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☆ Dollar gains, yuan slides as China's COVID unrest spooks markets
▼ + stars: | 2022-11-28 | by ( Rae Wee | Ashitha Shivaprasad | ) www.reuters.com time to read: +3 min

[1/2] Banknotes of Chinese yuan and U.S. dollar are seen in this illustration picture taken September 29, 2022. REUTERS/Florence Lo/Illustration/File PhotoSINGAPORE, Nov 28 (Reuters) - The dollar climbed on Monday as protests against COVID restrictions in China rattled financial markets, sending the yuan sliding and pushing nervous investors toward the safe-haven greenback. The offshore yuan fell to an over two-week low in Asian trading, and was last roughly 0.6% lower at 7.24 per dollar. The Australian dollar , often used as a liquid proxy for the yuan, slid more than 1% to $0.6687. The stringent COVID restrictions have taken a heavy toll on China's economy, and authorities have implemented various measures to revive growth.

☆ People are a little bit nervous going into Jay Powell's Wednesday speech, says Jefferies' David Zervos
▼ + stars: | 2022-11-28 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailPeople are a little bit nervous going into Jay Powell's Wednesday speech, says Jefferies' David ZervosDavid Zervos, Jefferies chief market strategist, joins 'Closing Bell' to discuss hawkish Fed statements and how the markets are responding.

☆ Experts explain why a Russian oil price cap might fall flat and instead give Putin's biggest crude customers a boost.
▼ + stars: | 2022-11-28 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

That day marks the beginning of a price cap on Russian oil, as well as a new European Union ban on seaborne Russian crude imports. "What it suggests is that Russian buyers are able to negotiate very favorable terms from Russian oil companies, who have to sell in order to maintain operations," Brew said. Because of that, it's possible that the West's price cap plan will end up falling flat, with the most noticeable result being customers in Asia bidding lower prices for Russian oil. But there's no guarantee European companies even want to handle any Russian oil at all. Nonetheless, oil markets are unlikely to react dramatically to the price cap, in Gallarati's view.

☆ Dow sinks 500 points as China protests and hawkish Fed comments rattle markets
▼ + stars: | 2022-11-28 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

Stocks sank on Monday as protestors in China and hawkish comments from Fed officials weighed on the market. Unrest over China's zero-COVID policy could exacerbate supply-chain issues, which are partly responsible for rising inflation. St. Louis Fed President James Bullard added the US had "a ways to go" on rate hikes before claiming victory on the inflation front. Anger over China's zero-COVID policy has sparked turmoil across the nation, with protests threatening to exacerbate supply-chain issues in the global economy. Experts say the protests could fuel US inflation, as supply-chain issues have been a major driver of high prices so far.

☆ Dollar gains, yuan slides as China's Covid unrest spooks markets
▼ + stars: | 2022-11-28 | by ( ) www.cnbc.com time to read: +3 min

The dollar climbed on Monday as protests against Covid restrictions in China rattled financial markets, sending the yuan sliding and pushing nervous investors toward the safe-haven greenback. Worries over the unprecedented wave of civil disobedience in a country where in-person protests are rare, the rising Covid cases, as well as how Beijing will react to the situation kept investors on edge. The offshore yuan fell to an over two-week low in Asian trading, and was last roughly 0.6% lower at 7.24 per dollar. The Australian dollar , often used as a liquid proxy for the yuan, slid more than 1% to $0.6687. The stringent Covid restrictions have taken a heavy toll on China's economy, and authorities have implemented various measures to revive growth.

☆ The stock market could soar to new records in another 1982-style vertical rally as inflation continues to ease, Fundstrat says
▼ + stars: | 2022-11-23 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Stocks could rise abruptly and cause the S&P 500 to hit 4,400-4,500 by the end of the year, Fundstrat's Tom Lee said. Lee also noted that inflation was being fueled by several transitory pressures, such as supply chain issues and "revenge" spending. In 1982, the S&P 500 rebounded so sharply that in just four months it recovered from a 27-month bear market, he pointed out in a note on Tuesday. In his view, it could cause the S&P 500 to rally to 4,400 to 4,500 by the end of the year — a 12% rise from current levels. He's previously said the S&P 500 could rally to another all-time high of 4800 by the end of the year, before revising that prediction downward.

