2-year US Treasury yield jumps above 4.9%
Sensitive policies 2-year US Treasury the yield jumped more than 33 basis points, or 7.4%, reaching 4.909% during the afternoon session in Asia.
The yield on the 30-year Treasury bond also rose more than 3% to 4.2537%.
Yields move inversely to prices and 1 basis point equals 0.01%.
– Jihye Lee
Investors should remain wary of unverified ratings on China reopening: Credit Suisse
Investors should “stay cautious” of unverified notes circulating on social media hinting at a possible reopening of China early next year, a Credit Suisse strategist has said.
“I think, judging from different angles with a lot of news feeds – especially unverified ones, we have to be careful,” said Edmond Huang, head of China securities research at Credit Suisse. .
Speaking at the company’s China investment conference, Huang said it’s more likely to be a measured process of reopening than an abrupt process.
“It will take time, especially after the party congress 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,” did he declare.
JPMorgan Asset Management predicts lower Fed hike in December
JPMorgan Asset Management expects the Federal Reserve to raise rates by 50 basis points in December, according to a note.
APAC chief market strategist Tai Hui said the Fed may take a more moderate course in the near future.
“If underlying inflation declines by the end of the year, the Fed could opt for a more moderate rate path and avoid plunging the economy into a recession,” he said in the statement. note.
“We believe there is some easing in inflation on the horizon,” he said, adding that the Fed’s tightening cycle is likely to extend into the second quarter of 2023.
– Jihye Lee
Private survey shows service activity in China slows to lowest level in six months
China Caixin Services Purchasing Managers Index came in at 48.4 for October, the lowest reading since May and the second straight contraction for the sector.
In September, the print was at 49.3, also below 50 points, indicating a contraction.
Earlier this week, the official non-manufacturing PMI came in at 48.7.
PMI readings are sequential and represent month-to-month expansion or contraction.
South Korea Stock Market Moves: Heavyweights Fall, Defense Stocks Rise
Market leader Samsung Electronics posted steep losses in the overall negative session, down 2.42% in the first few hours of trading.
Hyundai Motor lost 2.42% and SK Hynix lost 2.49%, while Naver lost 3.45%.
Contrary to the trend, defense stocks gained after North Korea fired more missiles into the waters between Korea and Japan.
Victek jumped 3.44%, while Korea Aerospace gained 1.24%. Hanwha Aerospace rose 0.71%.
The Kospi was down about 1%.
CNBC Pro: Wall Street is cutting price targets this earnings season. Here are 13 US stocks that bucked the trend
Only a handful of companies have avoided a price target cut by Wall Street banks this earnings season, analysis by CNBC Pro has found.
Of the nearly 300 S&P 500 companies that reported results in the past month, more than two-thirds — 72% — had their median price targets cut or left unchanged by analysts from the previous month.
Only 13 stocks emerged with a significantly higher price target of 5% or more and still offered at least 5% upside potential.
Australian stock moves: BHP and Wesfarmers down 3%
Dow plunges 505.44 points, Nasdaq plunges 3.36%
Stocks closed lower in a volatile trading session as the Federal Reserve made another 75 basis point rate hike and hinted at its intentions to continue the hike.
The Dow Jones Industrial Average slipped 505.44 points, or 1.55%, to 32,147.76. 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 Subin
Stocks fall as Powell says terminal interest rate will be higher than expected
In a briefing with reporters on Wednesday after a fourth consecutive rate hike of 0.75 percentage points, Federal Reserve Chairman Jerome Powell said the central bank’s ultimate target for raising rates interest rate had risen.
“We still have some way to go and the data received since our last meeting suggests that the ultimate level of interest rates will be higher than expected,” he said.
Stocks fell on the comment, signaling that interest rates will continue to climb and likely stay higher than expected for longer as the Fed gets inflation under control. This reversed early afternoon gains as traders digested the Fed’s statement as more dovish and hoped rate hikes would be lower going forward.
The Dow Jones Industrial Average rose about 60 points, but pared its gains. The S&P 500 also fell after a post-rate hike spike and rose just 0.09%. The Nasdaq was slightly in the red.