US 2-year Treasury yield jumps, breaching 4.9%
sensitive politics US Treasury for two years The yield jumped more than 33 basis points, or 7.4%, to 4.909% during the afternoon session in Asia.
return On the 10 years treasury It rose during US hours after Federal Reserve Chairman Jerome Powell said the final interest rate would remain higher than expected – finally settling at 4.1176%.
return on 30 year treasury bonds It also rose more than 3% to 4.2537%.
Returns move inversely with prices, 1 basis point equal to 0.01%.
– Jie Lee
Investors should remain wary of unverified notes on reopening China: Credit Suisse
A strategist at Credit Suisse said investors need to “be careful” about unverified notes circulating on social media that China may reopen early next year.
“I think that, from different angles with a lot of news flowing – especially the unverified one, we need to be careful,” said Edmund Huang, head of securities research at Credit Suisse.
Speaking at the company’s China investment conference, Huang said the reopening was likely more calculated than surprising.
“It will take some time especially after the party convention and the formation of the new government – which means it will be a more gradual process than overnight, with China fully reopening to the rest of the world,” he said.
– Jie Lee
JPMorgan Asset Management sees smaller Fed increase in December
JPMorgan Asset Management expects the Federal Reserve to raise interest rates by 50 basis points in December, according to a note.
Tai Hui, chief strategist for Asia Pacific, said the Fed may take a more moderate path in the near future.
“If core inflation eases between now and the end of the year, the Fed can choose a more moderate rate path and avoid putting the economy into a recession,” he said in the note.
“We believe there is some regression in inflation on the horizon,” he said, adding that the Fed’s tightening cycle is expected to extend into the second quarter of 2023.
– Jie Lee
A special survey shows that service activity in China slowed to the lowest level in six months
China Caixin Services PMI It came in at 48.4 for the month of October, the lowest reading since May and the second consecutive contraction for the sector.
In September, the edition was 49.3, also below the 50-point mark, indicating a contraction.
Earlier this week, the official non-manufacturing PMI came in at 48.7.
The PMI readings are sequential and represent expansion or contraction on a monthly basis.
– Abigail Ng
South Korea’s stock movers: Heavyweights fall, defense stocks rise
Market leader Samsung Electronics saw sharp losses in the overall negative session, down 2.42% in the early hours of trading.
Hyundai Motor lost 2.42% and SK Hynix stock fell 2.49% while Naver lost 3.45%.
Contrasting this trend, defense stocks rose after North Korea fired more missiles into the waters between Korea and Japan.
Vitek Inc. jumped 3.44%, while Korea Aerospace Inc. added 1.24%. Hanwha Aerospace was 0.71% higher.
The Cosby It decreased by about 1%.
– Abigail Ng
CNBC Pro: Wall Street is lowering its price target this earnings season. Here are 13 US stocks that bucked the trend
A CNBC Pro analysis revealed that only a handful of companies have avoided a target share price cut by Wall Street banks this earnings season.
Of the nearly 300 S&P 500 companies that reported results last month, more than two-thirds — 72% — saw median price targets drop or left unchanged by analysts compared to last month.
Only 13 stocks appeared with a significantly higher price target of 5% or more and still displayed a potential upside of at least 5%.
CNBC Pro subscribers can read more here.
– Ganesh Rao
Australia’s stock movers: BHP, Wesfarmers shares down 3%
Dow down 505.44 points, Nasdaq down 3.36%
Stocks closed lower in a choppy trading session as the Federal Reserve raised another 75 basis points in interest rates and signaled its intentions to continue rising.
The Dow Jones Industrial Average fell 505.44 points, or 1.55%, to settle at 32,147.76 points. The S&P 500 fell 2.5% to close at 3,759.69, while the Nasdaq Composite fell 3.36% to close at 10,524.80.
– Samantha Sobin
Stocks are falling as Powell says the final interest rate will be higher than previously expected
Briefing reporters Wednesday after raising interest rates for the fourth consecutive time, Federal Reserve Chairman Jerome Powell said the central bank’s ultimate goal of raising interest rates has gone up.
“We still have some ways to go and the data from our last meeting suggests that the final level of interest rates will be higher than previously expected,” he said.
Stocks fell after the comment, indicating that interest rates will continue to rise and likely remain at a higher-than-expected level for longer as the Fed tames inflation. This reversed the gains made earlier in the afternoon when traders digested the Fed’s statement as more dovish and hoped for less rate hikes in the future.
The Dow Jones Industrial Average rose about 60 points but pared the gains. The S&P 500 also pulled back from a rally after rising interest rates and only rose 0.09%. The Nasdaq was slightly in the red.
– Carmen Renick
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