HKEX launches Recent York office in boost to expand international reach
Hong Kong’s stock exchange operator launched its Recent York office in a bid to expand its international reach and grow its global client base.
The brand new office of the Hong Kong Exchanges and Clearing Limited (HKEX) will probably be promoting its connectivity with Mainland China’s markets and its liquid primary and secondary money markets, it said.
“At HKEX, we’re fully focused on supporting the expansion ambitions of our customers across the globe,” said HKEX CEO Nicolas Aguzin.
“We look ahead to deepening our relationships with investors, corporations and risk managers across the region, connecting capital with opportunities and East with West,” he added.
About 41% of Hong Kong’s money equities market trading turnover are attributed to international investors. HKEX currently has offices in Beijing, Shanghai and Singapore.
— Lee Ying Shan
Japan’s 2-year yield briefly tops zero for first time since 2015
The yield on 2-year Japanese government bonds briefly rose above zero for the primary time since 2015 in Wednesday morning trade. The note gained 2.7 basis points to face slightly below the flatline.
Japan’s 2-year yield rises above zero for the primary time since 2015
The yield on the 10-year JGB jumped greater than 3 basis points to face at 0.451%, also reaching 2015 highs, while the yield on the 30-year JGB inched up 2 basis points to trade at 1.6%.
Yields move inversely to cost, and a basis point is the same as 0.01%.
— Jihye Lee
Bank stocks in Tokyo rise again as wider index falls
Japanese yen at strongest in greater than 4 months
The Japanese yen strengthened further overnight, after the Bank of Japan announced to widen its yield curve control band.
The currency strengthened by greater than 5% against the Australian dollar and the Recent Zealand dollar – while it strengthened past 3% against the U.S. dollar.
The yen strengthened after the Bank of Japan announced to expand its yield curve control band
CNBC Pro: Fund manager says a recession is ‘imminent’ — and names low-cost stocks to play it
Market watchers are increasingly fearful a couple of looming recession and fund manager Steven Glass is not any exception.
Against this backdrop, he says he’s specializing in corporations with earnings visibility which might be trading at attractive valuations.
His picks include a Big Tech name that he said is “extremely low-cost” with “huge margin potential.”
Pro subscribers can read more here.
— Zavier Ong
Stocks hold onto gains, snap 4-day loss streak
Stocks eked out a gain Tuesday, snapping a four-day streak of losses.
The Dow Jones Industrial Average rose 92.47 points, or 0.28%, to shut at 32,850.01. The S&P 500 gained 0.11% to three,821.73, while the Nasdaq Composite ticked up 0.01% to shut at 10,547.11.
—Carmen Reinicke
Bank of Japan is more hawkish sooner-than-expected, signals
The Bank of Japan’s surprise policy shift sent rates of interest rising globally, as investors reacted to more evidence central bankers all over the world will proceed to pressure rates of interest higher.
“It was definitely a surprise. I do not think there was anyone on the market who expected it,” said Ben Jeffrey, rate strategist at BMO. The Japanese central bank moved sooner-than-expected to tighten policy. The BOJ modified its yield curve policy to permit the yield on the 10-year Japanese government bond to maneuver 50 basis poins either side of its zero goal rate, up from 25 basis points.
The announcement drove rates higher all over the world, as yields on Japanese government bonds (JGBs) rose to 7-year highs. Rates move opposite yield. The U.S. 10-year jumped o 3.68%.
“They were definitely the last one standing when it comes to being dovish, and now they’re still dovish but less so,” said Jeffrey. “It’s obviously bearish JGBs and stuck income globally, but in the long run it should help the yen which is able to make Treasurys more attractive to Japanese investors next yr.”
–Patti Domm
Expect a more difficult environment ahead, says Atlantic Equities
Atlantic Equities analysts are anticipating a more difficult backdrop for the worldwide consumer in 2023.
“Inflation may possibly have peaked on a headline basis but input costs still remain elevated and corporations will probably be seeking to at the least hold if not take further pricing in some cases,” analyst Edward Lewis said in a note Tuesday. “Which will grow to be more difficult as levels of elasticity are starting to normalize with U.S. retailers beginning to keep off against pricing, in keeping with where European peers have been all yr.”
He highlighted Coca-Cola and Pepsi as a few of his favorite consumer picks, citing “category momentum, ongoing investment and robust execution supporting elevated growth.”
— Tanaya Macheel
Stock market has shed $11.7 trillion to this point this yr
It has been a rough yr for stocks, that are currently in a bear market and down yr to this point.
From the market’s yearly high on January 3 to this morning, U.S. stocks have shed $11.7 trillion in market cap, based on data from Bespoke Group.
“The max drawdown was $13.6 trillion on the low on 9/30, so we have seen market cap increase by slightly below $2 trillion since then,” analysts wrote Tuesday. “In dollar terms, this drawdown has been more extreme than anything investors have ever experienced. That is pretty deflationary if you happen to ask us!”
Of the $11.7 trillion, greater than $5 trillion in losses come from just five corporations – Apple, Microsoft, Amazon, Alphabet, Meta and Tesla.
—Carmen Reinicke
