Australia’s retail sales in April were flat, lower than expected
Australian retail sales were unchanged month-on-month in April, below the 0.2% increase expected by economists polled by Reuters and the 0.4% increase recorded in March.
Nonetheless, on a year-on-year basis, retail sales increased by 4.2%, government data showed.
AMP’s deputy chief economist, Diana Mousina, said the slowdown in retail spending reflects rising rates of interest in addition to high inflation resulting in lower consumer spending.
The newest reading “gives the RBA room to maintain rates of interest regular (and elevated) and assess the impact of previous rate hikes,” Mousina wrote in a Friday note.
She added that there was “no urgent need” for the RBA to lift the money rate at its next meeting in June and that she didn’t expect any further increases this cycle.
Mousina noted that while retail sales figures mainly reflect spending on goods, spending on consumer services has also been high, although each metrics are expected to slow in Australia in 2023.
She also identified that employment growth, home loans, constructing permits, retail spending, and consumer and business confidence indicators are weakening in Australia, with inflation declining without signs of a wage breakout.
– Lim Hui Jie
In Tokyo, core inflation rises fastest since April 1982
Core inflation within the Japanese capital increased by 3.2% year-on-year in May, government data showedslower than the three.5% increase recorded in April.
The Tokyo consumer price index excluding fresh food was lower than economists had predicted at 3.3% in a Reuters poll. Overall inflation also increased by 3.2%.
Tokyo’s Core Consumer Price Index, which excludes each fresh food and fuel costs, increased 3.9%the fastest year-on-year pace since April 1982, in response to government figures.
— Jihye Lee
Indonesia holds rates of interest for the fourth month in a row
Indonesia’s central bank kept its 7-day reverse repo rate at 5.75% for the fourth month in a row, while keeping the deposit rate at 5% and the lending rate at 6.5%.
Bank Indonesia said the choice was “in keeping with the monetary policy stance” to maintain core inflation throughout the ±1% range from 3% this 12 months and convey inflation back to the identical range within the third quarter of 2023.
The Indonesian consumer price index fell to 4.33% in April from 4.97% in March, while core inflation fell from 2.94% in March to 2.83% in April, well throughout the central bank’s goal range.
– Lim Hui Jie
CNBC Pro: A part of the market is overbought – but these 4 stocks are still overvalued, says top strategist
A few of the market is overbought, but Morningstar’s Dave Sekera says some stocks the corporate is optimistic about are still trading at a reduction to fair value estimates.
These include one tech giant and a significant US bank.
CNBC Pro subscribers can read more here.
— Weizhen Tan
CNBC Pro: Goldman Sachs says these three stocks are a minimum of 75% up – and considered one of them has AI at its core
Earnings season is over and Goldman Sachs has identified three stocks with strong upside potential.
The investment bank said investors focused on the health of the worldwide consumer in the primary quarter and offset post-pandemic growth with increased margins. Nonetheless, looking ahead, he expects investors to concentrate on large corporations with profitable business models.
Based on the outcomes of the primary quarter, Goldman expects the shares of three corporations identified by it to extend by greater than 75%.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Fed’s Collins says officials are “near” a pause in rate hikes
Boston Federal Reserve Chairman Susan Collins believes the central bank will stop raising rates of interest.
In a speech to alumni of Community College of Rhode Island on Thursday, Collins indicated she saw “signs of moderation” in inflation that would negate the necessity for future hikes.
“I feel we could also be at or near the purpose where monetary policy may hold off on rate of interest hikes. This will probably be a possibility to more fully assess the impact of the measures taken up to now and the general tightening of credit conditions on economic activity, she said in her prepared remarks.
Market prices have moved, nonetheless, and the Fed is now expected to lift by 1 / 4 of a percentage point by its July meeting.
—Jeff Cox
Biden, Congressional leaders are getting closer to an agreement to lift the debt ceiling
Congressional leaders and President Joe Biden were near a tentative agreement to lift the debt ceiling on Thursday, in response to a report Reuters citing people acquainted with the matter.
Progress between Biden and Speaker of the House Kevin McCarthy is restricted to $70 billion in discretionary spending, in response to the report.
— Brian Evans
Nasdaq Jumps 1.7% as Nvidia Jumps Earnings, Drives Tech Rally
The Nasdaq Composite and S&P 500 finished within the black on Thursday as tech stocks surged after Nvidia’s strong quarterly report.
Technologically advanced Nasdaq fell 1.71% to 12,698.09 while S&P increased by 0.88%, reaching the extent of 4,151.28. Dow Jones industrial average fell by 35.27 points, or 0.11%, to 32,764.65.
— Samantha Subin