Japan's factory activity shrank for the seventh consecutive day in December
Japan's manufacturing activity contracted for the seventh straight month in December, according to a private survey.
A preliminary reading of the au Jibun Bank Japan manufacturing purchasing managers' index fell to 47.7 in December from 48.3 in November, signaling the fastest deterioration in manufacturing conditions in a decade.
A reading below 50 indicates a contraction.
However, au Jibun Bank's flash services PMI was 52.0 in December compared to 50.8 in November, the fastest increase in the three months.
According to the survey, growth in the services sector remained weaker than the average for the whole of 2023. Total new business grew slightly faster but moderately in December, despite a slight decline in new export sales.
—Shreyashi Sanyal
Australia's private activity contracts slow in December: Judo Bank
Australian private sector activity remained in contraction territory in December, but contracted at a weaker pace, according to flash estimates from Judo Bank.
The country's composite purchasing managers' index came in at 47.4, compared with the 27-month low of 46.2 in November.
Australia's manufacturing PMI was 47.8, up slightly from 47.7 the previous month, while the services PMI was 47.6, a slower rate of contraction from 46.0 in November.
The bank said demand conditions remained under pressure in December but input cost inflation eased. Overall employment also continued to grow and companies' optimism improved from November onwards.
—Lim Hui Jie
CNBC Pro: Solar stocks have had a difficult year. But a fund manager loves a long-term investment
Macroeconomic uncertainty and rising interest rates may have hurt the performance of solar stocks this year – but one fund manager remains optimistic about the sector's long-term prospects.
“We really like solar energy because solar systems can be built anywhere – unlike wind turbines. But they are an interest rate problem at the moment; “So when interest rates fall – which is the case right now – solar companies can do very well,” Steven Glass, managing director and investment analyst at Australia-headquartered Pella Funds, told CNBC Pro.
And for him a share is a long-term investment.
CNBC Pro subscribers can read more here.
—Amala Balakrishner
CNBC Pro: Goldman added these stocks to its “conviction” lists, giving a major global technology stock 100% upside potential
Goldman Sachs recently added a number of stocks to its top pick lists.
Called the Conviction List – Directors' Cut, the lists cover the United States, Europe and the Asia-Pacific region.
Here are four of the new additions.
CNBC Pro subscribers can read more here.
– Weizhen Tan
“Powell breaks out punch early at the Christmas party,” says Deutsche Bank
Federal Reserve Chairman Jerome Powell's dovish tone on Wednesday increases the likelihood of interest rate cuts coming sooner than some expected and increases the chances of a soft landing if inflation continues to ease, Deutsche Bank said.
“While we continue to believe that the first rate cut will likely occur in June 2024 and that the Fed will cut rates by 175 basis points next year, today's meeting suggests that dovish monetary policy threatens this expectation,” Matthew wrote Luzzetti, chief U.S. economist, said Wednesday in a note titled “December FOMC: Powell breaks out punch early at Christmas party.”
“We see an increased risk that rate cuts could come as early as March,” Luzzetti continued. “Easing monetary policy sooner as inflation declines more sharply would improve the prospects for a soft landing.”
In fact, the CME FedWatch Tool shows that markets are currently pricing in about a 72% chance that the Fed will cut interest rates by 0.25 percentage points in March. That's up from 65% on Wednesday.
—Sarah Min, Michael Bloom
Big tech companies underperform on Thursday
Big tech stocks underperformed the market and slowly fell into negative territory amid broader market gains.
Microsoft and Netflix fell around 2.3% on Thursday afternoon. Amazon and Alphabet fell 1.1% and 0.9%, respectively. Apple and Meta Platforms also saw their shares fall by 0.2% and 0.5%, respectively.
Meanwhile, the S&P 500 rose 0.2%, while the Nasdaq Composite edged up 0.1%.
– Hakyung Kim
Oil settles 3% higher on weaker dollar, demand outlook raised
Oil prices settled 3% higher on Thursday on a weaker dollar and a slight improvement in demand growth in 2024.
The January West Texas Intermediate contract rose $2.11, or 3.04%, to close at $71.58 a barrel, while the February Brent contract rose $2.35, or 3.16%, to close at 76 closed at $.61 per barrel.
The U.S. dollar also fell to a four-month low on Thursday after the Federal Reserve signaled it would end interest rate hikes. A weaker dollar makes oil cheaper, which can increase demand.
And the International Energy Agency said Thursday that global oil demand would rise by 1.1 million barrels per day in 2024, a slight increase from its previous forecast of 930,000 barrels per day.
–Spencer Kimball
Yield on 10-year government bonds falls below 4%
The benchmark interest rate fell below 4% for the first time since August as traders bet on Fed rate cuts in 2024. The 10-year bond was last trading at about 3.95%.
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10-year US Treasury bond yield