Hong Kong shares rose 4% ahead of China’s Covid briefing

Hong Kong shares rose nearly 4% in the Asian session;  China's Covid situation remains in focus
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Oil prices rose more than a dollar before the Chinese briefing

Oil prices rose ahead of a press conference by China’s State Council as investors continued to monitor developments – paring some of the losses seen on Monday when they hit near-year lows.

The West Texas Intermediate futures It increased by 1.76% and was equal to 78.59 dollars/barrel Brent oil futures It rose by 2.28% to $85.00/barrel.

However, oil markets may have “misjudged news of China’s shutdown,” Rystad Energy wrote in a note.

🇧🇷[The latest lockdowns’] The impact on China’s short-term oil demand, especially in transportation, is likely to be small,” the company added, referring to a study conducted by the company on real traffic activity in China.

According to Rystad Energy’s own research, while daily Covid cases continue to rise, cities like Shanghai have not seen a slowdown in traffic.

– Lee Yingshan

Chinese indices open ahead of Covid briefing

Indexes in China rose more than 2% as investors closely watched developments in the country’s zero-Covid policy after seeing losses in the previous session.

China’s CSI 300 index rose 2.97% in the morning session Shanghai Composite It increased by 2.2%. The Shenzhen Component The index gained 2.172%.

Local media reported that China’s State Council will hold a press conference on Covid measures at 3pm local time or 2am ET.

The nation saw a reducing the number of daily infections for the first time in over a week.

– Evelyn Cheng, Jihye Lee

Hong Kong-listed property shares rise after China revises fundraising rules

Shares linked to Hong Kong-listed property developers rose after the Chinese regulator announced it would lift a ban on capital raising for the sector.

China Securities Regulatory Commission announced five support measures for the real estate market, including the removal of a multi-year restriction on property developers selling shares to raise financing.

Cifi Holdings Group rose 13.01% in the first hour of trading, village garden also increased by 13.36%, The Logan Group 10.23% increased and longforgroup increased by 9.88%.

– Jihye Lee

Hong Kong’s best month since April 1999

Hong Kong hang seng index It is on pace to post its best month since April 1999, when the index gained 21.85%.

The index rose more than 3% on Tuesday morning and is up nearly 22% for the month of November, according to Refinitiv data.

The HSI closed 1.57% lower on Monday, its worst day of the week, while the Hang Seng lost 1.87% in November. 21.

🇧🇷Gina Francolla, Jihye Lee

Japan’s unemployment rate was unchanged, while retail sales missed estimates

of Japan unemployment rate According to official data, October was flat from September’s reading at 2.6%. The figure was slightly higher than the average expectation of 2.5% among economists polled by Reuters.

The ratio of cases to applicantA measure of active jobs per job seeker was at 1.35. This shows that there are 135 jobs for every 100 applicants, indicating that Japan still has a tight labor market.

of the nation retail It rose 4.3% on a year-over-year basis in October, missing expectations for a 5% rise predicted in a separate Reuters poll.

The latest reading marks the first softening in retail sales growth seen since June this year.

🇧🇷 Jihye Lee

Bullard says the Fed should continue hiking next year

James Bullard Jackson Hole, Wyoming.

David A. Grogan | CNBC

St. Louis Fed President James Bullard said on Monday that the Fed should continue to raise its key interest rate in the coming months and that the market may be underestimating the chances of the Fed being more aggressive.

“We will have to continue raising interest rates until 2023, and there are some risks that we will have to go even higher. [5%]”, Bullard said on a Barron’s Live webinar.

Bullard made waves in financial markets earlier this month when he said the Fed would hike.only limited effectsBy now, inflation and the benchmark interest rate may need to rise between 5% and 7%.

Bullard, a voting member of the FOMC, said the Fed would have to hold off on any interest rate cuts next year even if the inflation picture begins to show consistent improvement.

“I think given the historical behavior of core PCE inflation, or the Dallas Fed tapering of average inflation, we’re probably going to have to stay there through 2023 and into 2024. I think they’re going to come down. That’s my main indicator. .But they probably will.” It will go down as fast as the markets want and probably the Fed wants,” Bullard said.

– Jesse Pound

Cryptocurrency prices fall, but recover quickly after BlockFi declares bankruptcy

The price of bitcoin fell on Monday after BlockFi officially announced that it is filing for Chapter 11 bankruptcy following the bankruptcy of FTX.

Bitcoin briefly fell to around $16,000, but has since rebounded. It was last above $16,300, down just 1%, according to Coin Metrics. The movement in Ether price showed a similar jump.

BlockFi has been in bad shape since the spring, following the implosion of the Terra project, which led to the implosion of Three Arrows Capital. At that time, the company accepted a bailout from FTX to help avoid bankruptcy. Of course, FTX is now managing its own bankruptcy.

– Tanaya Macheel

CNBC Pro: Goldman Sachs names global automakers hit by China slowdown

Many global companies, including the world’s largest automakers, are heavily exposed to China, which generates 20% to 40% of its worldwide sales in the country, according to Goldman Sachs.

In a note to clients in November. 22 – before the latest protests – the investment bank mapped the exposure of the global auto industry to Chinese consumers.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Stocks are down in Monday’s session

After a winning Thanksgiving week, the three major indexes closed lower on Monday as investors sold off amid growing concerns about supply chain disruptions amid Covid-related protests in China.

The Dow Jones Industrial Average It lost 1.45% or 497.57 points to close at 33,849.46 points. The S&P 500 also ended 1.54% lower at 3,963.94. The Nasdaq Composite It lost 1.58% and ended at 11,049.50.

– Alex Harring

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