New Zealand interest rate hikes, inflation data

Singapore’s inflation rate eases small increases in gas and electricity prices

Singapore’s core inflation rate eased 0.2% to 5.1% on an annualized basis in October, the Ministry of Trade and Industry (MTI) reported – after seeing the same index at 5.3% in September.

The latest consumer price index for October was lower than a Reuters poll that had forecast 5.3% for October.

All-commodity inflation also eased to 6.7% on an annual basis in October after seeing a rate of 7.5% in September.

MTI said the easing was due to small increases in prices of goods and services as well as gas and electricity.

“Energy and food commodity prices have come off the peaks reached earlier in the year, but remain high due to persistent supply constraints,” the ministry said in a statement.

– Lee Ying Shan

Malaysian stocks were little changed as the wait for the country’s new prime minister continues

Malaysian-listed stocks were little changed as the country’s political deadlock continued and local media reported that Malaysia’s king, the Yang di-Pertuan Agong, would make a decision, without giving a timeframe.

The benchmark KLCI index was down 0.09% after two negative sessions.

Among the index’s heavyweights, Genting Malaysia fell 2.33% after reporting its third-quarter earnings, and Top Glove also shed 1.1% – while Nestlé gained 0.28% and CIMB gained 0.18%.

The Malaysian ringgit In the morning session, it strengthened slightly against the US dollar and last stood at 4.5690.

– Jihi Lee

Chinese online gaming stocks are higher as the crackdown on the sector appears to be easing

New Zealand’s central bank has signaled further hikes ahead

Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said the bank’s only goal was to get the official cash rate to a point where inflation could be moderated.

Orr’s comments came after the central bank delivered its largest rate hike of 75 basis points.

“Our core inflation rate is very high,” Orr said at a press conference, adding that the central bank is “well down the path of a tightening cycle.”

In a separate press release shortly after the decision, the RBNZ said, “Committee members agreed that monetary conditions need to continue to tighten further.

– Lee Ying Shan

BYD shares fell after Berkshire Hathaway trimmed its stake

shares of BYD Hong Kong-listed shares fell 2.64% after Warren Buffett’s Berkshire Hathaway announced it was cutting its stake in the Chinese electric vehicle maker.

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According to an HKEX filing, the company sold 3.2 million shares worth about 630 million Hong Kong dollars ($80.6 million), reducing its holding of the company from 16.28% to 15.99%, the filing showed.

Separately, the company also announced that it will raise the prices of some of its EV models, according to Reuters.

– Jihi Lee

Shares of Quezhou, Baidu rise after earnings report

Xiaomi expects revenue to decline for the third quarter

Xiaomi According to Refinitiv poll estimates, the third quarter of 2022 is expected to see a decline in revenue.

The company expects revenue to fall 9.66% to 70.52 billion yuan ($9.87 billion) for the July to September quarter, compared with 78.06 billion yuan in the same period last year.

Daiwa Capital Markets, in a note, attributed the likely decline to “sharper smartphone sales” as well as weaker macro environment and consumer sentiment.

Shares of Xiaomi fell as much as 1.72% in morning trade before the release, and were last around 1% lower.

-Li Ying Shan

The New Zealand dollar strengthened after the biggest increase

The New Zealand dollar strengthened to 0.6192 against the dollar, its biggest gain on record, after the central bank raised rates by 75 basis points.

The NZD last traded at 0.6170 against the dollar and the NZX 50 index in New Zealand fell 0.8%.

New Zealand’s 10-year Treasury yield touched 4.305% shortly after the decision, and last traded at 4.235%. Yields move inversely with prices, and one basis point is equal to 0.01%.

– Lee Ying Shan

CNBC Pro: Goldman Says EV Batteries Becoming ‘Critical’ and Names 2 Stock Picks

According to Goldman Sachs, electric vehicle batteries are gaining “critical importance” during the energy transition.

The investment bank named two top stocks to drive the EV battery sector, with one gaining nearly 70%.

CNBC Pro subscribers can read more here.

– Weizen Tan

Singapore released narrowed GDP estimates for 2022

Singapore’s economy is projected to grow by around 3.5% in 2022, according to forecasts from the Ministry of Trade and Industry, citing a softer external demand outlook following Europe’s energy crisis and China’s continued Covid-related restrictions.