☆ Gold bound for weekly decline on hawkish Fed cues
▼ + stars: | 2022-11-18 | by ( ) www.cnbc.com time to read: +2 min

One kilo gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. Gold prices edged up on Friday on a pullback in the dollar but were still bound for their first weekly decline in three, weighed down by signals from U.S. central bankers that more interest rate hikes were on the way. Spot gold rose 0.1% to $1,763.17 per ounce by 0303 GMT, en route to a weekly decline of about 0.4%. Offering some respite to gold, the dollar index, a rival safe haven, inched lower, making bullion cheaper for overseas buyers. Among other metals, spot silver rose 0.8% to $21.11 per ounce, platinum added 0.4% to $984.50, and palladium XPD= climbed 0.7% to $2,020.21.

☆ Home prices could fall faster if once-reluctant sellers flood the market with more supply before the downside worsens, economist says
▼ + stars: | 2022-11-18 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

Previously reluctant home sellers could flood the market with inventory before prices decline further, he warned. "We think prices need to drop by about 20% from their spring peaks in order to reach a sustainable level," he said. So far, the inventory of existing homes has crept up to 3.2 months' worth of sales in October from 1.5 months' worth in January. "That trickle of supply could quickly become a flood, though, increasing the speed — if not the ultimate depth — of the decline in home prices," Clancy said. "We think prices need to drop by about 20% from their spring peaks in order to reach a sustainable level."

☆ US stocks defy rising yields to close higher, but cap a mixed week for major indexes
▼ + stars: | 2022-11-18 | by ( Jason Ma | ) www.businessinsider.com time to read: +1 min

US stocks climbed Friday as investors digested strong earnings from the likes of Ross Stores, Palo Alto Networks and Gap. For the week, the Dow was roughly flat, with the S&P 500 lost about 0.8%, and the Nasdaq fell 1.8%. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. For the week, the Dow was roughly flat, with the S&P 500 lost about 0.8%, and the Nasdaq fell 1.8%. "To attain a sufficiently restrictive level, the policy rate will need to be increased further."

Several other Fed officials in recent days have also stressed the need to continue raising rates, albeit at a slower pace. "The Fed is trying to make sure the market doesn't get too ahead of itself," said Tim Holland, chief investment officer at Orion Advisor Solutions. "They're trying to walk this rhetorical tightrope where in between meetings and big data points, they're reminding the market that they're still tightening." Traders are now pricing in 89% odds of a 50-basis-point rate hike from the Fed in December and see terminal rate at around 5% in June 2023. The S&P index recorded no new 52-week high and one new low, while the Nasdaq recorded 12 new highs and 101 new lows.

The greenback has been falling in recent weeks as inflation data and Federal Reserve commentary implied that it could soon slow the pace of its interest rate hikes. "We had a short covering euro rally and dollar sell off that's probably run its course now. The euro was last down 0.56% against the dollar at $1.0337 after falling as much as 0.86% earlier in the session. It was last down 0.95% at $1.18 after earlier falling as much as 1.25% in a move that one analyst said was largely driven by sentiment about the dollar. The greenback was last up 0.68% against the Japanese yen on Thursday to 140.4950 after falling earlier in the day.

Softer-than-expected inflation data in recent days had boosted expectations of smaller interest rate increases, but strong retail sales figures on Wednesday stoked fears that the Fed could keep tightening the monetary policy further. Several other Fed officials in recent days have also stressed on the need to continue raising interest rates, though at a slower pace. Wall Street closed the previous session lower as a grim outlook from Target Corp (TGT.N) sparked concerns about retailers heading into the crucial holiday season. ET, Dow e-minis were down 384 points, or 1.14%, S&P 500 e-minis were down 52.5 points, or 1.32%, and Nasdaq 100 e-minis were down 177.5 points, or 1.51%. U.S.-listed shares of Alibaba Group Holding Ltd fell 2.1% after the Chinese e-commerce giant posted a smaller-than-expected rise in quarterly revenue.

☆ Shares and pound splutter as UK dishes out budget gruel
▼ + stars: | 2022-11-17 | by ( Marc Jones | ) www.reuters.com time to read: +6 min

[1/3] Pound and Dollar banknotes are seen in this picture illustration taken June 13, 2017. Pound and UK Gilt recover from 'mini budget' turmoilOvernight in Asia, grim signals from Micron Technology about excess inventories and sluggish demand sent chipmaker stocks sprawling. Mainland Chinese shares also wobbled, with blue chips there (.CSI300) falling 0.5% having ripped 10% higher this month. Traders will also scrutinise speeches from Fed officials on Thursday for hints about rate hikes. Crude oil steadied in Europe after settling more than a dollar lower overnight, following the resumption of Russian oil shipments via the Druzhba pipeline to Hungary and as rising COVID-19 cases in China weighed on sentiment.

