Southeast Asian markets are in for a ‘bungee jump’ in 2023, based on JPMorgan
Southeast Asian markets will move in a trajectory resembling that of a “bungee jump” next yr — taking a plummet before surging within the second half of 2023, JPMorgan wrote in a report.
That’s prone to bee characterised by a “sharp fall followed by a rapid increase in altitude (bear market rally) followed by one other decline until eventually markets come to rest at rock-bottom,” analysts led by Rajiv Batra wrote.
They attributed that to weakened purchasing power in light of monetary policy tightening, lower savings and the upper cost of borrowing.
Moreover, JPMorgan forecasts the MSCI ASEAN Index will “re-test this yr’s lows and potentially move even lower” in the primary half of 2023, on the back of tightening financial conditions and weaker external demand, amongst other aspects.
The MSCI ASEAN index plunged 22% from February’s high to the yr’s lowest in October, but rebounded 10%.
— Lee Ying Shan
Janet Yellen sees much lower inflation by end of 2023, but says recession risks remain
US Treasury Secretary Janet Yellen speaks on the Bureau of Engraving and Printing Western Currency Facility on December 8, 2022 in Fort Value, Texas.
Andy Jacobsohn | Afp | Getty Images
U.S. Treasury Secretary Janet Yellen foresees a “substantial reduction in inflation” by the top of next yr, provided there isn’t any “unanticipated shock.”
Yellen, speaking in an interview on CBS’ “60 Minutes,” premised her optimism on shipping costs and gas prices coming down.
She cautioned, nonetheless, that recession risks remain and that the economy continues to be liable to shocks. But she said this might be buffered by a “very healthy” banking system, in addition to business and household sectors.
“There is a risk of a recession. But it surely definitely is not, in my opinion, something that’s needed to bring inflation down.”
The most recent reading for the U.S. consumer price index is anticipated Tuesday. Analysts polled by Reuters expect the index rose 0.3% in November. Before this, October’s consumer price index inched up lower than expected. Even with the slowdown within the inflation rate, it still stays well above the Fed’s 2% goal.
—Lee Ying Shan
Oil prices climb greater than a dollar on Moscow’s threat to chop output
Oil prices rose greater than a dollar on the back of further China reopening optimism and Moscow threatening to slash oil production in retaliation for price caps on Russian crude exports.
In early Asia hours, Brent crude futures rose 1.53%, or $1.11 to $72.13 a barrel, while U.S. marker West Texas Intermediate futures traded up 1.29%, or near a dollar at $77.08 a barrel.
Russian President Vladimir Putin on Friday told reporters within the Kyrgyz capital of Bishkek that Russia “simply is not going to sell” to countries imposing the West’s price cap on Russian oil, Reuters reported.
– Lee Ying Shan
CNBC Pro: Shares of this under-the-radar global miner are set to rally 50%, analyst says
Shares in a little-known London-listed miner are set to rise by 50%, based on Ben Davis, a mining analyst at Liberum Capital.
The corporate, which extracts metals equivalent to platinum, palladium, and chrome, also offers an 8% dividend yield.
CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: Dan Niles is betting the S&P 500 will hit a recent low in 2023. Here’s how he’s trading it
Dan Niles’ Satori Fund is thrashing the market this yr. He shares what’s behind the outperformance and the way he’s trading the market as recession looms.
Pro subscribers can read more here.
— Zavier Ong
Futures fall barely
Stock futures have slowly declined throughout the primary hour of trading. Dow futures are down about 50 points, or around 0.2%, while Nasdaq 100 futures have dipped about 0.3%.
— Jesse Pound
Wall Street coming off losing week
The most important averages fell on Friday to clinch a losing week, snapping a two-week winning streak for Wall Street.
Listed below are the important thing stats from last week:
- The Dow fell 2.77%, suffering its worst stretch since September.
- The S&P 500 fell 3.37%, suffering its worst stretch since September.
- The Nasdaq composite fell 3.99%, suffering its worst weekly stretch in a month.
- The Russell 2000 fell 5.08%, marking the worst week since September for small caps.
- All 11 sectors were negative for the week, led to the downside by energy.
—Jesse Pound, Christopher Hayes