China activity from reopening not yet reflected oil prices, says analyst
The demand from China’s reopening just isn’t yet fully reflected in oil prices, said Paul Sankey, president and lead analyst at Sankey Research.
“China data is looking really energetic from a mobility and activity standpoint, nevertheless it’s not likely showing up in oil prices,” he said, adding that the oil prices usually are not acting in addition to they expected it will right away.
Brent crude futures inched up 0.10% to $83.24 a barrel, while the U.S. West Texas Intermediate futures added 0.17% to $76.45 a barrel.
Sankey further said that OPEC member Saudi Arabia would want oil prices $10 above where they’re at currently.
“I do think that Saudi Arabia will manage the market into summer and get us towards $100 per barrel,” he said.
—Lee Ying Shan
People’s Bank of China maintains moderately dovish tone in report
The People’s Bank of China maintained a moderately dovish tone in its quarterly report, reiterating its current stance was considered appropriate to support economic growth and stability.
The central bank reiterated its support for a cross-cyclical adjustment to spice up demand and supply stronger support for the economy.
It also repeated its pledge to keep up sufficient liquidity and credit growth while keeping its money supply and social financing growth at an analogous pace as its nominal gross domestic product.
The PBOC added its required reserve ratio cuts last yr were one in every of the tools the central bank used to support lending, without elaborating further.
— Jihye Lee
CNBC Pro: Investor says tech has yet to bottom — and divulges the FAANG stocks to avoid
Bear market rally or a recent bull market? Market pros are undecided about this yr’s tech bounce, but investor Mark Hawtin thinks the worst might be yet to come back.
And while FAANG stocks are popular amongst many investors, Hawtin believes some are riskier bets than others.
Pro subscribers can read more here.
— Zavier Ong
Chip stocks proceed slide after U.S. reportedly mulls caps on South Korean chipmakers
Shares of South Korean chipmakers continued their slide on Monday.
Major chipmakers like Samsung and SK Hynix saw their shares fall by 1.63 and 1.54% respectively, while LG Electronics saw a smaller fall of 1.32%. The Kospi led losses in Asia overall, trading at 1.46% lower.
This comes after Reuters reported on Friday that the U.S. will likely impose a limit on the extent of chips made by South Korean corporations in China.
Reuters cited the U.S. Commerce Department’s undersecretary for industry and security Alan Estevez, who said that “What is going to likely be is a cap on the degrees that they’ll grow to in China,” when asked what would occur after a waiver from the U.S. government-imposed rules on chipmakers in China expires.
Shares of other major chipmakers also saw losses on Monday, with Taiwanese chipmakers Hon Hai Precision Industry (also generally known as Foxconn) down 1.94% and Taiwan Semiconductor Manufacturing lower at 1.35%.
— Lim Hui Jie, Jihye Lee
CNBC Pro: ‘The market has gone too far:’ Chief global strategist predicts when the Fed will cut rates
Despite efforts by the U.S. central bank to tighten financial conditions, “the market has gone too far,” based on Seema Shah, the chief global strategist at Principal Global Investors,
The strategist told CNBC how the Federal Reserve might react and when it would cut rates of interest that would boost stock markets.
CNBC Pro subscribers can read more here.
Fed’s Mester says rates have to go above 5% to quell inflation
Rates of interest have to go even higher for inflation to come back down, Cleveland Federal Reserve President Loretta Mester said Friday.
“I see that we will should bring rates of interest above 5%,” she told CNBC’s Steve Liesman during a “Squawk Box” interview. “We’ll work out how much above. That is going to rely upon how the economy evolves over time. But I do think we’ve got to be somewhat above 5% and hold there for a time as a way to get inflation on a sustainable downward path to 2%.”
Mester made news recently when she revealed that she was amongst a small group of Fed officials who, on the Jan. 31-Feb. 1 Federal Open Market Committee, wanted a half percentage point rate hike somewhat than the quarter-point move the panel approved.
— Jeff Cox
China Renaissance says Bao Fan is cooperating with a government probe
Missing Chinese investment banker Bao Fan is cooperating with a government investigation, his firm China Renaissance said in a filing Sunday.
“The Board has change into aware that Mr. Bao is currently cooperating in an investigation being carried out by certain authorities within the People’s Republic of China,” the corporate said, noting its business operations remain normal.
China Renaissance’s Hong Kong-listed shares have plunged 29% because the firm said on Feb. 16 it was unable to achieve Bao. He’s the corporate’s controlling shareholder, chief executive officer and founder, amongst other roles.
— Evelyn Cheng
Asia week ahead: Growth, inflation and buying managers’ index readings
Regional readings for purchasing managers’ index, Japan’s industrial production and Australia’s gross domestic product might be a few of the main economic events happening this week.
Latest Zealand is slated to report its fourth quarter retail sales on Monday while Taiwan observes Peace Memorial Day until Tuesday.
On Tuesday, Japan is scheduled to release its industrial output and retail sales while Australia will announce its current account for the fourth quarter.
India may even report its gross domestic product for its fourth quarter on Tuesday. Overnight, U.S. consumer confidence for February might be released as well.
South Korea’s market might be closed on March 1 to watch the Independence Movement Day.
On Wednesday, China’s National Bureau of Statistics will release its government reading of buying managers’ index after it showed a return to growth of fifty.1 in January.
Australia will release its inflation reading and the gross domestic product for the fourth quarter. Economists polled by Reuters expect to see growth of a seasonally adjusted 2.8% on an annualized basis.
Indonesia may even announce its February consumer price index, which is predicted to rise to five.42% from a previous reading of 5.28%, based on a Reuters poll.
On Thursday, fourth quarter trade data from Latest Zealand might be released in addition to South Korea’s industrial output and retail sales. S&P Global Manufacturing PMI for South Korea can be scheduled to be released.
On Friday, Japan’s unemployment rate for January is predicted to are available at 2.5% for January, based on a Reuters poll. Tokyo’s consumer price index for all items apart from fresh food is predicted to have risen 3.3% for January.
— Jihye Lee
Investors have to ‘control what they’ll control,’ says Baird
The market is currently experiencing the consequences of “an excessive amount of excellent news without delay,” based on Baird analyst Ross Mayfield. With inflation remaining hot and the Federal Reserve expected to proceed rate hikes, Mayfield advises investors to “control what [they] can control.”
“First, automate things: dollar cost averaging (investing across usually scheduled intervals) is a fantastic avenue to search out outperformance in volatile/sideways markets,” wrote Mayfield in a Friday note.
“Second, revisit your allocation to make sure you’re well diversified and on-plan.”
— Hakyung Kim
Stocks wrap up worst week of the yr
U.S. stocks ended lower on Friday, wrapping up their worst week of 2023.
The Dow Jones Industrial Average fell by 336 points, or 1.0%. The S&P 500 and Nasdaq Composite slid 1.0% and 1.7%, respectively. The Dow fell as much as 510 points, or 1.54%, earlier within the trading session.
— Hakyung Kim
