PMI numbers, China, Japan, Australia, manufacturing PMI

11 minutes ago

Australia’s central bank is likely to raise rates again in March, AMP says

The Reserve Bank of Australia is likely to raise rates again at its March meeting before pausing for the rest of the year, AMP said in a note.

“We think the RBA is closer to pausing the cycle of rate hikes than the market expects,” AMP senior economist Diana Mousina said in a note.

“We expect only one more rate hike from the Reserve Bank at the March board meeting and a pause for the remainder of the year (with the risk of rate cuts later in 2023),” she said, citing the “disappointing” economic environment. data from the past months,

Mousina pointed to negative job growth between November and December, a less-than-expected wage increase in the last quarter of last year, and how monthly consumer prices show signs of slowing in early 2023.

She added that a weaker employment print in February will increase the risk of a pause at the RBA meeting in March. Australia will report its unemployment rate for February on March 16, following a 0.2 percentage point increase in unemployment in February.

The Australian dollar weakened 0.31% against the US dollar on Wednesday, trading at 0.6573.

— Lim Hui Jie

2 hours ago

Hong Kong movers: technology, consumers, reopening-related stocks

Technology and consumers related to reopening led gains in Hong Kong during Wednesday morning trading.

Tencent gained 5.53%, NetEase gained 6.94% and Alibaba rose 4.74%.

EV manufacturers also posted gains, with Xpeng gaining 8.73%, Li Auto gaining 7.32% and Baidu gaining 5.56%.

Reopening-related consumer names also rose, with Budweiser Brewing Company up 6.38%, Anta Sports up 5% and Li Ning up 4.64%.

3 hours ago

China’s factory activity in February shows further growth

China’s official manufacturing purchasing managers’ index rose to 52.6 in February, above the 50 points that separate growth from contraction, data from the National Bureau of Statistics showed.

That’s up from January’s reading of 50.1 and above expectations of 50.5, according to economists polled by Reuters.

The non-manufacturing PMI rose to 56.3 – also above 54.4 in January, the highest level since June 2022.

– Jihy Lee

4 hours ago

Factory activity in Japan slows at fastest pace in 2.5 years

Factory activity in Japan slowed at its fastest pace in two and a half years in February, a private investigation by au Jibun Bank found.

The purchasing managers index for the manufacturing industry fell from 48.9 in January to 47.7. This was also the fourth consecutive month that Japanese manufacturing activity remained in contraction territory.

A PMI reading above 50 indicates expansion, while a reading below 50 signals a contraction in growth.

On Tuesday, Japan’s industrial production fell 4.6% from a month ago in January, the biggest drop the economy has seen in eight months.

— Lim Hui Jie

4 hours ago

Australia’s gross domestic product to grow by 2.7% in 2022

The Australian economy grew by 2.7% for the whole of 2022, in line with economists’ expectations, but lower than the 5.9% figure set for 2021.

On a quarterly basis, gross domestic product grew 0.5%, according to data from the country’s statistical office. Australia now has five consecutive quarterly GDP increases, but growth slowed for the last two quarters.

The Australian dollar strengthened 0.36% against the US dollar, while the S&P/ASX 200 fell 0.22%.

4 hours ago

CNBC Pro: Is ChatGPT the Tip of the Iceberg? Analysts reveal potential AI uses – and the stocks to play it

ChatGPT’s success has captured the public’s imagination and investors’ attention. But HSBC says the chatbot could be the tip of the artificial intelligence iceberg.

So what’s next for AI? Wall Street analysts reveal its potential and name several stocks to play in the emerging space.

Pro subscribers can read more here.

— Zavier Ong

5 hours ago

South Korea’s trade deficit narrowed in February

South Korea’s trade deficit fell to $5.3 billion in February after a deficit of $12.65 billion in January, preliminary data showed.

The latest reading is a smaller deficit than expected to see a deficit of $6.06 billion, according to economists polled by Reuters.

Exports fell 7.5%, less than expected with an 8.7% drop – while imports rose 3.6%.

– Jihy Lee

13 hours ago

This year’s stock market may defy March’s usual history of positive gains

March is usually a positive month for the stock market, but this year could bring more of the same turbulence that upset investors in February.

Stocks will exit February with heavy losses, with the S&P 500 down 2.3% for the month through Monday. The index is still up 3.7% for the year so far.

“February is the second worst month of the year, with an average decline of 0.21%, which is the second worst month after September,” said Sam Stovall, chief strategist at CFRA. “March posts a 1.1% gain on average, up 64% of the time.” March is the fifth-best month for the S&P 500, according to CFRA data dating back to 1945.

For more information, read the full story on CNBC Pro.

— Patti Domm, Tanaya Machel

4 hours ago

CNBC Pro: Top investors share 3 tips for buying stocks in this turbulent market

13 hours ago

US 10-year hits highest level since November

The yield on the 10-year US Treasury hit a high of 3.983% on Tuesday, the highest level since Nov. 10, when the note returned a whopping 4.117%. It was last about 3 basis points higher at 3.955.

Government bond yields contributed to their sharp gains in February as traders spent longer than expected weighing the prospects of tighter monetary policy.

—Gina Francolla, Tanaya Machel

9 hours ago

UBS says the Fed’s rate hikes create “downside risks” for markets

According to UBS Financial Services, interest rate hikes by the US Federal Reserve have weighed on stock markets.

“We assess the economy is at a late stage in the cycle, with the Fed continuing to hike rates and growth likely to slow. Tighter policies are creating downside risks for markets,” Brian Rose, senior economist at UBS, wrote Monday. in a note to customers.

The company expects the S&P 500 to end the year close to current levels, with better upside potential in cyclical markets outside the US, particularly emerging markets and Germany.

“We prioritize value over growth,” Rose wrote.

According to Rose, financial conditions have not tightened in line with the Fed’s rate hikes. The Fed raised rates by 25 basis points on February 1 and suggested further rate hikes in the coming months.

—Pia Singh


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