.79 million employment listings, in line with Dow Jones’ estimate of 8.8 million. The sum of layoffs and appointments reduced.

In the manufacturing sector, the ISM Manufacturing report recorded a reading of 47.4 for December, slightly above the 47.2 estimate and better than 46.7 in November. This number reflects the percentage of businesses reporting expansion for the month, so anything below 50 represents contraction.

-Jeff Cox

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