Asian markets are trading mixed as stress in the banking sector persists
37 minutes ago
The IMF says China’s economy is showing signs of strong recovery
Managing Director of the International Monetary Fund. Kristalina Georgieva said China is showing signs of robust economic recovery.
In remarks delivered at the 2023 China Development Forum, Georgieva said China’s economy is seeing a strong recovery, with the IMF’s January forecast putting China’s GDP growth at 5.2% – a significant increase of more than 2 percentage points from the 2022 rate.
“This matters to China and it matters to the world,”[ads1]; she pointed out, saying China is set to account for about a third of global growth in 2023.
The IMF’s analysis also noted a one percentage point increase in GDP growth in China, which on average could lead to a 0.3 percentage point increase in growth in other Asian economies.
“With such a solid recovery, China can now build on positive momentum and – through comprehensive policies – stay on the growth path towards convergence with advanced economies,” highlighted Georgieva.
— Lim Hui Jie
An hour ago
Fed’s Kashkari says bank stress brings US closer to recession
The recent banking turmoil could bring the United States closer to a recession, Minneapolis Fed President Neel Kashkari said in an interview with CBS’ Face The Nation.
“It definitely brings us closer right now, what’s unclear to us is how much of these bank strains lead to a widespread credit crunch,” he said when asked if the mid-sized bank crisis could have a real impact on the bank. economy. “And then that credit crunch, just like you said, would slow down the economy.”
He said Fed officials are monitoring the impact of the fallout from the banking sector “very, very carefully” and that the current system has the “full support” of the Federal Reserve.
“The US banking system is resilient and it’s healthy,” he said when asked about the stability of the banking system and its ability to control additional risks seen in California and New York.
“The banking system has a strong capital position and plenty of liquidity and has the full support of the Federal Reserve and other regulators behind it,” Kashkari said.
“I’m not saying all the stresses are behind us, I expect this process will take some time. But fundamentally, the banking system is healthy,” he said.
– Jihye Lee
38 minutes ago
CNBC Pro: ‘Sell to rallies’: Morgan Stanley says European banking sector ‘not as attractive as it was’
In the wake of the recent banking strains, Morgan Stanley has warned that the European banking sector is “not as attractive as it was” last week despite recent share price falls.
Strategists at the Wall Street bank also recommend 10 defensive stocks to own right now, while selling European banking stocks “into any material rally.”
CNBC Pro subscribers can read more here.
– Ganesh Rao
39 minutes ago
CNBC Pro: Rivian shares continue to hit lows. Here’s where Wall Street sees it going next.
Most electric car stocks are up this year, but Rivian is an exception.
The shares have reached their lowest level recently. Is Rivian just a cash-burning company, or does Wall Street see significant upside for the stock going forward? Here’s what they say.
CNBC Pro subscribers can read more here.
— Weizhen Tan
50 minutes ago
CNBC Pro: This is how you spot a good growth stock, according to a fund manager
“As a growth manager…how do you identify good growth companies?” fund manager Ian Mortimer told CNBC Pro Talks on Wednesday, as he shared his strategy for spotting stocks that outperform.
Mortimer manages the growth and innovation-focused Guinness Global Innovators Fund, which counts the likes of Nvidia and Microsoft among its holdings.
Pro subscribers can read more here.
— Zavier Ong
An hour ago
Hong Kong inflation in February is lower than expected at 1.7%
Hong Kong’s inflation rate eased to 1.7% in February on an annual basis, down from 2.4% in January and at the slowest pace since May 2022.
This was lower than expectations of 2.3%, and the city’s Census and Statistics Department said the biggest increases in the consumer price index were seen in electricity, gas and water at 20.7%, as well as alcoholic beverages and tobacco at 14%.
The biggest decline in inflation was for durable goods and basic food, with 2.1% lower and 0.6% lower respectively.
– Lim Hui Jie
An hour ago
Japan’s producer price index for services rose 1.8% in February
Japan’s producer price index for services rose 1.8% in February year-on-year, up from a 1.6% year-on-year rise in January.
Government data showed the reading marked the third consecutive month of accelerated gains.
The Japanese yen weakened slightly to 130.9 against the US dollar after the report.
Fri Mar 24, 2023 12:14 PM EDT
Deutsche Bank’s U.S.-listed shares pare losses
Deutsche Bank’s US-listed shares fell 4.3% in midday trade, pulling off lows. Bank shares earlier fell 14% after the German lender’s credit default swaps jumped, with no apparent catalyst.
Investors’ concerns about the health of the European banking industry eased somewhat after European Central Bank President Christine Lagarde said eurozone banks are robust with strong capital and liquidity positions. Lagarde said the ECB could provide liquidity if needed.
Meanwhile, JPMorgan defended Deutsche Bank, saying on Friday that investors should focus on the European bank’s “solid” fundamentals.
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Deutsche Bank shares 1 day
Fri Mar 24, 2023 1:23 PM EDT
Stocks that make the biggest movements of the day
Here are some of the names making the biggest moves mid-day:
GameStop — The famous meme stock rose 2.5% in midday trading. The stock has been active since reporting its first profitable quarter in two years earlier this week.
the German bank — The German lender’s US-listed shares fell 5%, studying off the bottom. Bank shares had fallen about 14% after the bank’s credit default swaps jumped without an apparent catalyst. JPMorgan defended Deutsche Bank on Friday, saying investors should focus on the European bank’s “solid” fundamentals.
Regeneron — Regeneron rose 2.2% after Jefferies upgraded the pharma stock to buy from hold and said its Dupixent drug, in development with Sanofi, could serve as the next big catalyst for the company.
To see more companies making moves during midday trading, read the full story here.
-Brian Evans
Fri Mar 24, 2023 9:54 AM EDT
Fed’s Bullard says policy responses have been ‘swift and appropriate’
St. Louis Federal Reserve President James Bullard said Friday that central bank policy should help limit cracks in the financial system.
“Continued appropriate macroprudence can contain financial stress, while appropriate monetary policy can continue to put downward pressure on inflation,” Bullard said in a presentation.
His comments echoed sentiments Wednesday from Fed Chairman Jerome Powell, who said rate hikes are aimed at inflation while special lending facilities will keep banks liquid.
Bullard called the Fed’s actions against the troubled banks “swift and appropriate.” He also noted that even with the financial turmoil, economic data has been stronger than expected, saying inflation has “declined recently.”
Presentation materials released with Bullard’s speech did not indicate a position on where prices should go from here. Markets are pricing in a strong possibility that the Fed will not hike when it meets again in May. Bullard is a non-voting member of the rate-setting Federal Open Market Committee.
-Jeff Cox
Fri Mar 24, 2023 9:45 AM EDT
Gold on pace to end the week higher
Despite seeing only modest gains in Friday’s session, gold is up 1.4% so far this week. If gold ends Friday’s session above its weekly flatline, it will mark the metal’s fourth straight winning week.
—Alex Harring, Gina Francolla
