Asia markets fall ahead of Fed decision; China factory activity and Australia inflation

24 Mins Ago

Australia’s fourth quarter inflation rate slows to 4.1%, lower than expectations

Australia’s consumer price index in the fourth quarter rose 4.1% year-on-year, slower than the 5.4% recorded in the third quarter and also lower than the 4.3% expected by economists polled by Reuters.

This also marks the fourth straight quarter where the inflation rate fell, and marks the lowest level since December 2021.

The trimmed inflation rate, which excludes the most volatile 30% of items, came in at 4.2%, falling from 5.2% in the third quarter.

— Lim Hui Jie 

An Hour Ago

South Korea industrial output cools; retail sales falls in December

Employees assemble vehicle chassis modules on the production line at the Hyundai Mobis factory in Asan, South Chungcheong, South Korea, on Tuesday, Jan. 24, 2017

SeongJoon Cho | Bloomberg | Getty Images

South Korea’s industrial output cooled in December and retail sales fell, according to official data.

December manufacturing production index increased 0.6%, less than the prior month’s 3.3% increase. The reading was still higher than a Reuters poll forecast of a 0.5% increase.

On the consumption side, retail sales in December fell 0.8% from the prior month and was up 2.2% from a year ago. That follows a 1% increase in November.

South Korea’s Kospi opened 0.08% lower.

— Shreyashi Sanyal

An Hour Ago

Trump vs. Biden: Goldman Sachs names the global stocks to play the U.S. elections

As the U.S. presidential election comes into the spotlight, Goldman Sachs has assessed the potential impact on global markets by changes in regulation, taxation, and other government policies.

The Wall Street bank said in a note that if former President Donald Trump returns to power, risks would increase around potential tariffs on European exports and reduced U.S. support for Ukraine. However, it sees U.S. subsidiaries of foreign companies potentially gaining if Trump delivers on a cut to corporation taxes.

The investment bank has also revealed the sectors and stocks most likely to be shielded from President Trump’s proposed 10% tariff on all U.S. imports.

CNBC Pro subscribers can read more here.

— Ganesh Rao

An Hour Ago

CNBC Pro: ‘Substantial upside’: Morgan Stanley fund manager loves this memory stock – and it is among analysts’ top picks for 2024

Chipmaker Nvidia and Google parent Alphabet have been hot favorites among investors looking to invest in technology stocks in the past year.

Value investor Aaron Dunn of Morgan Stanley, however, has his sights on another company offering a “value angle on semis” and a “value angle on AI.”

Of the 37 analysts covering the stock on FactSet, 29 have a buy or overweight rating on the stock and several have also listed it as one of their top stock picks for 2024.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

7 Hours Ago

Oil rises as IMF boosts growth forecast, market braces for U.S. response to drone attack

Oil prices rose on Tuesday after the International Monetary boosted its growth forecast and as the market braced for the U.S. response to a deadly drone attack on its troops in the Middle East.

The West Texas Intermediate contract for March was last up $1.07, or 1.39%, to trade at $77.85 a barrel. The Brent contract for March last traded at $82.98 a barrel, up 58 cents or 0.70%.

The IMF forecast economic growth of 3.1% this year, up 0.2 percentage points from its October forecast, due to a resilient U.S. economy and stimulus in China.

Geopolitical tensions in the Middle East, meanwhile, are simmering after militants killed three U.S. soldiers in a drone attack in Jordan. The U.S. holds Iran-allied militants responsible and has vowed to respond.

Though the response in the oil market to Mideast turmoil has been muted, analysts warn that direct confrontation between Iran and the U.S. could send prices higher.

— Spencer Kimball

6 Hours Ago

Geopolitical shocks could lead to ‘growth disappointments,’ says IMF

The International Monetary Fund slightly increased its global growth forecast for 2024, noting that a hard landing is looking less likely — but cited ongoing geopolitical conflicts as potential overhangs to global growth.

“New commodity price spikes from geopolitical shocks––including continued attacks in the Red Sea — and supply disruptions or more persistent underlying inflation could prolong tight monetary conditions. Deepening property sector woes in China or, elsewhere, a disruptive turn to tax hikes and spending cuts could also cause growth disappointments,” the organization wrote in its World Economic Outlook Update for 2024.

Nonetheless, the IMF raised its global growth projection to 3.1% in 2024, which is 0.2% higher than its forecast from October 2023.

— Hakyung Kim

8 Hours Ago

35 S&P 500 stocks reach new all-time highs during Tuesday’s trading session

53 stocks in the S&P 500 notched new 52-week highs during Tuesday’s trading session.

Of these names, 35 companies cinched new all-time highs, including “Magnificent 7” stocks Meta Platforms, Microsoft and Nvidia.

Here are some other names that reached new all-time high levels on Tuesday:

— Lisa Kailai Han, Christopher Hayes

4 Hours Ago

Goldman Sachs’ David Kostin expects the market rally to broaden in 2024

This year, it’s time for the other 493 stocks in the S&P 500 to shine, according to Goldman Sachs’ chief U.S. equity strategist David Kostin.

While the “Magnificent 7” tech titans led last year’s market outperformance, Kostin believes that the rally is due to broaden this year.

“We’ll take the Russell 2000 and the small caps,” he said on CNBC’s “Squawk on the Street” on Tuesday morning.

As a strong economy causes the Federal Reserve to begin cutting interest rates this year, Kostin believes that this will benefit the small-cap names with less stable balance balance sheets and more floating rate debt.

“Some of the net interest income for a lot of companies with strong cash positions should diminish over time as the Fed is cutting,” Kostin added.

— Lisa Kailai Han

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