Hong Kong carriers: Property, tech stocks rise as optimism reopens
CNBC Pro: Wall Street Says Recession Is Coming. One investment expert names his favorite stocks to make it difficult
Wall Street experts are increasingly sounding the alarm about an impending recession.
As economic growth slows and inflation remains high for longer, how should investors position themselves? Veteran investor Nancy Tengler shares her favorite dividend stocks with CNBC.
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– Xavier Ong
Confusion, optimism on China’s move away from zero Covid: British Chamber of Commerce
Steven Lynch, managing director of the British Chambers of Commerce in China, said Beijing’s “U-turn” on Covid policies is causing both confusion and optimism.
“There’s a lot of optimism and hope for 2023, but a lot of confusion,” he said in an interview with CNBC’s “Squawk Box Asia,” explaining that the departure from strict Covid rules happened “almost overnight.”
He said there could still be “huge discrepancies” between local policies and central government rules, and people were worried about getting sick.
“One thing is very clear, Covid is here now. Covid is quite widespread here in Beijing. I think it brings a whole new set of challenges to what they’re going to face with China,” he said.
– Abigail Ng
Inflation is still not a problem in China, says Credit Suisse
According to Credit Suisse Chief Investment Officer Jack Siu, Chinese inflation will remain below 3% for the next 12 to 18 months, and the central bank is comfortable with that range.
“We don’t think CPI is a problem in China, in fact, it will remain stable in the 1% to 3% range for the foreseeable future,” he told CNBC’s “Street Signs Asia.” Inflation rose in many economies, but consumer prices in China remained subdued due to weak demand.
China is likely to see a “resurgence in consumer activity” in the next six months as people get used to living with the virus after reopening the economy, Siu said.
“In the second quarter, we expect GDP to reach 6.1% – the main effects being partly because people are living more normally,” he said.
– Abigail Ng
Producer prices in China fell in November, while consumer prices rose
China’s producer price index fell 1.3% in November from a year earlier, extending a slide after a 1.3% drop in October and slightly beating estimates for a 1.4% drop in a Reuters poll.
The country’s consumer price index rose 1.6% year-on-year in November, in line with expectations, down from October’s 2.1% reading.
Onshore and offshore, the Chinese yuan strengthened to around 6.94 to the dollar shortly after the release of the economic data.
– Lee Yingshan
CNBC Pro: These 4 global consumer tech stocks are poised to win China’s reopening, HSBC says
Some global consumer technology companies could gain as China eases some Covid-19 restrictions, with shares of the four firms up more than 40%, according to HSBC.
The Asia-focused bank said a faster-than-expected recovery in consumer electronics in the coming months would benefit these companies.
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– Ganesh Rao
South Korea posts smaller current account surplus for October
South Korea posted a current account surplus of $880 million in October, down from $1.6 billion in September.
Direct investment assets in South Korea rose to $2.75 billion, compared to $4.74 billion a month earlier. Direct investment commitments increased from $430 million to $810 million.
South Korea runs a current account surplus throughout the year, except for July and August. A current account surplus indicates that a country sells more to the world than it buys from outside its borders.
– Lee Yingshan
Stocks hit higher, S&P 500 snaps 5-day losing streak
Stocks closed higher, with the S&P 500 snapping its longest losing streak since October.
The S&P index ended 0.75% higher at 3,963.51 points. The Dow Jones Industrial Average rose 183.56 points, or 0.55%, to 33,781.48, while the Nasdaq Composite added 1.13% to 11,082.00.
– Samantha Subin
Interest rates on 30-year fixed-rate mortgages are falling
According to Freddie Mac, the cost of financing a home fell for the fourth week in a row.
The weekly average interest rate on a 30-year mortgage is now 6.33%, up from 6.49% last week. Over the past month, the interest rate on these loans has fallen by about 75 basis points: As of November 10, the average interest rate on a 30-year fixed mortgage was 7.08%.
Even with the short-term decline, the cost of financing a home loan is up significantly from a year ago. At this time last year, the average interest rate on a 30-year mortgage was 3.1%.
Despite falling interest rates, demand for home loans continues to decline. According to the Mortgage Bankers Association, the volume of mortgage applications last week decreased by 1.9% compared to the previous week.
— Darla Mercado, Diana Olick
Part of the yield curve is now the most inverted since 2001
The inversion of the 3-month and 10-year Treasury yield curve is now the deepest since January 2001, at nearly 90 basis points, according to CNBC data. The short end of the curve rose to 4.30% from just 0.05% earlier in the year as traders priced in higher interest rates.
The yield curve inverts when short-term Treasury rates rise above long-term yields. Many economists consider the 2-year to 10-year portion of the yield curve more predictive of a potential recession.
Cathie Wood pointed to the most inverted part of the yield curve since the early 1980s. The bond market is showing the Federal Reserve made a “serious mistake” by raising interest rates, a prominent investor said.
– Yun Lee