5 hours ago
Hong Kong markets are cooling off after the previous session’s gains
Hong Kong’s Hang Seng Index fell 1.81% in Thursday morning trading, shedding more than half of its gains from the previous session.
The Hang Seng Tech Index lost 2.34%. Most technology-focused stocks rallied on Wednesday on signs of cooling U.S. inflation, boosting hopes that the Federal Reserve could soon end its policy of raising interest rates.
On Thursday, stocks such as Alibaba, Xiaomi, Xpeng and Li Auto were among the losers, posting losses between 2.4% and 6.79%.
—Shreyashi Sanyal
8 hours ago
CNBC Pro: UBS expects the Fed to cut interest rates in half next year. Here are 3 of their favorite jobs
UBS has highlighted several stock ideas it favors for 2024 as it predicts massive interest rate cuts next year.
The investment bank expects slower economic growth and sharp disinflation in the US, leading to a 275 basis point interest rate cut. This would reduce the federal funds rate from the current 5.25% to 5.5% to 2.50% to 2.75%.
Given the economic outlook, UBS strategists recommend several trades to their clients for 2024. CNBC Pro highlighted three of them. Subscribers can read more here.
– Ganesh Rao
6 hours ago
The Earth is “big enough” for the US and China to be successful, Xi says at his meeting with Biden
According to both countries, the US and China have agreed to resume high-level military communications.
US President Joe Biden and Chinese President Xi Jinping met on Wednesday for their first face-to-face meeting in a year.
“We are returning to direct, open and clear communication,” Biden said at a news conference after the talks.
The US wanted to revive military communications, especially after several near misses in which Chinese ships nearly collided with American forces.
“We must ensure that competition does not lead to conflict,” Biden said at the start of the summit. “The critical global challenges we face, from climate change to counternarcotics to artificial intelligence, require our collective efforts.”
The summit, held on the sidelines of the Asia-Pacific Economic Cooperation conference in San Francisco, followed efforts between the countries to improve high-level communications amid ongoing tensions.
Read the whole story here.
—Evelyn Cheng
9 hours ago
Stocks are on track for a winning week
With more than half of the trading week now behind us, the three major indices are poised to close higher.
The S&P 500 is up about 2% for the week. Meanwhile, the Dow and Nasdaq Composite gained around 2.1% and 2.2%, respectively.
—Alex Harring
9 hours ago
According to Deutsche Bank, mega-cap banks could suffer a hit to their net interest income if interest rates fall
According to Deutsche Bank, large banks could be in trouble if interest rates fall.
“Disclosures from mega-cap banks suggest everyone remains set for higher (not lower) interest rates,” said analyst Matt O-Connor. He used the third quarter 10Qs from major financial institutions to update interest rate sensitivities.
Of the biggest names, Citi and Goldman Sachs are both “relatively neutral on interest rate changes, with slight setbacks in Netto II.” [net interest income] from lower interest rates and modest stimulus from higher interest rates.”
On the other hand, if interest rates fall, both Bank of America and Wells Fargo would suffer the largest losses in net interest income.
Morgan Stanley’s asset management division would also suffer a large hit in net interest income, although the bank appears to be “debt focused” outside of the division, meaning that “the net impact of lower interest rates on Netto II is less than MS disclosed.” ” wrote O-Connor.
—Lisa Kailai Han
9 hours ago
Goldman Sachs announces its official outlook for 2024
Goldman Sachs just released its official 2024 outlook – and a message for investors written by Taylor Swift.
CNBC Pro subscribers can read the full story here.
—Sarah Min
9 hours ago
Watch stocks make big moves after hours
9 hours ago
Stock futures open slightly lower
Stock futures fell slightly shortly after 6 p.m. ET.
Futures tied to the Dow and S&P 500 each fell 0.1%. Nasdaq 100 futures lost 0.2%.
—Alex Harring