Indonesia will ban bauxite exports from June 2023
India’s central bank chief warns that the next financial crisis will come from private cryptocurrencies
The next financial crisis will come from private cryptocurrencies, Shaktikanta Das, the governor of India’s central bank, said on Wednesday.
Speaking at the BFSI Insight Summit 2022 organized by Business Standard, Das said he remains adamant that cryptocurrencies should be banned, adding that they have no underlying value and pose risks to macroeconomic and financial stability.
According to Coin Metrics, Bitcoin was last up 0.24% at $16,840. Ether rose 14% to $1,211.77.
— Charmaine Jacob
Japan’s 2-year yield briefly crosses zero for the first time since 2015
The yield on 2-year Japanese government bonds briefly rose above zero for the first time since 2015 in Wednesday morning trade. The note gained 2.7 basis points to be just below the flat line.
Japan’s 2-year yield rises above zero for the first time since 2015
The 10-year JGB yield rose more than 3 basis points to 0.451%, also hitting 2015 highs, while the 30-year JGB yield rose 2 basis points to trade – to 1.6%.
Yields move inversely to price and one basis point is equal to 0.01%.
– Jihye Lee
HKEX opens New York office as push to expand international reach
The Hong Kong stock market operator launched its New York office with the aim of expanding its international reach and growing its global customer base.
The new Hong Kong Exchanges and Clearing Limited (HKEX) office will promote its connectivity with mainland China markets and its liquid primary and secondary cash markets, he said.
“At HKEX, we are fully focused on supporting the growth ambitions of our clients around the world,” said Nicolas Aguzin, CEO of HKEX.
“We look forward to deepening our relationships with investors, companies and risk managers across the region, connecting capital with opportunity and East with West,” he added.
About 41% of the turnover in Hong Kong’s cash stock market is attributed to international investors. Currently, HKEX has offices in Beijing, Shanghai and Singapore.
– Lee Ying Shan
Tokyo bank shares rise again as broader index falls
The Japanese yen is the strongest in more than four months
The Japanese yen strengthened further overnight, after the Bank of Japan announced a widening of its yield curve control band.
The currency strengthened by more than 5% against the Australian dollar and the New Zealand dollar, while it strengthened by more than 3% against the US dollar.
The yen strengthened after the Bank of Japan announced it would widen its yield curve control band
CNBC Pro: Fund manager says a recession is ‘imminent’ and names cheap stocks to play it
Market watchers are increasingly worried about an impending recession, and fund manager Steven Glass is no exception.
Against this backdrop, he says he is focusing on companies with earnings visibility that trade at attractive valuations.
His picks include a Big Tech name he said is “extremely cheap” with “high margin potential.”
Professional subscribers can read more here.
— Xavier Ong
Stocks Hold Gains, Snap 4-Day Losing Streak
The stock turned a gain on Tuesday, snapping a four-day losing streak.
The Dow Jones Industrial Average rose 92.47 points, or 0.28%, to close at 32,850.01. The S&P 500 gained 0.11% to 3,821.73, while the Nasdaq Composite rose 0.01% to close at 10,547.11.
—Carmen Reinicke
The Bank of Japan is faster than expected
The Bank of Japan’s surprise policy shift sent interest rates higher globally as investors reacted to more evidence that central banks around the world will continue to push interest rates higher.
“It was definitely a surprise. I don’t think anyone expected it,” said Ben Jeffrey, rates strategist at BMO. Japan’s central bank acted sooner than expected to tighten policy. The BOJ changed its yield curve policy to allow the yield on the 10-year Japanese government bond to move 50 basis points to either side of its zero target rate, instead of 25 basis points.
The announcement sent rates higher around the world as Japanese government bond (JGB) yields rose to 7-year highs. Rates move inversely to yield. The US 10-year rose 3.68%.
“They were definitely the last to stay dovish, and they still are now, but less so,” Jeffrey said. “Obviously, it’s bearish JGBs and fixed income globally, but over the long term it should help the yen, which will make Treasurys more attractive to Japanese investors next year.”
–Patti Domm
Expect a tougher environment ahead, says Atlantic Equities
Analysts at Atlantic Equities foresee a more challenging context for the global consumer in 2023.
“Inflation may have peaked across the board, but input costs remain high and firms will be looking to at least maintain if not adopt higher prices in some cases,” analyst Edward Lewis said in a note. note tuesday “This may become more difficult as elasticity levels begin to normalize with US retailers starting to hold back on prices, in line with what European peers have been doing all year.”
He singled out Coca-Cola and Pepsi as some of his favorite consumer picks, citing “category momentum, continued investment and strong execution supporting high growth.”
– Tanaya Machel
The stock market has lost $11.7 trillion so far this year
It’s been a tough year for stocks, which are currently in a bear market and have been down year-to-date.
Since the market’s annual high on Jan. 3 through this morning, U.S. stocks have lost $11.7 trillion in market capitalization, according to Bespoke Group data.
“The maximum drawdown was $13.6 trillion at the low on Sept. 30, so we’ve seen the market cap increase by just under $2 trillion since then,” analysts wrote on Tuesday. “In dollar terms, this drawdown has been more extreme than anything investors have ever experienced. That’s pretty deflationary if you ask us!”
Of the $11.7 trillion, more than $5 trillion in losses came from just five companies: Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla.
—Carmen Reinicke