An hour ago
Yen weakens after BOJ holds rates, increases flexibility on yield curve control
The Japanese yen weakened after the country’s central bank kept interest rates steady and said it will allow greater flexibility in its yield curve control policy.
The Bank of Japan said the target level of 10-year Japanese government bond yields will remain at 0%, but will take the upper limit of 1% “as a reference.”
The news caused the yen to fall almost 0.6% against the dollar, briefly surpassing the 150 per dollar threshold.
The benchmark Nikkei 225 index reversed earlier declines and rose 0.7%, while the Topix added 1.14%.
The Bank of Japan also raised its inflation forecast for the next fiscal year and now expects the core consumer price index to rise 2.8%, up from the 1.9% it predicted three months ago.
—Shreyashi Sanyal
4 hours ago
Japan’s retail sales growth rate falls after four consecutive months of acceleration
Japan’s retail sales rose 5.8% in September from a year earlier, a slower expansion compared to the 7% growth seen in August.
This is the first month the growth rate softened after four straight months of accelerated growth, and was slightly lower than the 5.9% expected by economists polled by Reuters.
Total business sales reached 50.35 trillion yen ($337.17 billion) in September, its highest level since March.
-Lim Hui Jie
An hour ago
Lower growth is the new normal for China, says HSBC
China’s new normal will be lower growth than before, said Fred Neumann, chief Asia economist and co-head of global research at HSBC.
“We probably need to adjust our expectations in terms of what the upper ceiling is for China’s growth,” Neumann told CNBC’s “Squawk Box Asia.”
HSBC now forecasts China’s economy will grow 4.9% this year and 4.6% in 2024. Neumann said that will likely be China’s growth range over the next two years and “probably as good as possible while the real estate market continues. struggle.”
Neumann said that although projections for China’s growth are more modest than before the pandemic, there are still some signs of economic recovery underway and growing investment areas, including the electric vehicle space.
Beijing’s current growth target is 5% by 2023. Data today showed that China’s manufacturing activity recorded an unexpected contraction in October.
—Shreyashi Sanyal
4 hours ago
CNBC Pro: Is Meta a Buy After Brutal Tech Selloff? This is what the professionals say
Meta Platforms saw its stock caught in a broad tech selloff last week, but several analysts remain bullish.
Meta shares fell 3.86% last week, although they were trading more than 2% higher on Monday.
“I think this technology is sold here, [when] If we look back three or six months, I see it more as a golden opportunity, not the right time. [for it] go into hibernation mode,” Dan Ives of Wedbush Securities told CNBC “” on Thursday, amid the market slowdown.
Other analysts also weighed in on the stock’s prospects.
CNBC Pro subscribers can read more here.
—Amala Balakrishner
6 hours ago
Apollo Global and KKR still on track to eventually enter S&P 500, Barclays says
Apollo Global Management and KKR & Co. are still on track to eventually join the S&P 500 index, according to a Barclays report to clients released Monday, although immediate prospects may be dimmed by the effect of higher interest rates on the GAAP of both companies. -declared earnings.
After Blackstone was admitted to the S&P 500 in September, “the index inclusion narrative has become increasingly central” to alternative asset managers, analyst Benjamin Budish said in the note. The problem for Apollo and KKR, however, is that S&P requires earnings measured according to generally accepted accounting principles in the most recent quarter, “and in the aggregate for the preceding four quarters.”
But with interest rates rising in the third quarter, “this could result in unrealized losses on APO/KKR’s fixed income investments (largely related to its insurance businesses),” Barclays argued, noting that profits GAAP for both had been negative in previous quarters. which saw 10-year Treasury yields rise by similar magnitudes.
—Scott Schnipper, Michael Bloom
7 hours ago
Stocks Making the Biggest Moves in Extended Trading
Check out the companies making headlines after hours.
Arista Networks: The cloud networking solutions company added 6% on Monday after the bell. Arista Networks reported $1.83 earnings per share, excluding items, on $1.51 billion in revenue. Analysts surveyed by FactSet had estimated $1.58 earnings per share on $1.48 billion in revenue.
Lattice Semiconductor: The maker of low-power programmable chips fell about 16% in late trading. Lattice’s fourth-quarter revenue forecast of $166 million to $186 million missed analysts’ consensus estimate of $195.7 million, according to FactSet’s StreetAccount.
Wolfspeed: Shares of the chipmaker rose more than 11% following fiscal first-quarter results. The company posted a loss of 53 cents per share, while analysts expected 67 cents per share, according to LSEG, formerly known as Refinitiv. Revenue missed estimates, coming in at $197 million, while analysts had forecast $208 million.
The full list can be found here.
-Hakyung Kim
7 hours ago
Stock futures open unchanged on Monday
U.S. stock futures were little changed Monday night.
The Dow Jones Industrial Average added just 2 points, or 0.01%. Futures linked to the S&P 500 were down 0.02%. Nasdaq 100 futures were unchanged.
-Hakyung Kim
