Hong Kong stocks jump 4% ahead of China’s Covid briefing

Hong Kong stocks jump 4% ahead of China's Covid briefing
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Oil rose more than a dollar ahead of China’s briefing

Oil prices rose ahead of a news conference hosted by China’s State Council, as investors continued to monitor developments – offsetting some of the losses seen on Monday, when it hit its lowest level in nearly a year.

The West Texas Intermediate Futures rose 1.76% to $78.59 a barrel, while Brent crude futures Up 2.28% to $85.00 a barrel.

However, oil markets “could misread news of China’s lockdown,” Rystad Energy wrote in a note.

“[The latest lockdowns’] The potential impact on China’s short-term oil demand, particularly in transportation, may be minor,” the note added, citing the company’s own research of actual-traffic activity in China.

Even as daily Covid cases continue to rise, cities like Shanghai haven’t seen a slowdown in road traffic activity, according to Rystad Energy’s own research.

– Li Yingshan

Chinese indices pop ahead of Covid briefing

Indexes in China jumped more than 2% as investors closely watched developments on the country’s zero-covid policy after seeing losses in the previous session.

China’s CSI 300 index rose 2.97% in the morning session, while Shanghai Composite increased by 2.2%. The Schengen material The index increased by 2.172%.

Local media reported that the Chinese State Council will hold a press conference on the Covid measures at 3pm local time or ET.

The nation saw a Reduction in the number of daily infections First time in over a week.

– Evelyn Cheng, Jihye Li

Hong Kong-listed property stocks rose after China revised fundraising rules

Equities related to Hong Kong-listed property developers jumped after China’s regulator announced it would lift restrictions on equity fundraising for the sector.

China Securities Regulatory Commission announcement Five steps to support the real estate market, including removing multi-year restrictions on property developers selling stocks to raise funds.

Cify Holdings Group jumped 13.01% in the first hour of trade, Country Garden Also increased by 13.36%, The Logan Group increased by 10.23% and Longfor Group Gained 9.88%.

— Jihe Lee

Hong Kong on pace for best month since April 1999

of Hong Kong Hang Seng Index April is on pace to post the best month since 1999, when the index gained 21.85%.

The index was up more than 3% as of Tuesday morning, according to Refinitiv data, and is up nearly 22% for the month of November.

The HSI closed 1.57% lower on Monday, its worst day in a week, while the Hang Seng lost 1.87% on November 21.

Gina Francola, Jihye Li

Japan unemployment rate unchanged, retail sales miss estimates

of Japan unemployment rate September’s reading for October was steady at 2.6%, according to official data. The number was slightly higher than the 2.5% average expectation of economists polled by Reuters.

The Job to applicant ratio, which measures active job openings per job seeker, was at 1.35. This indicates that there are 135 jobs available for every 100 applicants, indicating a still tight labor market in Japan.

nation Retail sales It rose 4.3% in October on an annual basis, missing expectations for a 5% increase predicted in a separate Reuters poll.

The latest reading marks the first softening in retail sales growth seen since June this year.

Jihoe Lee

The Fed should continue hiking next year, Bullard said

James Bullard in Jackson Hole, Wyoming.

David A. Grogan CNBC

St. Louis Fed President James Bullard said Monday that the Fed should continue to raise its benchmark interest rate next month and that markets may be underestimating the possibility of the Fed becoming more aggressive.

“We have to continue to raise our interest rates through 2023, and there is some risk that we will have to go even further. [5%]” Bullard said in Barron’s live webinar.

Bullard made waves in financial markets earlier this month when he said the Fed’s hike “Only limited effect“So far on inflation and benchmark interest rates are likely to rise between 5% and 7%.

Bullard, who is a voting member of the FOMC, said the Fed should hold off on any rate cuts next year even if the inflation picture begins to show consistent improvement.

“I think we’re probably going to have to be there through 2023 and 2024, given the historical behavior of core PCE inflation or the Dallas Fed’s trimmed average inflation. They’ll come down, I think. That’s my baseline. But they’ll probably win’ as quickly as the market wants. And probably won’t come down as quickly as the Fed would like,” Bullard said.

-Jesse Pound

CNBC Pro: Wealth managers name 9 ‘cheap’ stocks to buy as recession fears rise

Steven Glass, managing director of Pella Funds Management, said it’s “critical” for investors to look at valuations now because a recession is underway and inflation looks set to continue.

In this environment, Glass selected a list of nine stocks that, he said, “look particularly cheap given their growth outlook.”

CNBC Pro subscribers can read more here.

— Wegen Tan

Cryptocurrency prices fell but quickly recovered after Blockfy declared bankruptcy

Bitcoin prices fell on Monday after BlockFi officially announced it would file for Chapter 11 bankruptcy in the wake of FTX’s bankruptcy.

Bitcoin briefly dipped as low as around $16,000 but has already rebounded. It was last down just 1% above $16,300, according to CoinMetrics. Ether’s price action shows a similar bounce.

BlockFi has been in bad shape since the spring, following the Terra Project blowup that caused Three Arrows Capital to explode. At that time, the company accepted a bailout from FTX that would help it avoid bankruptcy. Of course, FTX is now handling its own bankruptcy.

– Tanaya fish

CNBC Pro: Goldman Sachs names global automakers facing China slowdown

According to Goldman Sachs, many global companies are heavily exposed to China, including some of the world’s largest automakers, which generate 20% to 40% of their global sales in the country.

In a Nov. 22 note to clients — before the latest protests — the investment bank mapped the global auto industry’s exposure to Chinese consumers.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Stocks ended the session on Monday

After a triumphant Thanksgiving week, all three major indexes closed lower on Monday as investors held off a sell-off amid concerns over supply chain disruptions amid Covid-related protests in China.

The Dow Jones Industrial Average lost 1.45%, or 497.57 points and closed at 33,849.46. The S&P 500 Also ended down 1.54% at 3,963.94. The Nasdaq Composite slipped 1.58% and ended at 11,049.50.

– Alex Haring

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