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The figure is a narrower estimate from the previously estimated range of between 3% and 4% – and represents 4.1% annual growth and a 1.1% increase from the third quarter from the previous quarter.

The ministry also said it sees the country’s 2023 GDP growth between 0.5% and 2.5%.

– Jihi Lee

CNBC Pro: UBS says self-driving cars could become a $100 billion market in China — and name the stocks to drive it

Electric vehicles are rapidly gaining traction, especially in China, the world’s largest EV market.

But UBS believes autonomous driving will be an even bigger megatrend than electrification – with a market size of around $100 billion in China alone by 2030.

Here’s how investors can play this megatrend, according to UBS.

Pro customers can read more here.

– Xavier Ong

The Central Bank of New Zealand has increased rates by 75 basis points

The Reserve Bank of New Zealand raised its official cash rate by 75 basis points, the largest increase on record, to 4.25%.

The decision is in line with analysts’ expectations, according to a Reuters poll.

This is the ninth consecutive increase since the RBNZ first started its rate hike cycle in October 2021, five of which were 50 basis point hikes.

New Zealand inflation is currently at 7.2%, just below a three-decade high.

– Lee Ying Shan

Investors should rotate into another top-tier Chinese tech stock: UBS Global Wealth Management

According to Eva Li, head of large China equities in the chief investment office of UBS Global Wealth Management, investors should take advantage of the turmoil in Chinese tech stocks to move into smaller and less established companies.

“Under the current regulation, second-tier players will outperform the top guys. Use this opportunity to spin off companies that are second-tier,” such as those with flexible income, he told CNBC’s “Street Sign Asia.” told

In addition, technical giants are considered “macro recovery”. [proxies]And the path to an eventual full reopening is “going to be up and down, it’s going to be choppy,” he said.

“We are finally getting there but it takes time,” he said.

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– Abigail Ng

Stocks rose, with the S&P 500 closing above the key 4,000 level for the first time since September.

Stocks rose on Tuesday with all three major averages rising more than 1% as Wall Street bet that interest rate hikes and inflation will ease later in the year. The S&P 500 also closed at a level not seen since September.

The Dow Jones Industrial Average rose 397.82 points, or 1.18 percent, to close at 34,098.10. The Nasdaq Composite also rose 1.36% to 11.174.41.

The S&P 500 closed up 1.36% at 4,003.58, its first close above the 4,000 level since September.

-Carmen Reinick

Today’s 19 S&P 500 52-week highs are 84% of all-time records.

Nineteen stocks in the S&P 500 hit 52-week highs so far on Tuesday and, of those, 16 (84%) also hit all-time highs. Three of the 19 (TRV, MRK, IBM) are also in the Dow Jones Industrial Average, and two of them are among all-time highs:

  • General Parts Company (GPC), the largest since its 1948 IPO
  • O’Reilly Auto (ORLY), highest since 1993 IPO
  • TJX Cos. (TJX), the highest since its 1987 IPO
  • General Mills (GIS) is at its highest level since 1927
  • Monster Beverage (MNST), predecessor’s Nasdaq listing in 1992
  • PepsiCo (PEP), all-time high, going back to Pepsi-Cola’s 1965 merger with Frito-Lay
  • Marathon Petroleum (MPC), highest return for spinoff from Marathon Oil in 2011
  • Aflac Inc. (AFL), all time back to 1973 via CNBC data history
  • Arthur J. Gallagher (AJG), highest since 1984 IPO
  • Globe life (GL), highest from ancestor data in 1980
  • MetLife (MET), highest return to go public in 2000
  • Progressive (PGR), the highest since the 1971 IPO
  • Travelers (TRV), the highest return to spin-off from Citi in 2002
  • Gilead Sciences (GILD), the most since April 2020
  • Merck & Co. (MRK), the highest return through CNBC history dating back to 1978
  • PACCAR (PCAR), the highest since the 1971 IPO
  • Quanta Services (PWR), highest since 1998 IPO
  • Snap-on (SNA), the most since June 2021
  • International Business Machines (IBM), the highest since February 2020

The S&P 500 had two 52-week lows at Tuesday’s opening:

  • Tesla (TSLA), lowest since November 2020
  • Medtronic (MDT), lowest since March 2020

No comment.

– Scott Schnipper and Christopher Hayes

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