44 minutes ago
Nikkei 225 briefly hits its 33-year high, its highest level since May 1990
Japan’s Nikkei 225 briefly touched its 33-year high on Monday morning, while the benchmark Nikkei 225 hit a high of 33,848.98 intraday.
This surpassed the previous high of 33,753 on March 7 and is the highest since May 1990.
However, the index fell soon after crossing the peak, recording a loss of 0.07% compared to the previous close.
An hour ago
China leaves key interest rates for one- and five-year loans unchanged in November
China’s central bank kept its key interest rates on one- and five-year loans at 3.45% and 4.2%, respectively, in November.
This is the third consecutive month that the People’s Bank of China has maintained the one-year LPR after cutting it to 3.45% from 3.55% in August.
The five-year LPR is now at 4.2% for five months in a row, having last been cut from 4.3% in June.
—Lim Hui Jie
An hour ago
Commerzbank assumes that China will keep key lending rates stable in November
Analysts at Commerzbank expect the People’s Bank of China to leave its key lending rates unchanged as it announces its rate decision later in the day.
The key one-year lending rate – the minimum interest rate for most household and business loans in China – is currently 3.45%. The benchmark five-year loan rate – the rate set for most mortgages – is 4.2%.
“Commercial banks are expected to keep the 1-year and 5-year LPRs unchanged at 3.45% and 4.2%, respectively,” said Tommy Wu, senior economist at Commerzbank.
“Although there have been no further MLF and LPR rate cuts since August, commercial banks have continued to reduce their effective lending rates for their customers, including mortgage rates, to accommodate the authorities’ recent easing of lending and real estate policies.”
—Shreyashi Sanyal
An hour ago
CNBC Pro: Is it time to buy the dip in Alibaba shares after the stock plunged? That’s what analysts say
Shares of Chinese e-commerce giant Alibaba slumped after the company abandoned plans to spin off and list its cloud computing business.
While investors largely reacted negatively to the company’s decision, some on Wall Street welcomed the move.
CNBC Pro subscribers can read more about what analysts from Morgan Stanley, JPMorgan, Bernstein and Barclays are saying about Alibaba here.
– Ganesh Rao
Fri, November 17, 2023, 3:14 pm EST
Oil rebounds 4% after selloff
Oil prices rebounded on Friday after a selloff earlier in the week pushed U.S. crude into a bear market.
The West Texas Intermediate December contract rose $2.99, or 4.10%, to $75.89 a barrel, while the January Brent contract rose $3.19, or 4.12%, to $80.61 a barrel Barrels rose.
The rebound came after a strong oil sell-off on Thursday that saw U.S. crude plunge into a bear market and fall 22% from its recent high in September.
Leo Mariani, senior research analyst at Roth MKM, described Friday’s rally as a “dead recovery after speculators liquidated.”
–Spencer Kimball
An hour ago
CNBC Pro: Will the Magnificent Seven have another good run in 2024? Morgan Stanley’s Mike Wilson comments
Much of the S&P 500’s gains this year can be attributed to the “Magnificent Seven” stocks.
The group includes Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla, some of which have benefited from the artificial intelligence craze
But can the Magnificent Seven continue to beat the market in 2024? Mike Wilson, chief US equity strategist at Morgan Stanley, weighs in – and reveals how to invest in 2024.
CNBC Pro subscribers can read more here.
– Weizhen Tan
Fri, November 17, 2023, 2:56 pm EST
Mention of “inflation” in earnings releases is at its lowest level in more than two years
Corporate executives are increasingly less concerned about inflation if earnings commentary is any guide.
With third-quarter earnings season almost complete, about 276 of the SP 500 companies reporting to date cited “inflation” as a significant factor in analyst calls, according to John Butters, senior earnings analyst at FactSet.
That’s the lowest level since the second quarter of 2021, before inflation hit its highest level since the early 1980s. Butters noted that financials and industrials were the sectors most frequently discussing the topic.
–Jeff Cox
Fri, November 17, 2023, 12:43 PM EST
A record number of options are expiring today, which could cause volatility in the market
A record number of options are expiring today, which could lead to some volatility in Friday’s trading session.
Goldman Sachs analyst John Marshall estimates the $2.2 trillion notional options exposure expires on Friday. This includes individual stock options with a par value of $440 billion.
“While today’s monthly options expiration will be the largest November expiration ever, it will be significantly smaller than the typical quarterly expirations of recent years,” the analyst wrote. “Consistent with recent quarters, there are unusually large open interest expiring around the 4000, 4500 and 5000 strikes in the SPX.”
—Lisa Kailai Han
Fri, November 17, 2023, 10:35 am EST
Wells Fargo said stocks rallied on weaker inflation data despite ongoing consumer risks
Stocks rallied this week, boosted by weaker-than-expected inflation data and a pause in the escalation of global tensions, according to Wells Fargo.
All 11 sectors in the S&P 500 rose except for the energy sector, which was weighed down by falling crude oil prices.
“The ‘don’t fight the Fed’ mantra and the (likely) sustained, productivity-driven margin improvements we saw in the third quarter are, in our view, two of the stronger bullish signs heading into 2024,” wrote analyst Christopher Harvey. “While we continue to favor super caps in the near term, we recognize that with the index up 31% YTD (SPX: +17%), some profit-taking/decreases are to be expected.”
—Lisa Kailai Han