4 minutes ago
Gold prices could hit $2,600 and stay at record highs
Gold prices have more room to rise as global banks struggle and investors await the US Federal Reserve’s rate decision, which may hit a record as high as $2,600 an ounce.
The metal’s prices broke through $2,000 on Monday, marking its highest level since March 2022. Its all-time high was $2,075 in August 2020, data from Refinitiv showed.
“An earlier pivot by the Fed on rate hikes is likely to cause a further rise in gold prices due to a possible further decline in the US dollar and bond yields,” market analyst Tina Teng of CMC, who expects gold prices to range between $2,500 and $2,600 an ounce, told CNBC .
Gold prices are also expected to remain at record highs, Fitch said.
“We believe increasing global financial instability is likely to propel gold prices to an all-time high of $2,075 in the coming weeks,” Fitch Solutions wrote in a report from the 20 pre-Covid level.”
– Lee Ying Shan
3 hours ago
Cyclical healthcare and consumption stocks lead Hang Seng higher
The Hang Seng index led gains in the Asia-Pacific region on Wednesday, driven by cyclical healthcare and consumer staples stocks.
Shares of Geely saw the biggest moves, up 7.16% after the automaker posted full-year 2022 revenue growth of 45.6% year-over-year and earnings growth of 8.5%.
Wuxi Biologics and Country Garden Holdings were also among the top gainers, up 4.68% and 5.43%, respectively.
— Lim Hui Jie
3 hours ago
It will be “very difficult” for VCs and startups to find another bank like SVB: Race Capital
It will be very difficult for venture capital firms and startups to find another bank as startup-friendly as the ousted Silicon Valley Bank, said US venture capital firm Race Capital.
“SVB was not just another bank around the corner. They really were the bedrock of Silicon Valley,” Edith Yeung, general partner at Race Capital, told CNBC’s “Squawk Box Asia” on Wednesday.
SVB was Race Capital’s main bank and two of its portfolio companies had 100% funds in SVB, Yeung said.
“If you’re a startup founder, you might be able to find another bank to hold your money,” she said.
“But going forward, it’s definitely very, very difficult to find a bank that’s so startup-friendly and able to provide venture debt to lots and lots of startups. This applies to startups in Silicon Valley and China,” she added.
– Sheila Chiang
3 hours ago
CNBC Pro: A longtime bear “sneaks back” into tech — and has some tips for playing it
Tech investor Paul Meeks has been bearish on technology for some time, but is finally starting to warm to the sector.
“I’m sneaking back into the sector after long arguing for an underweight position in it,” he told CNBC on Friday. He joins a chorus of investors who have become more bullish on the sector in recent weeks.
Pro subscribers can read more about Meeks’ top stock picks here.
– Zavier Ong
4 hours ago
China will use its position to benefit from a vulnerable Russia, analysts say
China’s President Xi Jinping will soon conclude his visit to Russia, and analysts argue that Beijing will use its strong position to benefit from President Vladimir Putin.
“Putin is weak and comes into these negotiations out of real vulnerability,” said Timothy Ash, emerging markets strategist at BlueBay Asset Management, adding he wonders “what price Xi will fetch for rescuing Putin… he needs some of it.” have .”
Overall, China has the upper hand economically over Russia, said Alicja Bachulska, policy fellow at the European Council on Foreign Relations. “If China supports Russia in a more substantial way, this will go further,” she added.
Read the whole story here.
— Yeo Boon Ping, Holly Ellyatt
4 hours ago
CNBC Pro: Morgan Stanley is “extremely bullish” on Asian and emerging-market stocks.
Morgan Stanley says it’s “time to get bullish on growth stocks in Asia and emerging markets.”
While markets are pricing in a rate hike at the Federal Reserve meeting in March, many also expect rate cuts later this year. Easing financial conditions should benefit growth stocks, strategists said.
CNBC Pro subscribers can read more here.
