An hour ago
The yen weakens after the Bank of Japan holds interest rates, increasing flexibility in yield curve control
Japan’s yen weakened after the country’s central bank held interest rates steady and said it would allow more flexibility in yield curve control.
The Bank of Japan said the target level of the 10-year Japanese government bond yield would remain at 0%, but the 1% cap would serve as a “reference.”
The news sent the yen down nearly 0.6% against the dollar, briefly breaking the 150 per dollar barrier.
The benchmark Nikkei 225 reversed earlier declines, rising 0.7%, while the Topix gained 1.14%.
The BOJ also raised its inflation forecast for the next fiscal year and now expects the core consumer price index to rise 2.8%, above the 1.9% forecast three months ago.
—Shreyashi Sanyal
4 hours ago
Japan’s retail sales growth rate is falling after four consecutive months of acceleration
Japan’s retail sales rose 5.8% in September from a year earlier, slower growth compared to August’s 7% growth.
This is the first month the growth rate moderated after four straight months of accelerating growth, falling slightly below the 5.9% expected by economists polled by Portal.
Total commercial sales were 50.35 trillion yen ($337.17 billion) in September, the highest since March.
—Lim Hui Jie
An hour ago
HSBC says slower growth is a new normal for China
“China’s new normal will be lower growth than before,” said Fred Neumann, chief economist for Asia and co-head of global research at HSBC.
“We probably need to adjust our expectations about the cap on China’s growth,” Neumann told CNBC’s “Squawk Box Asia.”
HSBC now expects China’s economy to grow 4.9% this year and 4.6% in 2024. Neumann said that will likely be the growth range for China over the next few years and “as long as the real estate market continues to struggle, that’s probably the best thing it can do.”
Neumann said even though forecasts for China’s growth are more modest than before the pandemic, there are still some signs of economic recovery and growing areas of investment, including the electric vehicle sector.
Beijing’s current growth target is 5% for 2023. Data earlier in the day showed China’s manufacturing activity posted an unexpected decline in October.
—Shreyashi Sanyal
4 hours ago
CNBC Pro: Is Meta a Buy After Brutal Tech Selloff? That’s what the professionals say
Shares of Meta Platforms were hit by a broad tech sell-off last week – but several analysts remain bullish.
Meta stock fell 3.86% last week but traded over 2% higher on Monday.
“I think this technology is sold out here, [when] If we look back three or six months, I see this as more of a once-in-a-lifetime opportunity, not the right time [for it] “We need to go into hibernation,” Dan Ives of Wedbush Securities told CNBC on Thursday, amid the market downturn.
Other analysts also commented on the stock’s prospects.
CNBC Pro subscribers can read more here.
—Amala Balakrishner
7 hours ago
According to Barclays, Apollo Global and KKR are still on track to eventually join the S&P 500
Apollo Global Management and KKR & Co. are both still on track to eventually be added to the S&P 500 Index, according to a Barclays report to clients released on Monday, although their immediate prospects will be weighed down by the impact of higher Interest rates could affect both companies’ GAAP-reported earnings.
After Blackstone joined the S&P 500 in September, “the index inclusion narrative has become increasingly central to alternative asset managers,” analyst Benjamin Budish said in the note. The problem for Apollo and KKR, however, is that S&P requires profits measured using generally accepted accounting principles for the most recent quarter “and for the four preceding quarters in aggregate.”
But since interest rates rose in the third quarter, “this could result in unrealized losses on APO/KKR’s fixed income investments (primarily related to their insurance businesses),” Barclays argued, pointing out that GAAP earnings for both had been negative in the previous quarters. Yields on 10-year government bonds rose by similar amounts.
—Scott Schnipper, Michael Bloom
7 hours ago
Stocks make the biggest moves in extended trading
Check out the companies making headlines after hours.
Arista Networks – The cloud networking solutions company rose 6% in Monday’s trading session. Arista Networks reported earnings per share of $1.83, excluding items, on revenue of $1.51 billion. Analysts polled by FactSet had estimated earnings per share of $1.58 on revenue of $1.48 billion.
Lattice Semiconductor – The maker of low-power programmable chips was down about 16% in late trading. Lattice’s fourth-quarter revenue forecast of $166 million to $186 million fell short of analysts’ consensus estimate of $195.7 million, according to FactSet’s StreetAccount.
Wolfspeed – Shares of the chipmaker rose more than 11% following first-quarter results. The company reported a loss of 53 cents per share, while analysts were calling for 67 cents per share, per LSEG, formerly known as Refinitiv. Revenue fell short of estimates at $197 million, while analysts forecast $208 million.
The full list can be found here.
– Hakyung Kim
7 hours ago
Stock futures open flat on Monday
US stock futures were little changed on Monday evening.
The Dow Jones Industrial Average gained just 2 points or 0.01%. Futures tied to the S&P 500 fell slightly by 0.02%. Nasdaq 100 futures were unchanged.
– Hakyung Kim