China’s consumer price index for September came in flat, lower than a 0.2% climb which analysts polled by Reuters expected. China also reported a 2.5% decline for its producer price index, compared to Reuters’ estimates of a 2.4% drop. Some of the strongest action was in the bond market, where Treasury yields swung up and down several times. While the reports bolstered hopes the U.S. economy will avoid a deep recession, the strength underlying them could also add upward pressure on inflation. “The Arm IPO optimism and China’s further stimulus measures boosted sentiment across Asian stock markets,” said Tina Teng, markets analyst at CMC Markets APAC & Canada.
It guides the Singapore dollar against an undisclosed basket of currencies of its major trading partners, adjusting the pace of its appreciation or depreciation by tweaking the slope, width and center of the currency band. The Monetary Authority of Singapore does not disclose any detail relating to this band. JD.com shares tumbled to its lowest in a year, hit by a series of broker downgrades and target price revisions on the prospect of weaker retail growth for the Chinese e-commerce giant. Leading the index’s losses is e-commerce giant JD.com, which slumped as much as 12% to its lowest in a year. Hong Kong’s Hang Seng Index fell more than 2%, dragged by the consumer cyclicals sector.
- Funds can move through an informal, underground banking system known as “hawala,” the Bloomberg report said, which isn’t regulated and is largely contingent on faith.
- Still, those who choose to skirt the rules in order to move cash around are putting themselves at risk.
- In Japan, the Nikkei 225 slipped 0.55% to close at 32,315.99 and South Korea’s Kospi fell 0.95% to end at 2,456.15.
Inflation at the consumer level edged higher than expected in August, but high gasoline prices were the biggest driver. Oil prices have been climbing over the summer after Saudi Arabia decided to maintain production cuts. The nation could be on the verge of a “lost decade” similar to the one that slammed Japan’s economy in the 1990s, scholars say. That could bring on a debt deflation loop, Morgan Stanley strategists warned, a scenario where prices continue to free-fall while debt rises and economic growth stagnates.
It also said consumers lowered their expectations for inflation in the year ahead to 3.1%, which is the lowest reading since March 2021. The Fed pays attention to the consumer sentiment report, particularly on expectations for inflation. The uptick there could keep alive the possibility of another hike to rates by the Fed in December or January, said Bill Adams, chief economist for Comerica Bank. A report on Friday suggested sentiment among U.S. consumers, whose spending has been one of the main drivers keeping the economy out of a recession, may be waning. A preliminary reading from the University of Michigan said consumer sentiment weakened by more than economists expected, primarily because of increased worries about inflation.
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The move erased some of Wednesday’s declines, the price of oil still remains below Monday’s high and levels from late September, when WTI traded above $90 per barrel. A third report said prices getting paid at the wholesale level rose more last month than economists expected. That could be a discouraging signal for households if the higher-than-expected inflation gets passed on to shoppers at the consumer level. A third report on Thursday said prices getting paid at the wholesale level rose more last month than economists expected.
Crude has been climbing for months as oil-producing countries try to support its price by curtailing their supplies. Treasury yields initially jumped following Thursday’s reports on fears they could push the Fed to raise rates again or at least to keep rates higher for longer. But economists pointed out that much of last month’s acceleration in wholesale inflation was due to higher trading 212 forex broker review fuel prices, which can shift direction sharply and quickly. TOKYO — Asian shares advanced Friday, with solid gains for Chinese markets after the central bank eased the reserve requirements for banks to encourage more lending and prop up the slowing economy. Meanwhile, a closely-watched survey from the University of Michigan showed consumer sentiment slipped a bit in September.
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The consumer price index was flat on an annual basis in September, data from the National Bureau of Statistics showed. Other stocks dragging down the index include China Merchants Bank which fell 1.27%, while Ping An Insurance iq option overview lost 1.67%. “The Fed is still likely to remain on hold next week, but if the economy continues to surprise to the upside, all bets are off as to what they’ll do after their final two policy meetings of the year,” he said.
Investors are overwhelmingly betting that the Fed will hold interest rates steady when it closes a two-day meeting on Wednesday. They also expect the central bank could hold rates steady for the rest of the year. The Fed has said it remains willing to continue raising rates if it seems necessary to continue fighting inflation.
Hang Seng Index falls over 2%, dragged by consumer cyclicals
A brief rally in Chinese stocks fizzled out in Monday trading, a sign that China’s attempts to prop up its stock market are flailing as investors fret over the health of the nation’s economy. Wells Fargo rose 3.1% after it likewise topped analysts’ expectations for profit during the summer quarter. Bank customers continue to borrow, even at higher interest rates, as consumers put more and more expenses on their credit cards.
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Harker said the Fed can afford to stop hiking rates and see what happens, particularly with so many economic uncertainties out there. Besides the war in Gaza and oil prices, there are also worries about the effects of workers’ strikes across the country and Capitol Hill dysfunction that could result in another U.S. government shutdown. The Singapore central bank manages monetary review the no-spend challenge guide policy through exchange rate settings, rather than interest rates. Singapore’s central bank kept its monetary policy unchanged for a second straight meeting, maintaining the rate of appreciation of its Singapore dollar nominal effective exchange rate policy band. Stocks are fungible — that is, sellable — financial instruments representing ownership of a fraction of a company.
Experts say that those problems have been years in the making, thanks to China’s history of using short-term stimulus in its economy, which skates over its long-term demand issues. After the government unveiled new measures meant to revive the ailing property market, the CSI 300 turned positive. U.S. consumers are girding for inflation of 3.8% for the year ahead, up from 3.2% last month. While the Gaza region is not a major producer of oil, the fear is that the violence could spill into the politics around the crude market and eventually lead to disruptions in the flow of petroleum.
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China’s economy has endured broad headwinds over recent months stemming from its troubled property sector and the lack of post-pandemic rebound. According to a Bloomberg report on Sunday, wealthy Chinese citizens have been finding unusual, sometimes illegal ways to move money overseas to keep their cash safe amid the uncertainty. Exports fell by 6.2% last month from a year ago, less than Reuters’ forecast of a 7.6% drop. Similarly, imports also fell by 6.2% in U.S.-dollar terms in September compared to a year ago — slightly more than the 6% decline expected by the Reuters poll. Ignoring those and other particularly volatile prices, underlying inflation trends in Thursday’s report were closer to economists’ expectations. Further boosting sentiment, the government reported Friday that China’s industrial output rose 4.5% in August from a year earlier, up from 3.7% in July.
Stronger economic growth, accelerating government spending and a bottoming out of inflation are just some reasons why many analysts are bullish on India — and asset management firm AllianceBernstein is no exception. The reading came in below expectations of a 5.5% increase by economists polled by Reuters, and still remains above central bank’s target of 4%. India’s inflation data rose 5.02% year-on-year for September, easing to a three-month low on the back of lower vegetable prices. China’s producer price index fell 2.5% from a year earlier, weaker than economists’ expectations for a 2.4% decline.