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Meanwhile, Jefferies began coverage of Reddit with a buy rating and a price target of $90. Champine said the Federal Reserve lowering interest rates was a driving force for the price target changes. Analyst William Kerr initiated coverage of the pet ecommerce retailer with a buy rating and $38 price target. RBLX YTD mountain RBLX in 2024 — Alex Harring 5:50 a.m.: Citi says UPS is a buy Buy the dip on UPS shares, according to Citi. Analyst Ariel Rosa initiated the delivery giant with a buy rating and a price target of $162.

Persons: Jefferies, Laura Champine, Champine, Helene, Milton, Lowe's, — Alex Harring, Piper Sandler downgrades Blackstone Piper Sandler, Crispin Love, Love, Blackstone, Morgan Stanley, Sanjit Singh, Singh, Alex Harring, TD Cowen, William Kerr, Kerr, Benjamin Soff, Soff, Ken Gawrelski, Gawrelski, Roblox, Ariel Rosa, Rosa, — Fred Imbert, John Colantuoni, Colantuoni, EBITDA Organizations: CNBC, Wednesday, Citi, UPS, Capital, Federal Reserve, Blackstone, Industry, Deutsche Bank, New York Times, Amazon Logistics, Walmart Locations: Wells, China, Tuesday's

☆ Japan's top foreign exchange diplomat warns against speculative moves as yen falls
▼ + stars: | 2024-10-07 | by ( ) www.cnbc.com time to read: 1 min

People stand outside a money changer looking at the rates of the Japanese yen against foreign currencies, along a street in central Tokyo on April 29, 2024. Japan's top currency diplomat, Atsushi Mimura, issued on Monday a warning against speculative moves on the foreign exchange market as the yen fell below 149 per dollar. "We will monitor currency market moves including speculative trading with a sense of urgency," Mimura told reporters, reviving a verbal warning tactic that his predecessor, Masato Kanda, frequently used. Mimura declined to comment on the specifics of the current market situation.

Persons: Atsushi Mimura, Mimura, Masato Kanda Locations: Tokyo

☆ As forex markets await political shocks, one tipping point could lead to a 'catastrophic trade' that unwinds markets
▼ + stars: | 2024-10-05 | by ( Laila Maidan | ) www.businessinsider.com time to read: +6 min

The yen carry trade unwind in August led to a temporary market pullback and recovery. AdvertisementThe foreign exchange market has been eerily quiet since the yen carry trade unwind. Much of the moves from the yen carry unwinding witnessed in August happened at this layer, Barrett said. But what we've seen in the yen carry trade is only the beginning, Barrett said. "Now, you may not think that's a yen carry trade, but it's absolutely the purest yen carry trade because all of that pension fund money started off as yen," Barrett said.

Persons: —, David Barrett, allocators, unwinding, Barrett, It's, it's, Harris, David, Trump Organizations: Service, EBC Financial, Bank of, Bloomberg, Big Tech, Nvidia Locations: Bank of Japan, Japan

☆ Russia can rely on China for the yuan, but China can't rely on anyone else
▼ + stars: | 2024-10-04 | by ( Huileng Tan | ) www.businessinsider.com time to read: +5 min

Western sanctions have forced Russia to rely on the Chinese yuan for reserves and trade. China's financial system is deeply tied to the greenback, limiting diversification options. These include the entrenched role of the greenback in the global commodities trade and much larger foreign reserves than Russia, wrote Greene, a former senior advisor at the US Treasury. However, many CIPS participants are highly connected to the dollar financial system and potentially subject to the reach of US sanctions. The dollar is still kingIn short, China just can't copy Russia's sanctions-proofing playbook and is likely to continue orbiting around the dollar financial system in the near-term.

