Asian markets, US FOMC minutes, PMI, RBNZ, RBA minutes, Australian wage prices

Asian markets, US FOMC minutes, PMI, RBNZ, RBA minutes, Australian wage prices

An hour ago

CNBC Pro: Not sure about the market rally? The strategist chooses 3 actions to remain “defensively offensive”

Stock markets have rallied this year, but market watchers are unsure whether this is just another bearish rally or the start of a new bull market.

Against this backdrop, Ghosh said investors should look to be “almost defensively offensive” and named three stocks he recommends.

Pro subscribers can learn more here.

— Zavier Ong

An hour ago

China expected to largely maintain prime lending rates

The People’s Bank of China is largely unlikely to change its prime rates on 1-year and 5-year loans later today, according to a Reuters poll.

21 of its 27 respondents expected the central bank to hold rates steady, while 6 of its economists called for a marginal cut in the 5-year rate.

Economists pointed to the latest government data showing new lending hit a record 4.9 trillion yuan ($713 billion) in January.

A recent statement from the central bank also reiterated its commitment to stepping up financial support, but emphasizing targeted measures.

An hour ago

CNBC Pro: Goldman Names 2 Global Stocks to Play ‘Clean Hydrogen Revolution’, Giving 50% Rise

The clean hydrogen “revolution” is gaining momentum, according to investment bank Goldman Sachs, which pointed to a few factors behind the boom.

He named these stocks listed as long to play this theme.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

An hour ago

Week ahead: FOMC minutes, RBA, Bank of Korea, Xi speech

Here are the main events that investors in the Asia-Pacific region will be watching this week.

The U.S. Federal Open Market Committee will release the minutes of its last meeting which ends February 1 later this week.

On Monday, China will publish its prime rates on 1-year and 5-year loans for February. Malaysia will release its trade data later today.

On Tuesday, private polls will release readings of Australia’s and Japan’s Purchasing Managers’ Indexes. The United States will also release its PMI and New Zealand is expected to release its producer price index for the fourth quarter.

Investors will also be closely watching the minutes of the Reserve Bank of Australia’s latest rate decision meeting.

Japan will also release its producer price index on Wednesday. Australia’s composite leading index for January and the national wage price index for the fourth quarter will also be released that day.

New Zealand will also release its January trade balance on Wednesday.

The Bank of Korea will announce its rate decision on Thursday morning. Economists polled by Reuters expect the central bank to pause and leave its benchmark interest rate unchanged. Singapore’s consumer price index for January will also be released.

According to Reuters, Chinese President Xi Jinping will deliver a “peace speech” on the first anniversary of Russia’s invasion of Ukraine.

—Jihye Lee

Fri, Feb 17, 2023 10:12 a.m. EST

Leading indicators down 0.3%, still pointing to a recession ahead

Forward-looking economic data still points to a coming recession, but perhaps less so, the Conference Board reported on Friday.

The board’s leading economic index fell 0.3%, in line with market expectations and at least in relative terms better than the 0.8% decline in December. On a six-month basis, this lowers the LEI by 3.6%, compared to the contraction of 2.4% in the previous period.

“While the LEI continues to signal a near-term recession, labor market indicators – including employment and personal income – remain strong so far,” said Ataman Ozyildirim, Senior Director of the Conference Board Economics.

“The Conference Board still expects high inflation, rising interest rates and shrinking consumer spending to tip the U.S. economy into recession in 2023,” he added.

—Jeff Cox

Fri Feb 17 2023 2:28 PM EST

Lack of market reaction to inflation data could suggest change

“Markets have stabilized after an impressive start to the year, although the lack of reaction to inflation data or the ‘good news is bad news’ mentality suggest a dramatic change in the complexion of the markets from than last year,” Mark Hackett, director of investment research at Nationwide, said in a Friday note.

He added that Friday’s trading will determine the general direction of the week – the S&P 500 is relatively flat on the week.

“Leadership has shifted to risk asset classes, with technology and small caps leading the way, and the Dow Jones has underperformed the S&P 500 this year by the biggest gap since 1934,” he said. he declared. “Bond investors remain reactive, however, with the 10-year Treasury yield rising 0.16% this week to 3.90%, the highest level since November.”

This change is good news for bulls, who see a narrative supported by a stronger than expected economy and a market that is less responsive to the economy, inflation data or rising rates.

—Carmen Reinicke

Fri Feb 17 2023 10:21 AM EST

Fed’s Bowman says ‘much more progress’ needed on inflation

Federal Reserve Governor Michelle Bowman said Friday there was still a lot of work to do before policymakers could feel they had inflation under control.

“I think there’s a long way to go before we hit our 2% inflation target and I think we’ll have to keep raising the fed funds rate until we see a lot more progress. about it,” Bowman said during an appearance in Tennessee. , according to Reuters

The remarks come a day after regional chairmen James Bullard of St. Louis and Loretta Mester of Cleveland said they had advocated a half-point rate hike at the last meeting, rather than the move. a quarter point finally approved.

This week’s data indicated that after declining in recent months, inflation is on the rise again.

“We saw progress in bringing inflation down late last year, but some of the data we see early this year is not tracking a steady decline in inflation in a way that I ‘d like to see,” Bowman said.

—Jeff Cox

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