Japanese Yen gains small gains after Powell’s comments
Temasek’s $245m FTX loss ‘damages reputation’ for Singapore, says deputy PM
Singapore’s Deputy Prime Minister Lawrence Wong, State Sovereign Fund’s investment losses of $275 million in collapsed crypto exchange FTX “caused disappointment and reputational damage” to the city-state.
But Wong said the loss of investment does not mean the management system is dysfunctional, and an internal review is being conducted.
“Rather, it’s the nature of investment and risk-taking,” he said.
The loss of FTX will not affect the net investment returns of Singapore’s reserves, which are “tied to the overall expected long-term returns of our investment companies, not individual investments,” he said.
Going forward, Singapore plans to require crypto service providers to implement basic investor protection measures, but “no amount of regulation can eliminate this risk,” he warned.
– Sheila Chiang
China’s Caixin manufacturing PMI marks fourth monthly contraction
of China Caixin/Markit Manufacturing Purchasing Managers’ Index November came in at 49.4, beating expectations of 48.9 in a Reuters poll of economists.
After falling to 49.2 from October and 48.1 in September, it marked the fourth straight month of contraction — below the 50 points that separates growth from contraction.
Separately, the Official PMI print China’s National Bureau of Statistics said it came in at 48 on Wednesday, marking the second consecutive monthly contraction in factory activity.
– Jihye Lee
Oil prices were little changed as the White House weighed additional oil reserves
The White House is It is considering building additional oil reserves Against the backdrop of the upcoming winter and uncertainty surrounding the market, sources familiar with the matter told CNBC.
The Biden administration is weighing whether to call on Congress to raise the savings limit, doubling it, to build additional reserves that the administration could release if supplies tighten or prices rise again, the people said.
The US currently has about 1 million barrels of heating oil in New York and Connecticut.
The White House is bracing for a possible price hike as Europe’s oil embargo and the G-7’s looming price cap on Russian oil have the potential to disrupt supplies.
– Kayla Dash, Lee Ying Shan
CNBC Pro: Forget Amazon. Here’s what top tech investor Paul Meeks is buying
Investor confidence in the tech sector has been shaken this year amid a flight to security, but top tech investor Paul Meeks said the sector is “more upbeat” now than it has been in recent months, despite his pick.
He tells CNBC the stocks he likes.
Pro subscribers can Read more here.
– Javier Ong
South Korea’s revised GDP confirms growth in third quarter
of South Korea Revised Gross Domestic Product It confirmed growth of 3.1% in the third quarter – compared to the same period a year ago – higher than the 2.9% expansion seen in the second quarter.
The economy saw a slower quarterly growth of 0.3% in the third quarter, following growth of 0.7% in the previous quarter.
Separately, South Korea declared a trade deficit $7.01 billion in November, beating expectations of $4.42 billion — marking the third consecutive month of a trade deficit driven by sluggish exports.
Exports shrank 14%, less than forecasts of an 11% drop – while imports rose by a better-than-expected 2.7%, according to preliminary data from the customs agency.
– Jihye Lee
CNBC Pro: UBS reveals 15 global stocks sensitive to China’s reopening plans
Chinese stocks rose this week after the country’s health authorities announced a recent hike in vaccination rates, which experts see as key to reopening the country.
The impact of Beijing’s shift in handling the Covid-19 outbreak is being felt not only in China, but around the world.
Swiss bank UBS identified 15 stocks MSCI Europe Index It would do well “in an environment where China’s growth rebounds and the country reopens its borders.”
– Ganesh Rao
Powell continues to believe the path to a soft landing
Federal Reserve Chairman Jerome Powell says he continues to believe the path to a “soft” landing — even if the path has narrowed over the past year.
“I want to continue to believe there is a path to a soft or soft landing,” Powell said at the Brookings Institution.
“Our job is to try to achieve that, and I think it’s still achievable,” Powell said. “If you look at history, it’s not a likely outcome, but I would say it’s a weird situation.”
– Sarah Min
Symbols jump on Powell’s comments
Fed Chairman Jerome Powell’s comments after putting upward pressure on the three major indexes in December indicated that the central bank would reduce future interest rate hikes.
The S&P 500 rose 0.6% since the red on the news.
The Dow It was near the plateau after most of the day’s trading.
The Nasdaq Composite Up to 1.3% vapor was obtained.
– Alex Haring
Powell says the Fed could “moderate the pace” of future rate hikes because of the lagged effect of past hikes.
Federal Reserve Chairman Jerome Powell told an audience at the Brookings Institution on Wednesday that the central bank could dial back its tight monetary policy at its December meeting (which ends on December 14).
The lagged effect of higher rates already taken in 2022 and the shrinking of the Fed’s balance sheet through quantitative tightening means that “as we approach our control level, it makes sense to moderate the pace of our rate hikes. Enough to reduce inflation,” Powell said.
“The time to moderate the pace of rate hikes may come after the December meeting,” the 69-year-old Fed chief said.
In response to Powell’s comments, the S&P 500 quickly rose to 3950 versus around 3970 before the address.
– Scott Schnipper, Jeff Cox