Asia-Pacific markets are trading lower ahead of the release of the Fed Beige Book
Oil prices fall due to expectations of further interest rate increases and lower demand growth
The oil price fell on Wednesday after several Covid mitigations in China and expectations of more interest rate increases globally.
US West Texas Intermediate futures fell 1.45% to settle at $85.62 a barrel, while Brent crude futures fell 1.14% to $91.77 a barrel, erasing earlier gains following the latest OPEC+ meeting and its decision to to reduce production.
A Reuters forecast expects WTI to extend its downtrend to reach $83.17 a barrel.
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CNBC Pro: Tensions between Russia and Europe could spur a ‘bullish shock’ for oil markets
Oil and gas shares are set to get a boost from increased tensions over Russian gas supplies to Europe, according to an analyst.
Kenny Polcari, market strategist at SlateStone Wealth, told CNBC’s “Street Signs Asia” that investors should zoom in on big U.S. energy names that are also good dividend payers.
One stock he named is up 125% this year, and he says there is more “room to run.”
Pro subscribers can read more here.
— Weizhen Tan
Australia’s economy grows 0.9% in the second quarter
Australia’s real GDP grew 0.9% in the second quarter after rising 0.7% in the previous period, official data showed.
The Australian Bureau of Statistics said continued growth was supported by the first full quarter of reopened borders.
The data also showed the Australian economy grew 3.6% in the past year. The ABS said strong domestic demand as well as an increase in travel supported overall growth.
– Jihye Lee
CNBC Pro: This chip stock has convincingly beaten its peers this year — and analysts think it could go higher
After several years of market returns, semiconductor stocks have sold off sharply this year. But one share has emerged relatively unscathed from the market carnage. Not only has it outperformed its peers, it has beaten the S&P 500 by a country mile.
And analysts believe the stock could still go higher.
Pro subscribers can read more here.
— Zavier Ong
US Treasury yields reached their highest levels since mid-June
A bond selloff has lifted U.S. Treasury yields to their highest levels since mid-June as investors weigh what strong economic data means for the Federal Reserve’s future rate hikes.
The US 10-year Treasury yield rose as much as 3.353%, the highest level since June 16, when the rate reached 3.495%. Yield is inversely related to prices.
The yield on the US 30-year Treasury note hit a high of 3.484% and the US 5-year Treasury yield hit 3.334%, also both the highest levels seen since mid-June.
The 2-year yield also rose to a daily high of 3.535%, but that’s only the highest yield for the note since Friday.
– Carmen Reinicke
