Asia-Pacific markets are mixed; Oil results in possible OPEC+ supply cuts

Asia-Pacific markets are mixed;  Oil results in possible OPEC+ supply cuts
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Australia’s central bank is expected to raise interest rates by 50 basis points: Reuters poll

THE Reuters poll of economists It expects the Reserve Bank of Australia to raise its key interest rate by 50 basis points to 2.85%.

RBA board members said the case for a slower pace of interest rate hikes was growing, according to minutes from September 1. In the 6th meeting, it increased the interest rate by 50 basis points.

Analysts at Nomura expect the central bank to raise interest rates by 40 basis points, “conveying the RBA’s view that hikes are coming to an end”.

Economists at Commonwealth Bank Australia see a higher chance of a 25 basis point increase rather than a 50 basis point increase.

– Jihye Lee

The British pound jumps on news of the UK government’s top tax rate cut

The British pound On Monday morning, news broke that the UK government would scrap plans to scrap the top rate of income tax.

Sterling gained 0.8% against the dollar to trade around $1.1250 shortly after 7 a.m. London time, bringing the pound back to its previous level. Finance Minister Kwasi Kwarteng said about it The widely criticized tax cuts in September. 23.

ANZ sees significant opportunity for OPEC+ cuts of up to 1 million barrels per day

Ahead of the OPEC+ meeting in October. 5, ANZ sees a “significant chance of a cut” as large as 1 million barrels a day, the firm’s analysts said in a note.

Most likely, the move will be made to “counter an extreme bearishness in the market”.

Any output cut below 500,000 barrels per day, however, would be “rejected by the market,” the note added.

– Jihye Lee

CNBC Pro: Investment pro says ETFs are a $10 trillion opportunity, reveals ‘huge’ areas of value

Exchange-traded funds offer the benefit of diversification, says Jon Maier, chief investment officer of Global X ETFs. He said the ETF market is “growing exponentially” and estimates it’s worth $10 trillion.

He names several opportunities for ETF investors in this volatile market.

Pro subscribers can read more here.

– Xavier Ong

The business confidence of Japan’s major manufacturers is deteriorating

According to the Bank of Japan’s latest quarterly tankan business sentiment survey, sentiment among Japan’s major manufacturers worsened in the July-September quarter.

The headline index for sentiment among major manufacturers came in at 8, down from the previous quarter’s reading of 9. Economists polled by Reuters had expected an 11-month publication.

“Our expectations and market expectations were for production figures to pick up – supply conditions have improved, you’ve seen the supply impact of zero Covid policies in China ease, commodity prices have come down a bit,” said Stefan Angrik, senior analyst. Economist at Moody’s Analytics.

“The fact that the manufacturing side of the economy isn’t doing so well is certainly not good for the outlook,” he told CNBC’s “Squawk Box Asia.”

But the non-manufacturing index rose slightly, which could mean Japan’s late Covid recovery is continuing, he added.

– Abigail Ng

CNBC Pro: Five global stocks experiencing de-globalization, according to HSBC

Supply chains, geopolitical tensions and deteriorating financial conditions have forced many global companies to turn “significantly” inward in search of solid earnings and growth, new HSBC research says.

In a difficult economic environment with recessionary pressures, the bank said the inward turn was “probably beneficial” for these stocks.

‘The wave of globalization?’ It said foreign sales of European firms fell below 50% in 2021, the lowest level in five years.

Oil prices rose after news of OPEC+ production cuts

CNBC Pro: Should investors avoid stocks? Strategists make their decisions and explain how to trade volatility

With monetary policy tightening in the coming months and Wall Street plunging deeper into the bear market abyss, many investors are beginning to wonder if now is the time to get out of the stock market and put their money into other asset classes.

CNBC Pro spoke to market watchers and dug into research from investment banks to find out what the pros think.

Pro subscribers can read more here.

– Xavier Ong

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