Persons: —, China —, Robert Greene, Greene, China's, It's, dollarization, James Lord, Morgan Stanley's, Michael Zezas Organizations: Service, Carnegie Endowment Asia, US Treasury, Patomak Global Partners, Federal Reserve Bank of Boston Locations: Russia, China, Beijing, Russia's, Ukraine

☆ Rates won't fall back to pre-pandemic levels as geopolitical conflict and supply chain issues create problems for world economies, BofA exec says
▼ + stars: | 2024-10-02 | by ( Kelly Cloonan | ) www.businessinsider.com time to read: +4 min

That's led the market to assume rates will fall to pre-pandemic lows, BofA's Bernard Mensah says. Yet, inflationary risks will likely keep rates elevated, Mensah says. Before the pandemic, in the decade following the Great Financial Crisis, interest rates remained at historical lows. Despite the Fed's apparent confidence that pricing pressures have eased, Mensah says a variety of inflationary risks will keep interest rates higher. Other analysts have also pointed to inflation risks from geopolitical conflicts.

Persons: That's, BofA's Bernard Mensah, Mensah, —, Bank of America's Bernard Mensah, Rowe Price, Tomasz Wieladek Organizations: Fed, Service, Federal Reserve, Bank of America's, Bloomberg Locations: US, China, England, Switzerland, Sweden, Canada, Mexico

It also raised its price target to $210 from $187, suggesting shares could rise more than 17% from Tuesday's close. He maintained his $2,400 price target, which implies 16.2% upside potential from Tuesday's close. Bank of America's Lorraine Hutchinson reiterated her buy rating while trimming her price target to $100 from $104. Deutsche Bank analyst Krisztina Katai also maintained her buy rating and inched down her price target by $3 to $92. He also lowered his price target on shares to $40 from $42, implying upside of just 5.2% over the next 12 months.

Persons: Baird, Davidson, Raymond James, Pavel Molchanov, Molchanov, — Hakyung Kim, FANG, Betty Jiang, Jiang, Diamondback, John Pancari, Pancari, Marcelo Santos, Santos, LatAm, Santo, Elliott Hill, Bank of America's Lorraine Hutchinson, Hutchinson, Krisztina Katai, Katai, Matthew Boss, Boss, Baird downgrades Harley, Craig Kennison, Harley, Kennison, Fred Imbert Organizations: CNBC, GE, General Electric, Barclays, Diamondback, Diamondback Energy, Endeavor, Endeavor Energy Resources, Management, T, T Bank, Federal Reserve, ISI, EA, JPMorgan downgrades, JPMorgan, MercadoLibre, Nike, Bank of, Deutsche Bank, Harley Locations: Tuesday's, Bank of America's, Hill

☆ Yen steadies, dollar slips as China reaches for stimulus
▼ + stars: | 2024-09-30 | by ( ) www.cnbc.com time to read: +3 min

Japanese 10,000 yen banknotes and U.S. one-hundred dollar banknotes are arranged for a photograph in Tokyo, Japan. The yen slipped about 0.4% to 142.75 per dollar after jumping 1.8% on Friday. European inflation data on Tuesday and Chinese data due later on Monday are also keenly awaited. The New Zealand dollar was up 0.3% at $0.6360 after hitting its highest since December on Friday. "The trend over next year or so is for the dollar to go down," said Commonwealth Bank of Australia strategist Joe Capurso.

Persons: Shigeru Ishiba, Ishiba, Ray Attrill, Joe Capurso Organizations: Liberal Democratic Party, NHK, Bank of Japan, National, New, New Zealand, U.S, U.S . Federal, Commonwealth Bank of Australia Locations: Tokyo, Japan, National Australia, China, U.S .

☆ The Chinese yuan surged to a 16-month high, but Beijing may not be happy about it
▼ + stars: | 2024-09-25 | by ( Huileng Tan | ) www.businessinsider.com time to read: +5 min

China's stimulus package has boosted market sentiment and pushed the Chinese yuan to a 16-month high. But a strong yuan could hurt exports, a key pillar of China's economy, amid weak domestic demand. AdvertisementChina's massive stimulus package for its battered economy has boosted market sentiment and injected confidence into the Chinese yuan. This means $1 could buy fewer Chinese yuan. A strong yuan is bad for exportsEven though a strong yuan signals confidence in China's economy, analysts aren't sure the gains will hold.

