South Korea inflation, US jobs report, China Covid-zero

Singapore, New York ranked the most expensive cities to live in: EIU

Singapore and New York have been ranked as the most expensive cities to live in this year, according to the Economist Intelligence Unit (EIU).

The EIU’s survey showed that the average price of goods in 172 major cities globally rose by 8.1% in local currency this year, citing a poll the organization conducted between August 16 and September 16.

The reading marks a significant increase from a price increase of 3.5% seen in the same survey that the organization carried out last year.

— Charmaine Jacob

India is poised to become the third largest economy by 2030

India is projected to overtake Japan and Germany to become the world’s third largest economy, S&P Global and Morgan Stanley predicted in a report.

S&P’s prediction is based on projections that India’s annual nominal GDP growth will average 6.3% through 2030. Similarly, Morgan Stanley estimates that India’s GDP is likely to more than double from current levels by 2031.

On Wednesday, India posted year-on-year GDP growth of 6.3% for the July-September quarter, beating Reuters polls of 6.2%.

– Lee Ying Shan

CNBC Pro: Citi Names 6 Global Stocks Capturing Both ‘Defensive Growth and Value’

Citi says investors don’t have to give up on growth entirely by shifting to a defensive portfolio of stocks ahead of a potential recession.

The investment bank named six global stocks that offer “low risk, quality and growth” together.

CNBC Pro subscribers can read more here.

– Ganesh Rao

South Korea’s November inflation misses expectations

South Korea’s annual inflation for November came in at 5%, lower than estimates of 5.1% surveyed in a Reuters poll.

The latest reading marks a slight decline from 5.7% in October and off a peak of 6.3% in July.

– Jihye Lee

CNBC Pro: BlackRock unit says it’s time for a new portfolio playbook, reveals how to position

BlackRock’s ETF division says the investment environment has fundamentally changed, which has “profound implications” for forward-looking portfolios.

In its 2023 investor guide, Blackrock’s iShares, one of the largest providers of exchange-traded funds in the world, said the shift brings “profound implications for portfolio construction”.

CNBC Pro subscribers can read more here.

— Weizhen Tan

“No one wants to be aggressively bullish” before new jobs data comes Friday, analyst says

Stocks failed to continue Wednesday’s rally as investors awaited a key jobs report this coming Friday, said Edward Moya, senior market analyst at Oanda.

He said investors were purposefully pulling back ahead of wages data that did not arrive tomorrow. Investors will also look for data on hourly wages and unemployment.

“U.S. stocks failed to hold on to earlier gains as Wall Street digested a slew of economic data that showed inflation slowing and the labor market cooling,” Moya said. “It’s been a nice turnout, but nobody wants to be aggressively bullish heading into the NFP report.”

Investors will be looking for the right middle ground data, said Megan Horneman, chief investment officer at Verdence Capital Advisors. This means that it is weak enough to show that interest rate increases are having the intended effect of economic decline, while being strong enough to signal that a recession can be avoided.

“A big number will further spook the markets that the Fed is not going to be able to slow the pace of rate hikes,” Megan Horneman, chief investment officer at Verdence Capital Advisors, said of Friday’s jobs data.

With “a so-so number, I think the markets might rally on that,” she added. “But if you get a really weak number, it’s just going to scare investors after such a strong rally we’ve seen in November.”

– Alex Harring

Indices come after the winning month

Thursday marked the first day of a new trading month as the market came off a winning November.

The S&P 500 and Dow each had their second straight month of gains, rising 5.38% and 5.67% respectively. The monthly streak was the first for each since August 2021.

The Nasdaq Composite increased 4.37%, which was the second positive month in a row. It was the first time the tech-heavy index had started a streak since it saw three consecutive months of wins that ended in December 2021.

– Alex Harring

The key inflation indicator rose less than expected in October

The Bureau of Economic Analysts reported that the Core Personal Consumption Expenditure Index, a key measure of inflation, rose 0.2% in October. This is less than the Dow Jones expected increase of 0.3 percent.

After the report, government yields fell on optimism over slowing inflation.

— Fred Imbert

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