CPI inflation in Japan, Chinese prime lending rate, currencies
Hong Kong casino tech and stocks back broader index
Australia’s central bank says the argument for a slower rate hike is growing stronger
Reserve Bank of Australia (RBA) board members ‘saw the case for slowing the pace of interest rate increases as gaining strength,’ according to the minutes of its meeting. September 6, during which it raised its interest rate by 50 basis points. at 2.25%.
“The Council expects to raise interest rates further in the coming months, but it is not on a predefined path given the uncertainties surrounding the outlook for inflation and growth,” he said. he said in the minutes released on Tuesday.
He added that medium-term inflation expectations remained “well anchored”.
Future interest rate increases will be guided by inflation and labor market data and outlook, the RBA said.
CNBC Pro: Goldman Says Copper Demand Is About To Rise. Here are the actions he expects to benefit from
A copper shortfall could be on the horizon, with demand set to rise with the push to net zero – and some metals stocks could shine in this scenario, according to Goldman Sachs.
CNBC Pro subscribers can learn more here.
China keeps interest rates unchanged
The People’s Bank of China kept its prime rates on one-year and five-year loans unchanged, in line with forecasts from a Reuters poll.
The one-year prime rate remains at 3.65% and the closely tied five-year rate for residential mortgages is 4.3%. China cut both rates last month.
CNBC Pro: Fund manager says bear market will get ‘nasty’
Fund manager Cole Smead believes the stock market is still in the early stages of a bear market – and warns it won’t be a ‘garden variety’.
But he doesn’t lose sleep over it. Here’s why:
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— Zavier Ong
Core inflation in Japan picks up in August
Core consumer prices in Japan rose 2.8% in August from a year ago, according to government data.
It is the fastest growth in almost eight years and the fifth month in a row that inflation has exceeded the central bank’s 2% target.
Analysts polled by Reuters had forecast a 2.7% rise and consumer prices rose 2.4% in July.
The Japanese yen strengthened slightly to 142.96 to the dollar.
Stocks end Monday’s volatile session higher
Stocks tumbled on Monday but ended the session in positive territory as a big week for the Federal Reserve got under way.
The Dow Jones Industrial Average closed up 197.26 points, or 0.64%, to 31,019.68. The S&P 500 jumped 0.69% to 3,899.89 and the Nasdaq Composite gained 0.76% to 11,535.02.
— Samantha Subin
10-Year Treasury Yield Surpasses 3.5%, Hits Highest Level Since 2011
The benchmark 10-year Treasury yield hit 3.5% on Monday morning, hitting its highest level since 2011 as investors brace for a higher and longer interest rate spell amid the fight of the Federal Reserve against inflation.
Treasury yields rose above the bar last week after August’s Consumer Price Index report showed a surprise price rise. However, the 10-year largely held near its June highs of 3.495% before taking another leg higher on Monday.
The last 10-year traded at a yield of 3.506%, up almost 6 basis points. Yields move opposite to price and one basis point equals 0.01%.