☆ Chip stocks hammered in Asia, dollar firms on hawkish Fed
▼ + stars: | 2022-11-17 | by ( Kevin Buckland | Yousef Saba | ) www.reuters.com time to read: +4 min

TOKYO, Nov 17 (Reuters) - Chip stocks took a beating on Thursday, sending most Asian share indexes lower, after grim signals from Micron Technology overnight about excess inventories and sluggish demand. Meanwhile, the U.S. dollar rebounded after stronger-than-expected U.S. retail sales suggested the Federal Reserve was unlikely to ease up in its battle with inflation. Hong Kong's Hang Seng Index (.HSI) tumbled 2.1%, with its tech stocks (.HSTECH) slipping more than 4%. Japan's Nikkei (.N225) lost 0.3% and South Korea's Kospi (.KS11) dropped 1.1%, each led by declines in heavyweight chip players. The U.S. dollar index - which measures the currency against six major counterparts - added 0.13% to 106.41, stabilizing after a slide as low as 105.30 on Tuesday following the release of producer price inflation numbers.

☆ Financial markets not showing too much stress, even as the crypto complex gets dismantled
▼ + stars: | 2022-11-17 | by ( Michael Santoli | ) www.cnbc.com time to read: +4 min

This is the daily notebook of Mike Santoli, CNBC's senior markets commentator, with ideas about trends, stocks and market statistics. But the point is, stocks have not been oblivious to slowdown risk to this point. Part of this is because energy firms are nicely profitable even at $75-$85 crude and are the rare group showing earnings growth. So far, the financial markets have not shown particular stress over the crypto unwind. Almost no movement in VIX, with modest index moves, expiration often pinning indexes in a narrow band and holiday-slowed trading ahead next week.

Banks struggled to find demand from junk-bond investors for $2.4 billion of secured bonds and loans that is part of the debt package after a weeks-long marketing effort, the sources said. It showed the challenges banks face to sell down highly leveraged debt this quarter as bond yields spiked in response to a hawkish Fed policy and recessionary fears. The source would not say whether that would mean re-offering the debt to investors at even juicier terms. The end result is the banks involved are digging into their own pockets to provide the whole debt for the Tenneco acquisition which closed on Thursday. So it's almost like investors have seen this cycle occur that makes them question the outlook of something like Tenneco," he added.

☆ Stocks fall as fears of more big Fed rate hikes resurface
▼ + stars: | 2022-11-17 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +3 min

The Dow was off about 30 points, or 0.1%, in midday trading following comments from St. Louis Fed President James Bullard about the possibility of much bigger interest rate hikes. Jefferson didn’t comment specifically about how much higher he thinks rates need to go though in order to get inflation in check. In addition, Bullard has a vote on rate hikes at the Fed’s next meeting in December, but he does not have a say on interest rates in 2023. The seven Fed governors and the New York Fed president are always on the FOMC. The St. Louis Fed president doesn’t get a vote again until 2025.

REUTERS/Octavio JonesNEW YORK, Nov 16 (Reuters) - Former President Donald Trump's entry on Tuesday into the 2024 presidential race confirmed the world's "worst kept secret" and created another variable for markets that some investors say remains a low priority for now. Trump's announcement, meanwhile, came as little surprise to investors, as the former president had telegraphed the possibility he might run again for some time. DIVIDED WE HURTUnlike during Trump's previous bid, the discord within the Republican party also worried some investors. The Republican president has claimed credit for the rise, tweeting often about Wall Street's performance. Both stocks rallied earlier this month on reports Trump was considering a third bid for the White House.

☆ Home price declines will accelerate even as sales bottom out early next year, economist says
▼ + stars: | 2022-11-16 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

The decline in home prices will accelerate even as sales are headed for a bottom early next year, according to Pantheon Macroeconomics. "The good news for homebuilders is that a floor is coming," Pantheon economist Kieran Clancy said in a note. "The good news for homebuilders is that a floor is coming," Pantheon economist Kieran Clancy said in a note. "Mortgage rates have peaked, suggesting that demand will flatten in the months ahead, albeit at an extremely depressed level. Accordingly, we expect housing starts and sales to bottom out early next year, even as the decline in home prices accelerates."