Persons: —, Pan Gongsheng, Vishnu, Varathan, Larry Hu, Hu, aren't, Pan, Macquarie's Hu Organizations: People's Bank of China, Service, US Federal Reserve, Macquarie Group, Lombard, Bloomberg Locations: Asia, Japan, China, Beijing, Swiss, China's

☆ The RBI has 'a problem of plenty' when it comes to its current account: JPMorgan
▼ + stars: | 2024-09-23 | 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 EmailThe RBI has 'a problem of plenty' when it comes to its current account: JPMorganSajjid Chinoy of JPMorgan says India's foreign exchange reserves has allowed it to have a degree of monetary policy independence and that in a polycrisis world, having "more is better".

Organizations: JPMorgan Sajjid, JPMorgan

☆ Marxist lawmaker leads the vote count in Sri Lanka's presidential election
▼ + stars: | 2024-09-22 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms | ) www.nbcnews.com time to read: +4 min

This is Sri Lanka’s first election since the Indian Ocean nation’s economy buckled in 2022 under a severe foreign exchange shortage, leaving it unable to pay for imports of essentials including fuel, medicine and cooking gas. Marxist-leaning Anura Kumara Dissanayake leaves a polling station after casting his vote in Sri Lanka's capital Colombo on Saturday. Grinding poverty for millionsButtressed by the IMF deal, Sri Lanka’s economy has posted a tentative recovery. The younger Premadasa polled 42% of the votes in 2019 to finish second, behind Rajapaksa, in the last presidential election. Support from farming communities in north and central Sri Lanka helped him close the gap on Dissanayake as counting progressed.

Persons: Kumara Dissanayake, Sajith Premadasa, Sri Lanka’s, Ranil Wickremesinghe, Dissanayake, Premadasa, Lanka’s, Gotabaya Rajapaksa, ”, Pradeep Peiris, ” Dissanayake, Eranga, Ranasinghe Premadasa, Rajapaksa Organizations: Sri, Sunday, University of Colombo, Monetary Fund, Marxist, IMF, National People’s Power, JVP Locations: “, Sri Lanka's, Colombo, Sri, Sri Lankans, Premadasa’s, Sri Lanka

☆ Sri Lanka's Marxist-leaning Dissanayake in early lead to become president
▼ + stars: | 2024-09-22 | by ( ) www.cnbc.com time to read: +3 min

A man waves Sri Lanka's national flag after climbing a tower near presidential secretariat in Colombo on July 11, 2022, after it was overrun by anti-government protestors. (Photo by ARUN SANKAR/AFP via Getty Images)Sri Lanka's Marxist-leaning leader, Anura Kumara Dissanayake, grabbed a commanding early lead on Sunday in his bid to become the next president of the debt-ridden country seeking to elect a leader to bolster its fragile economic recovery. Dissanayake won about 53% of a million votes counted so far in the election, Sri Lanka's Election Commission data showed. "Though I heavily campaigned for President Ranil Wickremasinghe, the people of Sri Lanka have made their decision, and I fully respect their mandate for Anura Kumara Dissanayake." This was Sri Lanka's first election since the economy buckled in 2022 under a severe foreign exchange shortage, leaving the country unable to pay for imports of essentials including fuel, medicine and cooking gas.

Persons: ARUN SANKAR, Anura Kumara Dissanayake, Dissanayake, Sajith Premadasa, Ranil Wickremesinghe, Peremuna, Ali Sabry, Ranil Wickremasinghe, Kumara Dissanayake, Lanka's, Gotabaya Rajapaksa Organizations: Getty Images, Marxist, Sri, National, Power, JVP, International Monetary Fund, IMF Locations: Colombo, Sri Lanka's, Saturday's, Sri Lanka

☆ Sri Lankans elect Marxist-leaning Dissanayake as president to fix economy
▼ + stars: | 2024-09-22 | by ( ) edition.cnn.com time to read: +5 min

