Japanese department shops rise for the second day of trading on the Buffett rate
CNBC Pro: These 7 Global Stocks Defy Downtrend as Analysts Raise Price Targets
Investors are bracing for a potentially bumpy ride as corporate earnings season kicks off this week.
Analyst estimates point to a 6.8% decline in first-quarter earnings in comparison with the identical period last 12 months – which could be the largest drop since Q2 2020.
Despite these gloomy prospects, there are a number of stocks that appear to be defying the downtrend. CNBC Pro found the next seven stocks that appear to be going against the grain.
CNBC Pro subscribers can read more here.
— Ganesh Rao
The IMF recommends flexibility to the Bank of Japan in terms of yield curve control
The The International Monetary Fund advised in its latest financial stability report, said the central bank of Japan must have more flexibility in its plan to maintain the yield on its 10-year Japanese government bonds at around 0%.
“While allowing greater flexibility in yield curve control policies can have some repercussions on global financial markets, such a change will not be only warranted to satisfy monetary policy objectives, but may additionally help prevent abrupt policy changes at a later date that might have larger impacts collateral damage,” the IMF said.
The international organization added that changes to the present monetary policy could have a large spectrum of repercussions.
“Changes within the Bank of Japan’s yield curve control could affect international financial markets through three channels: foreign exchange rates, sovereign bond futures premiums and global risk premiums,” the IMF report said.
The yield on the 10-year JGB was 0.466% on Wednesday, oscillating across the upper limit of the yield curve control of 0.5%.
— Jihye Lee
Chicago Fed Chairman Goolsbee stresses the necessity for “caution” in politics
Chicago Federal Reserve Chairman Austan Goolsbee stressed the necessity for “caution and patience” in making monetary policy decisions.
Speaking on the Chicago Economic Club“I feel in times like this, of financial stress, the suitable monetary approach requires prudence and patience – to evaluate the potential impact of financial stress on the actual economy.”
Goolsbee noted that tighter credit conditions would help curb inflationary pressures, adding that the Federal Reserve’s monetary policy agenda is consistent.
“There isn’t a conflict between our current monetary policy and tighter credit conditions, especially in the event that they are part of strengthening the economic system; they will work in tandem to assist cool down inflation,” he said.
“But we also need to appreciate that this mix may hit certain sectors or regions in ways in which look different than if monetary policy had acted alone,” Goolsbee said.
— Jihye Lee
Kashkari of the Fed predicts that inflation within the US will approach 2% next 12 months.
Minneapolis Fed Chairman Neel Kashkari said he believes inflation within the U.S. economy will approach the central bank’s goal of 2% in 2024.
City Hall Speech at Montana State Universityhe added that he was “less optimistic” than the bond market, which is pricing in a recession that’s about to hit the US, and that markets are also seeing inflation fall faster than he expected.
He also stressed that he expects inflation to fall to the “middle three” by the tip of 2023.
The US consumer price index rose 6% year-on-year in February, in step with expectations. The March inflation report is resulting from be published overnight.
— Jihye Lee
India’s consumer price index is predicted to fall in March
India’s inflation is predicted to indicate a cool picture in March.
India’s consumer price index is predicted to extend by 5.8% year-on-year, down from 6.44% within the previous month, in accordance with a Reuters poll.
India’s central bank, the Reserve Bank of India, kept its key repo rates regular at 6.5% last week after six consecutive hikes.
Central bank governor Shaktikanta Das stressed last week that the move is a “pause, not a turn.”
— Jihye Lee
South Korea’s unemployment rate rose to 2.7 percent.
South Korea’s unemployment rate rose to 2.7% in March from 2.6% in February, government data showed.
The domestic labor market has shown some resilience over the past two months after the unemployment rate hit an 11-month high in December because the central bank sought to bring inflation down in a world tightening cycle.
The Korean won was 1,322.7 against the US dollar on Wednesday, trading at barely weaker levels, a day after the Bank of Korea decided to carry its benchmark rate of interest regular for the second straight 12 months.
Oil prices are rising as investors await the Fed’s decision to boost rates of interest
Oil prices rose during morning trading in Asia because the upcoming US inflation figures remain within the highlight as they might inform the Fed’s next move on rate hikes.
Brent crude futures rose 0.11% to $81.62 a barrel, while US West Texas Intermediate futures rose 0.15% to $85.74 a barrel.
– Lee Ying Shan
CNBC Pro: Citi just listed 4 latest picks, including Buffett-backed stocks it says could go up 70%
Citi just added 4 names to its advisable stock lists in light of market volatility.
A Wall Street bank has given a 70% raise to at least one firm – which can also be backed by Warren Buffett’s Berkshire Hathaway.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Japan’s producer price index is down while machine orders are up
Japan’s producer price index rose 7.2% in March in comparison with a 12 months ago, greater than expected growth of 7.1% but lower than the previous reading of 8.2% in February.
The month-to-month reading has not modified.
Machine orders rose 9.8% year-on-year in February, beating expectations for a rise of 2.9% and above the previous reading of 4.5%.
The reading fell 4.5% month-on-month in February.
— Jihye Lee
Williams of the Latest York Fed says the central bank will remain data dependent
“We now have to be data driven,” said Latest York Fed chairman John Williams of Yahoo Finance on Tuesday. “I’ll say one of the things we take a look at is credit conditions, but are we actually seeing signs of a decline in core inflation?”
Williams’ comments come a day before the discharge of the newest US inflation figures. Economists polled by Dow Jones expect the buyer price index to extend by 6% year-on-year. The Fed is now expected to boost rates of interest by 25 basis points next month.
— Fred Imbert
The IMF says the worldwide economy is headed for its weakest growth since 1990
The International Monetary Fund released its weakest forecast for global economic growth over the medium term in greater than 30 years on Tuesday.
The Washington-based institution said global growth is projected to be around 3% in five years.
“The worldwide economy is currently not expected to return to pre-pandemic growth rates within the medium term,” the Fund said in its latest World Economic Outlook.
— Sylvia Amara
Delay in information technology stocks
CNBC Pro: Morgan Stanley says this chip giant will likely be a long-term tech leader — and gives it a 30% lead
Semiconductor stocks are outperforming this 12 months, but Morgan Stanley sees one particularly as a pacesetter within the sector.
Pro subscribers can read more here.
— Zavier Ong
The chairman of the Chicago Fed is maintaining a tally of credit conditions
Chicago Fed Chairman Austan Goolsbee said on Tuesday he was maintaining a tally of credit conditions ahead of the central bank’s May meeting.
“Crucial thing on my mind before our next meeting in May is attempting to answer the credit query: is that this really a credit tightening?” he told the Chicago Economic Club. Concerns about credit conditions intensified after the collapse of Silicon Valley Bank and Signature Bank.
— Fred Imbert
Warren Buffett sold Taiwan Semi partly resulting from geopolitical tensions, Nikkei reports
Warren Buffett revealed in an interview with Nike that its decision to dump much of Taiwan Semiconductor recently was partly resulting from geopolitical tensions.
Oracle of Omaha sold 86% of its stake within the chipmaker within the fourth quarter. It just bought shares within the third quarter and made it Berkshire’s tenth-largest holding company.
Buffett said geopolitical tensions were “taken under consideration” within the divestment, the paper reported. He called the Taiwanese chip company well-run, but said Berkshire had higher places to place its capital.
— Yun Lee