3 hours ago
Chinese EV Inventories Rise; Keep an eye on Xpeng’s quarterly results
Hong Kong-listed shares of Chinese electric vehicle makers jumped in early afternoon trading.
Shares of BYD, Nio, Xpeng and Li Auto rose between 2.47% and 6.11%.
The markets in Asia rose across the board following positive economic data from China. A weak U.S. inflation reading also boosted hopes that the Federal Reserve is nearing the end of its interest rate hike cycle.
Xpeng is expected to report third-quarter results later today. Analysts expect the electric vehicle company to report revenue of 8.54 billion Chinese yuan ($1.63 billion), according to LSEG estimates. It is also expected to report a quarterly net loss of 2.90 billion Chinese yuan.
In the second quarter, the company reported a larger-than-expected loss and revenue of 5.06 billion Chinese yuan.
—Shreyashi Sanyal
3 hours ago
Hong Kong shares rise nearly 3%, leading gains in Asian markets
Hong Kong’s Hang Seng index jumped 2.8% to its highest level in over a week, while the technology-focused Hang Seng Tech index rose over 3%.
The indices gained the most among the major stock markets in the Asia-Pacific region.
Asian stocks opened higher following positive sentiment overnight sparked by a weak U.S. inflation reading that boosted hopes that the Federal Reserve is nearing the end of its rate-hiking cycle.
Sentiment was also boosted by China reporting better-than-expected retail sales and industrial data for October on Wednesday.
China’s CSI 300 index rose 0.77% in late morning trading.
—Shreyashi Sanyal
4 hours ago
China’s industrial production and retail sales rose more than expected last month
China’s industrial production and retail sales grew faster than expected in October, according to data from the National Bureau of Statistics.
Industrial production rose 4.6% year-on-year in October, up from 4.5% in September and above a Portal poll of analyst expectations of 4.4%.
Retail sales rose 7.6% last month from a year earlier, beating the 7% growth rate forecast in a Portal poll.
The first week of October marked the last major holiday of the year in China, the so-called Golden Week. Official data showed that domestic tourism spending recovered close to 2019 levels. However, this was partly due to more people staying in the country as foreign travel had not yet fully returned to pre-pandemic levels.
China’s CSI 300 index was last up 0.82% in early trading.
Read the whole story here.
—Shreyashi Sanyal, Evelyn Cheng
6 hours ago
CNBC Pro: Time to invest in China? The professionals weigh up and name sectors and stocks that you should bet on now
China’s economy has been in crisis this year due to a decline in exports, a slowdown in consumer spending and a prolonged slump in the real estate sector, and several analysts are now bearish on the Asian giant.
Chinese stocks have performed poorly – Hong Kong’s Hang Seng index is down about 14% year to date, while the Shenzhen Component is down 10%.
Many emerging market funds have also reduced their allocations to China by about 200 basis points this year and shifted their weight to other markets such as Taiwan, India, South Korea, Brazil and Mexico in anticipation of better valuations and growth.
However, analysts are currently seeing opportunities in the Chinese market and are identifying sectors – and stocks – that are promising
CNBC Pro subscribers can read more here.
—Amala Balakrishner
6 hours ago
CNBC Pro: Harvesting tax losses? Scotiabank Names 10 Canadian Stocks as ‘Prime Candidates’
As the end of the year approaches, investors will likely review their portfolios and consider which stocks to sell to capture tax losses.
Tax-loss harvesting is a strategy to offset capital gains tax from stocks whose share price has risen with losses from distressed stocks.
To help investors, Scotiabank has identified several stocks in Canada’s TSX Composite Index that have fallen significantly this year but are still rated “Sector Outperform” by its analysts.
CNBC Pro subscribers can read more here.
– Ganesh Rao
7 hours ago
Japan’s economy is shrinking much faster than expected
Preliminary government data showed on Wednesday that Japan’s economy contracted for the first time in four quarters in the July-September period, amid slowing global demand and rising domestic inflation.
Preliminary gross domestic product fell 2.1% year-on-year in the third quarter, while also recording a quarter-on-quarter decline of 0.5%.
Economists polled by Portal had expected the world’s third-largest economy to post a 0.6% annual contraction in the July-September quarter and a 0.1% decline from the previous quarter.
Read the whole story here.
– Clement Tan
10 hours ago
Oil is stagnant as traders weigh tensions in the Middle East and stronger demand forecasts
Oil prices were flat on Tuesday as traders weighed signs that tensions in the Middle East could be easing against forecasts of higher crude demand.
Brent crude oil contracts for January fell 5 cents to close at $82.47 a barrel, while U.S. West Texas Intermediate contracts for December were steady at $78.26.
There were some signs that tensions in the Middle East could be easing, as President Joe Biden said he believed a deal could be reached to release hostages held by Hamas. Fears that the war between Israel and Hamas could spread caused crude oil prices to rise in mid-October.
Crude oil prices rose earlier in the day after the International Energy Agency raised its crude demand forecasts and cooling U.S. inflation bolstered views that the Federal Reserve may be done raising interest rates.
–Spencer Kimball
11 hours ago
Inflation is cooling to near record levels, says Austin Goolsbee, president of the Chicago Fed
Inflation is falling to near records this year, but more progress needs to be made, Chicago Federal Reserve President Austan Goolsbee said Tuesday.
This year could see the fastest slowdown outside of wartime while at full employment, he said in a speech prepared for a Detroit Economic Club event on Tuesday. Goolsbee is the first Fed official to respond to Tuesday’s consumer price index report, which was unchanged in October from the previous month.
He said improving supply and increasing productivity led to the declines.
“Progress continues, although we still have a long way to go,” Goolsbee said. “In 2023, we could reach or even exceed the one-year mark for a decline in CPI inflation. And we may achieve that with an unemployment rate that never rises above 4 percent,” he added.
Goolsbee said the U.S. could see strong growth without inflation as supply shocks fade. The key to further cooling inflation will be housing construction, he said.
—Michelle Fox, Jeff Cox, Steve Liesman, Portal
13 hours ago
The market is “celebrating” after the latest inflation data, market participants say
The market is in celebratory mood following the release of the consumer price index on Tuesday morning and could be preparing for a year-end rise, said Gina Bolvin, president of Bolvin Wealth Management Group.
“We need more months of weak inflation data, but the stock and bond market is celebrating today,” Bolvin said. “We are well prepared for a year-end rally.”
Similarly, AXS Investments CEO Greg Bassuk called the data an “early Christmas present” for investors who are unclear about what the Federal Reserve will do with interest rates for the rest of 2023.
The data “is being cheered by Wall Street and Main Street alike, as a Fed shift from tight to dovish interest rate policy is just the Christmas present investors are coveting,” Bassuk said.
“October’s cooler CPI data, combined with a slowing but resilient economy, bodes well for a soft landing for the economy while positioning 2024 for lower interest rates and the prospects of robust stock market growth,” he added.
—Alex Harring
14 hours ago
The Fed looks “smart” based on recent inflation data, portfolio manager says
According to Bryce Doty, senior portfolio manager at Sit Fixed Income Advisors, the Fed appeared to believe its interest rate cycle was justified after the latest reading of the consumer price index.
“It seems prudent for the Fed to effectively end its tightening cycle while inflation continues to slow,” he said. “Yields have fallen significantly as the last few investors, unconvinced that the Fed is finished, are likely to throw in the towel.”
—Alex Harring
Originally posted 2023-11-15 07:24:37.