For me this is not a position, it is a responsibility,” Dissanayake told reporters after his victory which was confirmed after a second tally of votes. Dissanayake polled 5.6 million or 42.3% of the votes, a massive boost to the 3% he managed in the last presidential election in 2019. Anura Kumara Dissanayake of the National People's Power party leaves a polling station after casting his vote in Colombo, Sri Lanka, on Sept. 21, 2024. Grinding poverty for millionsButtressed by the IMF deal, Sri Lanka’s economy has managed a tentative recovery. Dissanayake ran as a candidate for the National People’s Power alliance, which includes his Marxist-leaning Janatha Vimukthi Peremuna party.

Persons: Kumara Dissanayake, Ranil Wickremesinghe, Sajith Premadasa, “, ” Dissanayake, “ Mr, ” Wickremesinghe, Dissanayake, Premadasa, Eranga, Gotabaya Rajapaksa, ”, Pradeep Peiris, Dissanayake’s, Janak Dias Organizations: COLOMBO Reuters, Marxist, National People's, Monetary Fund, University of Colombo, IMF, National People’s Power, JVP Locations: Lankans, Sri Lanka, Colombo, “, Sri

☆ Top Wall Street analysts find these stocks promising for the long haul
▼ + stars: | 2024-09-22 | by ( Tipranks.Com Staff | ) www.cnbc.com time to read: +6 min

Investors seeking stocks that can withstand short-term pressures and deliver over the long term should track the recommendations of top Wall Street analysts. Bearing that in mind, here are three stocks favored by the Street's top pros, according to TipRanks, a platform that ranks analysts based on their past performance. Recently, Baird analyst Colin Sebastian reiterated a buy rating on Take-Two Interactive stock with a price target of $172. He anticipates the mobile business will contribute around $3.1 billion, and catalog/live services will generate $2.5 billion in the full year. Benedict noted that the August comparable sales growth was sequentially steady compared to the 7.2% increase in July, as stronger traffic was offset by some moderation in average traffic growth.

Persons: Baird, Colin Sebastian, Max Payne, Sebastian, TipRanks, Peter Benedict, bullish, Costco's, Benedict, Doug Anmuth, Anmuth Organizations: Netflix, Wall Street, Costco Wholesale, Costco, JPMorgan Locations: Flora, TipRanks

☆ Heavily indebted Sri Lanka votes in election to decide economic future
▼ + stars: | 2024-09-21 | by ( ) www.cnbc.com time to read: +3 min

A man waves Sri Lanka's national flag after climbing a tower near presidential secretariat in Colombo on July 11, 2022, after it was overrun by anti-government protestors. Rathnayake, the head of Sri Lanka's election commission, told Reuters. Buttressed by a $2.9 billion bailout programme from the International Monetary Fund, Sri Lanka's economy has posted a tentative recovery but the high cost of living remains a core issue for many voters. "Use your vote wisely so Sri Lanka can continue its recovery and move forward towards a sustainable and prosperous future." Sri Lanka's ranked voting system allows voters to cast three preferential votes for their chosen candidates.

Persons: ARUN SANKAR, Ranil Wickremesinghe, Sajith Premadasa, Kumara Dissanayake, Sri, Gotabaya Rajapaksa, Ali Sabry, Lanka's Organizations: Getty, Citizens, R.M.L, Reuters, International Monetary Fund, IMF Locations: Colombo, Lanka's, Sri Lanka's, Sri, Sri Lanka

☆ China's yuan jumps to 16-month high, state banks step in to curb gains
▼ + stars: | 2024-09-20 | by ( ) www.cnbc.com time to read: +2 min

China's yuan rose to its strongest level in nearly 16 months on Friday on bets that Beijing will unveil fresh economic stimulus following a jumbo U.S. rate cut, though gains were capped by dollar buying from Chinese state banks. The onshore yuan strengthened to as much as 7.0420 per dollar, the firmest level since May 24, 2023, on track for a six-session rising streak. The Fed cut rates by a larger than usual 50-basis-points on Wednesday. On Friday, China's major state-owned banks were seen buying dollars in the onshore market to prevent the yuan from appreciating too fast. Prior to the market opening, the People's Bank of China set the midpoint rate at 7.0644 per dollar, its strongest in nearly 16 months.