☆ Trump's 2024 presidential bid is a wrinkle du jour for markets
▼ + stars: | 2022-11-16 | by ( David Randall | ) www.reuters.com time to read: +3 min

REUTERS/Octavio JonesNEW YORK, Nov 15 (Reuters) - Former President Donald Trump's entry on Tuesday into the 2024 presidential race confirmed the world's "worst kept secret" and created another variable for markets that some investors say remains a low priority for now. Trump, who has mounted relentless attacks on the integrity of U.S. voting since his 2020 election defeat, announced his bid at his Mar-a-Lago estate in Florida, seemingly with the aim of pre-empting potential Republican rivals. Trump's announcement, meanwhile, came as little surprise to investors, as the former president had telegraphed the possibility he might run again for some time. Shares of Digital World Acquisition Corp (DWAC.O), the blank-check company looking to take Donald Trump's social media venture public, fell 8.8% on Tuesday, while software developer Phunware Inc (PHUN.O), which was hired by Trump's 2020 re-election campaign to build a phone app, slid 4.7%. Both stocks rallied earlier this month on reports Trump was considering a third bid for the White House.

☆ The US dollar has fallen to a 3-month low after easing inflation in October dampened expectations for more big rate hikes
▼ + stars: | 2022-11-15 | by ( Carla Mozée | ) www.businessinsider.com time to read: +4 min

The US Dollar Index dropped to a three-month low on Tuesday, dipping below 106. The Fed will likely slow rate hikes in December but a full-on Fed pivot remains elusive. The US Dollar Index fell by as much as 1.2% to 105.34, the lowest print since August 11. This builds on expectations that the Fed will slow the pace of rate hikes," Fiona Cincotta, senior financial markets analyst at City Index, wrote in a note. "I would instead look at these readings as a reason for the overall pace of US interest rate hikes to slow because inflation expectations are still at a sustained high level."

The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that the Fed could scale back its hefty interest rate hikes and helped drive a euphoric market rally. The S&P 500 in the previous session logged its biggest weekly percentage gain in about five months, while the tech-heavy Nasdaq (.IXIC) notched its best week since March. "The market is expecting the Fed to continue its hawkish rhetoric on rates. ET, the S&P 500 (.SPX) was down 17.25 points, or 0.43%, at 3,975.68, and the Nasdaq Composite (.IXIC) was down 115.13 points, or 1.02%, at 11,208.20. The S&P 500 information technology sector (.SPLRCT) was down 1.2% and among the leading sectoral decliners on the benchmark index.

The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that price pressures were easing and the Fed could scale back its hefty interest rate hikes. "The market is expecting the Fed to continue its hawkish rhetoric on rates," said Peter Cardillo, chief market economist at Spartan Capital Securities. Once they (Fed) raise rates at 50 (bps), there's a possibility that they might indicate slower rates." Traders now expect the Fed to hike interest rates in December by a half point, and expect terminal rate in the range of 4.75%-5.0% next year. ET, Dow e-minis were down 50 points, or 0.15%, S&P 500 e-minis were down 11.5 points, or 0.29%, and Nasdaq 100 e-minis were down 62 points, or 0.52%.

☆ Jim Cramer: Why the two-day rally to end last week is significant — and what to expect next
▼ + stars: | 2022-11-13 | by ( Jim Cramer | ) www.cnbc.com time to read: +8 min

You would just stay mum, enabling investors to expect another raise of 75 basis points, especially if retail sales this week come in above expectations. The best that can be said, though, is that the two days up to end last week seem significant — especially in light of the collapse of FTX. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

[1/2] Raindrops hang on a sign for Wall Street outside the New York Stock Exchange in Manhattan in New York City, New York, U.S., October 26, 2020. "At best it reduced the likelihood of a three-quarter point rate hike in December and brought it down to a half-point hike. ET, Dow e-minis were up 148 points, or 0.44%, S&P 500 e-minis were up 19 points, or 0.48%, and Nasdaq 100 e-minis were up 69 points, or 0.59%. Shares of megacap companies extended gains in premarket trading, with Alphabet Inc (GOOGL.O) up 0.8% after a near 9% surge in the previous session. Reporting by Shubham Batra, Sruthi Shankar and Devik Jain in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

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