Before an hour
Japan’s Nikkei 225 tops 33,000 points with chip stocks and autos leading gains
Japan’s Nikkei 225 crossed 33,000 points for the first time since July 1990, breaching an important psychological level as Japanese stocks continue their uptrend.
Battery maker GS Yuasa rose 5.97%, topping the index, and chipmaker Renesas Electronics rose 5.88%.
SoftBank Group was up 5.59% and Toyota Motor was up more than 5%, while Mazda was up 4.12%.
2 hours ago
The People’s Bank of China cuts the 7-day reverse repo rate to 1.9%
The People’s Bank of China cut its seven-day reverse repo rate by 10 basis points from 2% to 1.9%, injecting 2 billion Chinese yuan ($279.97 million) through its seven-day repo operations. A repurchase agreement (repo) is a type of short-term lending rate.
This is the first such move by the central bank since August and follows the country’s largest banks cutting deposit rates last week, signaling that further monetary easing is imminent.
The Chinese onshore yuan weakened 0.25% to 7.1618 against the US dollar shortly after Tuesday’s move, remaining at its weakest level since November.
– Jihye Lee
19 minutes ago
According to an asset management firm, India is a “bright spot” in terms of global growth rates.
Michael Yoshikami, founder of Destination Wealth Management, says that’s largely because tech companies are “making strides in terms of manufacturing in India.”
– Lee Ying Shan
4 hours ago
Samsung and SK Hynix are up on the report that the US is allowing Korean and Taiwanese chipmakers to stay in China
22 minutes ago
Cargo is moving reasonably well despite local labor shortages, the Port of Los Angeles says
Gene Seroka, executive director of the seaport, says the cargo is moving “pretty smoothly,” though some truckers and port customers are experiencing delays.
– Audrey Wan
4 hours ago
India’s inflation rate is slowing to its lowest level since January 2021
India’s consumer price index rose 4.25% yoy in May, marking the lowest rate of inflation since January 2021.
That was down from April’s reading of 4.7% and also lower than the 4.42% expected by economists polled by Portal.
Government data showed that clothing and footwear prices posted the highest rise of 6.64% in May, followed by house prices, which rose 4.84%.
— Lim Hui Jie
5 hours before
CNBC Pro: Nervous about high interest rates? Analysts like these cash-rich stocks, which offer nearly 80% upside potential
Analysts have singled out one group of companies that will benefit if interest rates last longer: those with plenty of cash and strong balance sheets.
Although the US Federal Reserve is expected to suspend interest rate hikes this week, there are fears it will resume them afterwards. That’s because inflation is more stubborn than it looks and the labor market remains tight.
CNBC Pro searched the S&P 500 and MSCI World indices for such well-funded stocks. One appeared on the screen with nearly 80% upside potential and two other semiconductor stocks that are currently popular with investors also appeared.
CNBC Pro subscribers can read more here.
– Wheat Tan
22 minutes ago
Bain Capital outlines its offer to take Chindata private
Bain Capital’s Jonathan Zhu discusses the company’s bid to privatize the nearly $3 billion Chinese data center operator.
– Sheila Chiang
5 hours before
CNBC Pro: Morgan Stanley loves these 5 global AI chip stocks that could take over Nvidia’s market share
Nvidia, a dominant player in the artificial intelligence market, may face increasing competition from custom chip designers in the near future, according to Morgan Stanley.
“Budget costs and power requirements are, in our view, the top two constraint for future AI computing,” Morgan Stanley analysts, led by Charlie Chan, said in a June 11 note to clients.
“As a result, we anticipate that the future will see increasingly more power-efficient and cost-effective custom AI chip designs that will match or even outpace the growth of NVIDIA and AMD’s general-purpose GPUs.”
The investment bank is “overweight” in five global stocks that could benefit from this trend.
CNBC Pro subscribers can read more here.
– Ganesh Rao
22 minutes ago
DBS discusses the launch of its multi-family platform
Lee Woon Shiu, Group Manager Wealth Planning at DBS Bank, says, “The family office offering is… the most important game changer that Singapore has produced in the wealth management space in the last five years.”
– Lim Hui Jie
9 hours ago
Stocks close higher, S&P 500 closes best in 13 months
Stocks ended higher on Monday as investors increased their optimism that the central bank may refrain from raising interest rates at its monetary policy meeting later this week.
The S&P 500 was up 0.93% to close at 4,338.93, while the Nasdaq Composite was up 1.53% to end the day at 13,461.92. The Dow Jones Industrial Average climbed 189.55 points, or 0.56%, to close at 34,066.33.
Investors will also be waiting for fresh inflation data this week, with the May CPI set to be released on Tuesday.
—Brian Evans
10 hours ago
Relatively weak trading day as Wall Street prepares for Fed meeting
It’s a relatively quiet day on Wall Street as investors await the mid-week Federal Reserve meeting.
Just over 31.5 million shares of the SPDR S&P 500 ETF Trust, a tracker of the broad S&P 500 index, changed hands as of 2:00 p.m. ET and the trading day was down to just two hours. About 80.6 million shares were traded in an average full day of the last 30 sessions.
This low volume underscores the typical calm-before-the-storm period seen at the start of the week ahead of a Fed meeting. Investors will keep an eye on Wednesday’s announcement and press conference for any changes in the direction of rate hikes, as well as comments from Fed Chair Jerome Powell on the state of the economy and future monetary policy.
Before that, Tuesday’s CPI data will also be watched as it is related to inflation.
— Alex Harring
11 hours ago
The positive impact of improved supplies for Nio could be offset by a tougher market, Nomura says
Tailwinds from delivery improvements could be limited by increasing competition for electric vehicle maker Nio, according to Nomura.
Analyst Frank Fan has started coverage of shares of the China-based automaker, trading at neutral. Its price target of $7.50 suggests U.S.-listed shares will fall about 3% over the next year from Friday’s close.
“We believe the company is on track to improve deliveries in 2H23F,” Fan said in a note to customers on Sunday, also calling first-quarter deliveries “poor.” “Nonetheless, we believe NIO’s implied upside potential in 2023F will be capped by increased competition and limited market share improvement, based on the company’s forecast for 2023 deliveries versus overall EV industry growth prospects.”
Fan’s price target implies further downside for the stock, which is already down more than 14% this year.
On Monday, the company cut prices and ended free battery swaps for new buyers, despite management saying earlier in the year that the company would not enter the electric vehicle “price war.” US stocks rose more than 7% in Monday’s session.
See grafic…
Nio stocks listed in the US