Persons: recouping, Zhiwei Zhang, Yang Fan Organizations: Citic Securities, People's Bank of Locations: Beijing, China, U.S, People's Bank of China

☆ What a Fed rate cut could mean for the world
▼ + stars: | 2024-09-18 | by ( Jenni Reid | ) www.cnbc.com time to read: +4 min

watch nowThe U.S. Federal Reserve is on Wednesday heading for its first interest rate cut since the onset of the Covid-19 pandemic — and despite the move being widely forecast, global investors are braced for impact. Global impactA key concern is the pressure interest rate differentials put on currencies. Oil and other commodities, usually priced in dollars, often receive a boost with a rate cut as a lower cost of borrowing can stimulate an economy and increase demand. "Interest rate cuts reduce the cost of borrowing in U.S. dollars, thereby creating easier liquidity conditions for companies around the world," Quilter Cheviot's Richard Carter continued via email. That includes whether the initial cut will reduce the Fed funds rate by 25 basis points or 50 basis points below its current 525 to 550 range.

Persons: —, Richard Carter, Cheviot, Cheviot's Richard Carter Organizations: U.S . Federal, Turkish, U.S ., Fed, Federal, Equity Locations: U.S, Canada, Mexico, Switzerland, Sweden

☆ Dollar catches footing ahead of Fed
▼ + stars: | 2024-09-18 | by ( ) www.cnbc.com time to read: +3 min

The dollar steadied on Wednesday as stronger-than-expected U.S. retail sales had traders slightly trimming bets that the U.S. easing cycle will begin with an outsized interest rate cut. The Federal Reserve is expected to make its first interest rate cut in more than four years at 1800 GMT, which will be followed by a news conference half an hour later. A rate cut is fully priced, with interest rate futures implying a 63% chance of a 50 basis point cut, after flirting with 70% a day earlier. Traders say the Fed's tone as well as the size of the rate cut will drive the next moves in the foreign exchange market. China's stock, bond and currency markets resume trade on Wednesday after the mid-autumn festival break, though it is a holiday on Wednesday in Hong Kong.

Persons: Nathan Swami, Swami Organizations: Federal, Traders, Citi, Australian, New Zealand, Sterling, Bank of, ANZ Bank Locations: Buenos Aires, Argentina, Asia, U.S, Japan, Atlanta, Singapore, Hong Kong, Bank of England

☆ How Fed rate cuts affect the global economy
▼ + stars: | 2024-09-18 | by ( Carlos Waters | In Carloswaters | ) www.cnbc.com time to read: +4 min

The Federal Reserve's interest rate decisions can influence the trajectory of the U.S. economy. Changes to the Fed's interest rate can influence the cost of loan products such as mortgages and the value of cash, bonds and stocks. The Federal Reserve's decision to cut interest rate comes after months of shaky labor market data in the U.S. Fed decisions can also impact foreign exchange markets given their effect on the value of U.S. dollars, the global reserve currency. Economists at the Fed write that China's central bank has managed the value of the yuan to help the country achieve its goals on trade.

Persons: Gregory Daco, Federal Reserve Board they're, Reena Aggarwal, they've, Freya Beamish, Beamish Organizations: Federal, Market Committee, International Monetary Fund, U.S, European Central Bank, IMF, Federal Reserve Board, Georgetown, Psaros, CNBC, People's Bank of, Federal Reserve, TS Lombard Locations: U.S, EY, United States, People's Bank of China, China

☆ Check out these 11 U.S.-listed foreign stocks — which analysts give over 100% upside
▼ + stars: | 2024-09-11 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

The table below lists 11 stocks that analysts give over 100% upside potential in their local currency over the next 12 months. Investors should note that these stocks are exposed to foreign exchange fluctuations. Although the company has a primary listing on the Toronto stock exchange, the stock is also traded on U.S. stock exchanges . Valneva France-based Valneva has the second-biggest consensus upside potential on the list, at 213%. Stifel's price target of 9 euros ($9.94) a share indicates a 201% upside potential.