– Jihye Lee, Christine Wang
4 hours ago
Nike says sales in China fell 8% in the holiday quarter
Nike reported that sales in China fell 8% during the holiday quarter even as the country ended its zero-Covid policy.
The sportswear giant reported Greater China sales totaled $1.99 billion for the quarter ended Feb. 28. That’s less than Wall Street’s expectations of $2.09 billion, according to StreetAccount consensus estimates.
Still, Nike CEO John Donahoe remained upbeat, saying the company saw a “real pick-up” in growth in the second month of the quarter as Covid controls eased.
“The fundamentals of this market are good, right? It’s a very big market that’s growing. Sport and wellness are an important trend there and provide a boost. There is a desire for innovation and style. And the key to succeeding in this market is simply put: having great innovations and connecting with Chinese consumers in locally relevant ways,” said Donahoe.
Nike shares are down 2.25% in after-hours trading.
— Christine Wang, Gabrielle Fonrouge
5 hours before
Topix jumps as much as 2% in early trade, led by financials
Other leading names in the index included carmaker Toyota, investment manager Softbank and technology group Sony.
— Lim Hui Jie
4 hours ago
CNBC Pro: Exxon vs. Chevron? Goldman Sachs reveals its favorite – and other energy tips
18 hours ago
The government could secure more deposits if needed, Treasury Secretary Yellen says
Treasury Secretary Janet Yellen said on Tuesday that while authorities believe they have taken sufficient action to stem liquidity problems in the banking sector, the government stands ready to guarantee even more deposits if the banking crisis worsens.
“The steps we have taken were not focused on helping specific banks or classes of banks. Our intervention was necessary to protect the broader US banking system,” she said in a remark prepared for a speech before the American Bankers Association. “And similar measures might be warranted if smaller institutions suffer from deposit runs that pose a risk of contagion.”
– Tanaya Macheel, Jeff Cox
15 hours ago
First Republic leads regional bank stocks rally
First Republic shares are up more than 38% Tuesday morning. The move marks a trend reversal for the bank’s losses yesterday after Standard & Poor’s downgraded its credit rating again over the weekend. Investors are upbeat after assurances from Janet Yellen early Tuesday.
Other US regional bank stocks continued to trade in the green. PacWest Bancorp shares are up about 15.7%. Zions Bancorp and KeyCorp were up 5.3% and 5.8%, respectively. New York Community Bancorp was up 1.8% and Fifth Third Bancorp was up 3.8%.
—Pia Singh
11 hours ago
Big bank CEOs meet in Washington to discuss First Republic, Portal reports
CEOs of major banks, including JPMorgan’s Jamie Dimon and Bank of America’s Brian Moynihan, are meeting in Washington on Tuesday for a two-day scheduled meeting, Portal reported, citing sources familiar with the matter.
First Republic Bank, which has been under pressure due to the high percentage of uninsured deposits, will be discussed at the meeting, Portal reported.
— Yun-Li
14 hours ago
According to Insight Investment, the Fed’s 2% inflation target is “unlikely” to be met in 2023
As the Federal Reserve plans to announce its latest monetary policy decision on Wednesday, Insight Investment expects inflation to remain high in 2023.
“The 2% inflation target in 2023 is unlikely to be met, but there is some hope that we will see a more normal inflation environment by 2024,” wrote Brendan Murphy, head of core fixed income, North America, in a statement from Tuesday.
“As the lagged effect of the Fed’s interest rate hike along with the recent tightening of financial conditions linked to banking sector worries play out on the economy, the impact is likely to be disinflationary. The same conditions pose many risks to growth,” Murphy added.
Insight Investment expects the central bank to hike interest rates by 25 basis points on Wednesday, but added that “recent market volatility could be an opportunity for them to pause at this meeting.”
“The case for a pause is strong as another 25 basis point hike could be seen as contributing to market volatility and financial instability,” Murphy said.
“However, failing to reach 25 basis points could lead some to question the Fed’s determination to lower inflation, which could create a whole new set of problems. A pause could result in an easing of financial conditions that work against their inflation targets.”
— Hakyung Kim