5 hours ago
Caixin China’s services PMI climbs to its highest level since August
The Caixin China services purchasing managers’ index rose to its highest level in three months in November, diverging from China’s official PMI reading, which showed a decline.
According to a Dec. 5 release, that private poll reading was 51.5 in November, rising from 50.4 in October to 50.2 in September.
China’s official non-manufacturing PMI services sub-index released last week came in at 49.3, showing a decline for the first time since December 2022.
– Clement Tan
5 hours ago
Tokyo’s inflation rate falls to 2.6%, its lowest level since July 2022
The headline inflation rate in Japan’s capital Tokyo rose 2.6% in November, the slowest increase since July 2022.
This came after the capital’s inflation rate rose to 3.3% in October, having largely fallen since its peak in January. Inflation readings in Tokyo are largely seen as a leading indicator of nationwide trends.
Core inflation, which excludes fresh food prices, was 2.3%, below Portal expectations of 2.4% and also below October’s 2.7%.
The so-called “core-core” inflation rate, which excludes both fresh food and fuel prices and is monitored by the Bank of Japan, fell slightly to 3.6% from 3.8% in October.
—Lim Hui Jie
3 hours ago
The Reserve Bank of Australia is expected to leave interest rates at 4.35%
Australia’s central bank left its key interest rate at 4.35% at its December meeting, in line with expectations of economists polled by Portal.
In its press release, the Reserve Bank of Australia said the “limited information” on the domestic economy received since its November meeting was in line with expectations.
The bank noted that October CPI readings showed inflation had moderated, but did not provide much more information on service sector inflation.
The RBA also stressed that while there were encouraging signs for goods inflation overseas, price inflation in services remained persistent and the same could happen in Australia.
—Lim Hui Jie
6 hours ago
Investors piled into high-yield bond ETFs in November, taking on the risk, according to State Street
According to State Street, November’s rally, which brought high returns in stocks and increases in bond prices, spurred investors to buy exchange-traded funds.
The firm noted that investors poured a total of $94 billion into ETFs last month, meaning they are $40 billion shy of the $500 billion in inflows for the year.
According to State Street, bond ETFs saw $27 billion in inflows, but high-yield bond ETFs recorded $11 billion in their best month ever. This time, ultra-short Treasury ETFs – a favorite of investors this year amid high interest rates and an inverted yield curve – saw $7.1 billion in outflows as yields collapsed in November.
“There was a significant shift in sentiment and the risk was expressed in bonds as well as stocks,” said Matthew Bartolini, head of SPDR Americas Research at State Street Global Advisors.
-Darla Mercado
7 hours ago
Small caps will be favored in 2024, says strategist
Small caps should be on track to extend their recent outperformance through 2024, said Olivier d’Assier, head of applied research, APAC at Axioma.
“This year, caution has been to bet on large, well-capitalized, profitable and value stocks that benefited from a strong USD,” said d’Assier.
As macroeconomic uncertainty over the rise in interest rates has receded, the new market consensus is “high for not long,” d’Assier added. This shift will benefit small-cap growth stocks, he noted.
“In 2024, as investors take advantage of the recovery in the economic cycle, they will favor small-cap growth stocks and companies that benefit from a weaker USD,” he continued.
– Hakyung Kim
7 hours ago
Gitlab shares are rising in after-hours trading
Gitlab shares rose more than 16% in after-hours trading Monday after reporting better-than-expected fiscal third-quarter results. The software company also achieved adjusted operating profit for the first time.
Meanwhile, disposable medical device maker Merit Medical Systems fell 4.1% after it announced a planned $550 million sale of convertible notes in a private placement.
See grafic…
Gitlab shares
8 hours ago
Stock futures open little changed on Monday
US stock futures opened slightly below the flatline on Monday evening.
Dow Jones Industrial Average futures fell 31 points, or 0.1%.
Futures linked to the S&P 500 and the Nasdaq Composite also fell by 0.1%.
– Hakyung Kim