Persons: Desjardins, Frederic Tremblay, Canaccord, Katie Lachapelle, Meaghan, Valneva, Lyme, Christian Glennie, Evan Wang Organizations: CNBC Pro, Battery Metals, Valneva, Pfizer, Analysts, Guggenheim Securities Locations: U.S, Toronto, James Bay, Valneva France, Paris

☆ China's wealthy are increasingly looking overseas for business investment opportunities
▼ + stars: | 2024-09-06 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +6 min

Instead of high-net-worth individuals, C-suite executives in China are increasingly using business jets, said Paul Desgrosseilliers, general manager at ExecuJet Haite General Aviation Services. ExecuJet HaiteBEIJING — China's wealthy are increasingly looking for ways to move capital outside the mainland to pursue business opportunities, rather than just chasing investment returns, according to asset managers and consultants. The company's active overseas clients rose by nearly 63% year on year to 3,244. Overseas assets under management rose nearly 15% to $5.4 billion from a year earlier, while mainland China assets under management fell over 6% to $15.8 billion, according to Noah's quarterly earnings report. "What we are hearing from them is that the fastest growth in terms of interest from Chinese clients [occurred] in the post-Covid [period to] early last year."

Persons: Paul Desgrosseilliers, ExecuJet, there's, Ryota Kadogaki, Grant Pan, Noah Holdings, Noah, Kadogaki, Mu Chen, That's, Pan, ExecuJet Haite Organizations: General Aviation Services, Beijing Daxing, Monolith, Investors, Ministry of Commerce, CNBC, Noah Holdings, Beijing Daxing International Locations: China, Beijing, BEIJING, Japan, Mainland China, Singapore, Hong Kong, Southeast Asia, East, Africa, Asia Pacific

☆ The big ‘carry trade’ unwind is far from over, strategists warn
▼ + stars: | 2024-08-13 | by ( Sam Meredith | In Samuelmeredith | ) www.cnbc.com time to read: +5 min

watch nowEconomists have said it is difficult to accurately assess the scale of the yen carry trade, with estimates varying widely. Some analysts, using Japan's foreign portfolio investments, say the yen carry trade could total as much as $4 trillion, Reuters reported. "The real Japan strategy is not just a quick carry trade, borrowing at close to zero interest rates in Japan and investing in high yield assets. Analysts at Barclays said systematic selling pressure does not appear to have been exhausted yet and it's "too early" to call an all-clear to the carry trades unwind. We expect volatility to remain elevated, which should continue to hurt EM carry trades," the analysts at Barclays said in a research note published Sunday.

Persons: Kazuhiro Nogi, Richard Kelly, he'd, Kelly, CNBC's, Nogi, Jesper Koll, Koll, What's Organizations: Tokyo Stock Exchange, Afp, Getty, Bank of Japan, TD Securities, Reuters, TS Lombard, Bank of, The Bank of Japan, Federal Reserve, Monex, Barclays Locations: Tokyo, Japan, MEX, Brazil, Bank of Japan, U.S

☆ China economy: Young people in China aren’t spending on romance. That’s a problem
▼ + stars: | 2024-08-13 | by ( Chris Lau | Hassan Tayir | ) edition.cnn.com time to read: +7 min

“The Qixi Festival is not as robust as previous years. Couples attend a kissing contest during the traditional Qixi festival in Shenyang, northeast China's Liaoning province, on August 13, 2013. “The only part of the world where consumer confidence remains very low is China,” L’Oreal CEO Nicolas Hieronimus told analysts on an earnings call late last month. Lower-than-expected growth in the global beauty sector this year is largely a consequence of low consumer confidence in China, he added. People take photos at a bus stop decorated with flowers during Qixi Festival, or Chinese Valentine's Day, on August 22, 2023 in Chongqing, China.

