2 hours ago
Bank of Japan maintains ultra-easy monetary policy, Ueda holds press conference
Japan’s central bank left its ultra-easy monetary policy on hold at its last policy meeting of the year given the “extremely high level of uncertainty”, laying the groundwork for long-awaited monetary easing in the new year.
bank of japan unanimously voted for The government kept interest rates unchanged at minus 0.1% and adhered to a yield curve policy that capped the yield at 1% for 10-year government bonds.
Following the Bank of Japan’s decision, the Japanese yen reversed its gains and was trading at around 143.5 yen against the dollar during the day. The yield on 10-year Japanese government bonds remained almost unchanged.
Central Bank Governor Kazuo Ueda is scheduled to hold a press conference in Tokyo later on Tuesday, where he could provide positive guidance on the Bank of Japan’s future course of action.
Read the full article for more information.
— Clement Tan
5 hours ago
Australia’s central bank considered rate hike in December, but paused due to limited data: Minutes
The Reserve Bank of Australia considered raising interest rates by 25 basis points in December, but ultimately decided to keep rates unchanged at 4.35%. Minutes from the Central Bank showed that.
The RBA said the rationale for raising rates was tied to expectations that inflation would remain above the 2% target for an extended period of time, and there was a risk that this period would be extended.
Additionally, it has been noted that Australia’s underlying inflation rate is higher than some other countries.
Meanwhile, the RBA’s insistence on keeping interest rates on hold was due to slowing growth in consumer demand, and members also noted that the pace of disinflation had accelerated in some other countries in recent months. “If this is replicated in Australia, it could help bring inflation back on target.”
— Lim Huijie
5 hours ago
Nippon Steel plunges nearly 6% after agreeing to buy US Steel
Japan’s Nippon Steel fell 5.8% to 3,052 yen in the first hour of trading after agreeing to buy US Steel for $100. $14.9 billion in cash Late Monday.
Nippon Steel is acquiring U.S. Steel for $55 a share, representing a nearly 40% premium to U.S. Steel’s last closing price of $39.33 on Friday.
The acquisition of US Steel will enable Nippon Steel to aim for a global crude steel production capacity of 100 million tons.
The Nikkei Stock Average was flat, while the broader TOPIX fell 0.3% as investors awaited the Bank of Japan’s interest rate decision later in the day.
— Shreyashi Sanyal
6 hours ago
Yen strengthens for third consecutive day ahead of Bank of Japan interest rate decision
In 2022, the Japanese yen depreciated significantly against the dollar.
Stanislav Kogiku | Stanislav Kogiku SOPA Images | Light Rocket | Getty Images
The yen rose against the dollar, trading at the 142 yen level. This is the third consecutive day of increase.
Investors are preparing for the Bank of Japan’s final interest rate decision this year, with the bank expected to stick to its negative interest rate policy, according to a Reuters poll of economists.
The Bank of Japan’s stance on yield curve control policy is also attracting attention.
“While there is no urgency for the Bank of Japan to change its accommodative stance, our base case is for the current negative interest rate policy to end in April 2024 in line with annual wage negotiations,” Ardish said. That’s true.” Mr. Kumar, an international economist at T. Rowe Price, wrote in his client note:
“Another important decision facing the Bank of Japan is when and how to lift its yield curve control (YCC) policy. This could happen as early as December this year. However, the YCC policy has already been phased out and the parameters of the 10-year yield cap have been relaxed to the point where they are no longer meaningful,” Kumar added.
Japan’s Nikkei Stock Average was heading for a flat open with Chicago futures at 32,810 and Osaka futures at 32,740, compared to the index’s last close of 32,758.98.
— Shreyashi Sanyal
2 hours ago
CNBC Pro: Morgan Stanley favors ‘boring’ non-AI tech stocks heading into 2024. The world’s top stocks are:
Non-artificial intelligence tech stocks that struggled in 2023 have the potential for big gains in 2024, according to Morgan Stanley.
Tech analysts at the investment bank say AI and cloud computing stocks are likely to continue to grow, but their valuations are very high.
The Wall Street bank named 14 “most preferred” stocks with “potential for rerating based on pricing, growth potential, early cycle, and idiosyncratic earnings upside.”
CNBC Pro subscribers can read more here.
— Ganesh Rao
2 hours ago
CNBC Pro: Bank of America reveals 4 top biotech picks for 2024 – one with 166% upside potential
Bank of America named four small- and medium-sized pharmaceutical stocks as its 2024 “Top Picks,” highlighting their high potential for regulatory approvals and product launches over the next year.
The Wall Street bank said it remains “prudently selective” in its stock selection of biotech stocks as the overall biotech sector has underperformed the broader stock market in 2023.
Meanwhile, the biotech stock with BofA’s biggest upside has already received approval for a drug to treat a rare kidney disease that affects up to 150,000 people in the United States.
CNBC Pro subscribers can read more here.
— Ganesh Rao
10 hours ago
Crude oil prices rise due to shipping disruption in the Red Sea
Oil prices rose more than 1% on Monday as attacks on ships in the Red Sea disrupted shipping.
West Texas Intermediate’s January contract rose $1.04, or 1.46%, to settle at $72.47 per barrel. Brent February contract rose $1.40, or 1.83%, to settle at $77.95 per barrel.
BP said on Monday it would suspend shipping through the Suez Canal following attacks on Red Sea ships by Yemeni militants.
— Spencer Kimball
15 hours ago
Fed’s Goolsby says he’s ‘baffled’ by market reaction
Chicago Fed President Austan Goolsby said on CNBC’s “Squawk Box” that the market may have misinterpreted the central bank’s latest information since last week, when the Dow hit a record high.
“It’s not about what you said or what the chair said. It’s about what they heard and what they wanted to hear,” Goldsby said. “I was a little confused. Is the market just imposing what we want to say?”
He also pushed back against the idea that the Fed is actively planning a series of rate cuts.
“We do not discuss specific policies speculatively about the future. We vote at the meeting,” he said.
— Jesse Pound
10 hours ago
Real estate, utilities underperform S&P 500
Real estate and utilities underperformed on Monday. This sector was the only two of his sectors trading in negative territory. Real estate fell by 0.8%, and public works fell by 0.6%.
Kimco Realty and Boston Properties each fell more than 1%. Prologis fell 1.2%.
Exelon stock fell 3%, and PG&E fell more than 2%. Pinnacle West Capital fell 1.5%.
— Sarah Min
11 hours ago
Tech stocks could face even more pressure in 2024, Bernstein says
Tech stocks could face an even bigger wave of pressure in 2024, according to Bernstein senior research analyst Toni Sacconaghi.
“It is difficult to recommend overweight the technology sector in 2024,” the analyst said in a note Monday. “The tech industry has outperformed by more than 2,500 bps twice in the past 20 years (2009 and 2020), and in both cases its subsequent next year performance was in line with the broader market.”
Sacconaghi finds it difficult for the firm to maintain an overweight in tech stocks, but Bernstein believes strong momentum, falling interest rates and the overall outperformance of the sector have led to “a statistically severe economic downturn.” aggressively “bet” on technology (mostly punitive);
— Brian Evans