46 minutes ago
Nikkei 225 briefly hits 33-year high, highest level since May 1990
Japan’s Nikkei 225 briefly hit a 33-year high on Monday morning, and the benchmark Nikkei 225 index hit an intraday high of 33,848.98.
This surpassed the previous high of 33,753 seen on March 7 and is the highest level since May 1990.
However, the index soon fell after surpassing the high, recording a loss of 0.07% compared to its last close.
An hour ago
China keeps one- and five-year prime lending rates unchanged for November
China’s central bank has kept its one- and five-year prime lending rates at 3.45% and 4.2% for November.
This is the third consecutive month that the People’s Bank of China has maintained the one-year LPR after reducing it from 3.55% to 3.45% in August.
Meanwhile, the five-year LPR has remained at 4.2% for five consecutive months, having last been cut in June from 4.3%.
-Lim Hui Jie
An hour ago
China expected to keep prime lending rates stable in November, says Commerzbank
Analysts at Commerzbank expect the People’s Bank of China to leave its prime interest rates unchanged when it announces its rate decision later in the day.
The one-year prime lending rate (the fixed rate for most loans to households and businesses in China) is currently at 3.45%. The benchmark five-year loan rate (the fixed rate for most mortgages) is 4.2%.
“Commercial banks are expected to keep 1-year and 5-year LPRs unchanged at 3.45% and 4.2% respectively,” said Tommy Wu, senior economist at Commerzbank.
“While there have been no further cuts to MLF and LPR rates since August, commercial banks have continued to reduce their effective lending rates to their customers, including mortgage rates, to adjust to the latest easing of credit and real estate policies by the authorities”.
— Shreyashi Sanyal
An hour ago
CNBC Pro: Time to buy Alibaba’s stock dip after it plunged? This is what analysts say
Shares of Chinese e-commerce giant Alibaba plunged after the company scrapped plans to spin off and list its cloud computing business.
While investors have largely reacted negatively to the company’s decision, some on Wall Street have welcomed the move.
CNBC Pro subscribers can read more about what analysts at Morgan Stanley, JPMorgan, Bernstein and Barclays say about Alibaba here.
—Ganesh Rao
Friday, November 17, 2023 3:14 pm EST
Oil recovers 4% after the liquidation
Oil prices rebounded on Friday after a sell-off pushed US crude into a bear market earlier in the week.
The December West Texas Intermediate contract rose $2.99, or 4.10%, to settle at $75.89 a barrel, while the January Brent contract jumped $3.19, or 4.12%, to close at $80.61 a barrel.
The rally came after oil sold off sharply on Thursday, with US crude falling into a bear market with a 22% drop from its recent high in September.
Leo Mariani, senior research analyst at Roth MKM, described Friday’s rally as a “dead cat bounce following the speculator liquidation.”
–Spencer Kimball
An hour ago
CNBC Pro: Will the ‘Magnificent Seven’ have another good run in 2024? Morgan Stanley’s Mike Wilson weighs in
Much of the S&P 500’s gains this year can be attributed to the “Magnificent Seven” stocks.
The group consists of Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla, some of which have benefited from the hype around artificial intelligence.
But can the Magnificent Seven continue to beat the market in 2024? Mike Wilson, Chief US Equity Strategist at Morgan Stanley, weighs in and shares how to invest in 2024.
CNBC Pro subscribers can read more here.
—Weizhen Tan
Friday, November 17, 2023 2:56 pm EST
Mention of ‘inflation’ during earnings calls hits lowest level in more than two years
Corporate executives are becoming less concerned about inflation, if earnings commentary is any guide.
With the third-quarter earnings season almost over, some 276 of the SP 500 companies that have reported so far cited “inflation” as a major factor during analyst calls, according to John Butters, senior earnings analyst at FactSet.
This is the lowest figure since the second quarter of 2021, before inflation reached its highest point since the early 1980s. Butters noted that the financial and industrial sectors are the sectors that most often discuss the issue. .
—Jeff Cox
Friday, November 17, 2023 12:43 pm EST
A record number of options will expire today, which could inject volatility into the market.
A record number of options will expire today, which could bring some volatility to Friday’s trading session.
Goldman Sachs analyst John Marshall estimated that $2.2 trillion of notional options exposure will expire on Friday. This includes a notional $440 billion in individual stock options.
“While today’s monthly options expiry will be the largest November expiry on record, it will be significantly smaller than the typical quarterly expirations of recent years,” the analyst wrote. “Consistent with the last few quarters, there is unusually large open interest expiring around the 4000, 4500 and 5000 strikes on the SPX.”
—Lisa Kailai Han
Friday, November 17, 2023 10:35 am EST
Stocks Rebounded on Weaker Inflation Data Despite Enduring Risks to Consumers, Wells Fargo Says
Stocks rose this week, boosted by weaker-than-expected inflation data and a pause in escalating global tensions, according to Wells Fargo.
All 11 S&P 500 sectors rose, except energy, which was hurt by falling crude oil prices.
“The ‘don’t fight the Fed’ mantra and the (likely) sustainable, productivity-driven improvements we saw in Q3 are two of the strongest bullish signals for 2024, in our view,” wrote analyst Christopher Harvey. “While we continue to favor super caps in the near term, we recognize that with the index up 31% year to date (SPX: +17%) some profit taking/gross income deduction should be expected.”
—Lisa Kailai Han