Persons: China’s, Louis Vuitton, ”, forlornly, Huang Jinkun, Alfred Wu, Lee, “, Yeap Jun Rong, Xi Jinping, Peng Liyuan, Stringer, De Beers, That’s, Niulang, Nicolas Hieronimus, Joanne Wilson, didn’t, ” Mercedes, Ola Kaellenius Organizations: Hong Kong CNN, Weibo, CNN, Qixi, Lee Kuan Yew, of Public, National University of Singapore, Volkswagen, Ministry of Civil Affairs, Getty, Diamond, State Administration of Foreign Exchange, Global, WPP, China News Service, Mercedes, ” Mercedes Benz Locations: China, Hong Kong, Shenyang, Liaoning province, Beijing, China's Liaoning province, AFP, Chongqing

☆ Levels to watch on the yen, bond yields and Nvidia to know when this volatile market spell is over
▼ + stars: | 2024-08-12 | by ( Todd Gordon | ) www.cnbc.com time to read: +4 min

S & P down 5.50% here, headlines of a Nikkei crash, and another great Yen carry unwind happening. I traded for a hedge fund and served as senior technical analyst for an foreign exchange company during the great financial crisis of 2008 that saw a severe yen carry unwind. If the line is headed south the dollar is weakening relative to the yen, and the yen is strengthening relative to the dollar. I believe that the July 11th CPI print that came 0.1% below expectations was the culprit to this whole yen carry unwind. Could this yen carry unwind move further?

Persons: it's, Todd Gordon Organizations: Nikkei, Markets, Inside Edge, CNBC, NBC UNIVERSAL

On Thursday, investors in Asia will assess trade data from Japan and interest rate decision from the Reserve Bank of India. Global equities and currencies plunged earlier this week after the Bank of Japan hiked interest rates to their highest levels since 2008, and the U.S. released weaker-than-expected employment numbers. Asia-Pacific markets were mostly down in choppy trading on Thursday after U.S. stock benchmarks fell overnight, while investors assessed trade data from Japan and awaited India's rate decision. "Assuming that the price stability target will be achieved in the second half of fiscal 2025, the Bank should raise the policy interest rate to the level of the neutral interest rate toward that time," the summary read. Japanese technology investor SoftBank Group said in a statement on Wednesday that it would buy back up to 500 billion yen ($3.4 billion) of its shares as part of its efforts to boost shareholder returns.

Persons: Shinichi Uchida, Lasertec, Korea's Kospi Organizations: Reuters, The Reserve Bank of, Reserve Bank of India, Global, Bank of Japan, Dow Jones, Nasdaq, Nvidia, Nikkei, Bank, SoftBank, Semiconductor, Isuzu Motors, China's CSI, Cathay, Hong Kong's, Airbus Locations: The Reserve Bank of India, Asia, Japan, U.S, Pacific, Hong, Cathay Pacific

☆ Correction in the dollar-yen was overdue and may be 'healthy' for markets, former ECB chief says
▼ + stars: | 2024-08-06 | by ( Jenni Reid | ) www.cnbc.com time to read: +3 min

A carry trade involves an investor borrowing a currency with low interest rates and reinvesting it in higher-yielding assets elsewhere — taking advantage of that differential to make a financial gain. Investors piled into yen carry trades in recent years, attracted by Japan's low volatility and ultra-loose monetary policy. Global stock markets meanwhile plunged as "safe haven" assets such as the Swiss franc and U.S. Treasurys were bolstered. "You can't unwind the biggest carry trade the world has ever seen without breaking a few heads," Kit Juckes, chief foreign exchange strategist at Societe Generale, said in a Monday note. Trichet told CNBC Tuesday: "The correction can be seen as a healthy correction, in some respects.

Persons: it's, Jean, Claude Trichet, CNBC's, Treasurys, Kit Juckes, Trichet Organizations: European Central Bank, ., Bank of Japan, U.S, Global, Swiss, Societe Generale, CNBC, Federal Locations: France's, U.S, Europe, United States

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