Fed minutes, Bank of Korea decision, Sri Lanka

Bank of Korea raises rates by 25 basis points, meets expectations

The Bank of Korea raised its benchmark interest rate by 25 basis points to 3.25%, a smaller increase than its previous move and largely in line with expectations.

A Reuters poll of economists had expected such a move amid signs of slowing domestic growth.

The country’s inflation rate was 5.7% in October, according to the latest data released earlier this month, well above the central bank’s target of 2%.

BOK Governor Rhee Chang-yong will hold a press conference on the monetary decision later in the day.

– Jihye Lee

CNBC Pro: Asset manager says investors need to buy these high-volume stocks right now

According to Rob Lunn, chief investment strategist at asset manager Surevest, investors need to buy one large-cap right now.

He calls its CEO a “significant visionary.”

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While Luna has singled out one large-cap stock, he advised investors to generally reallocate to smaller names, citing two stocks he called “best of breed.”

CNBC Pro subscribers can read more here.

— Weizen Tan

Stocks rise for second day as Wall Street cheers Fed, signaling smaller rate hikes

Stocks rose for a second day in a row on Wednesday, as investors cheered minutes from the Federal Reserve that signaled a slower pace of interest rate hikes.

The Dow Jones Industrial Average rose 95.96 points, or 0.28%, to 34,194.06. The S&P 500 rose 0.59% to close at 4,027.26 and the Nasdaq Composite added 0.99% to 11,285.32.

Shares of Nordstrom fell 4.24% after the department store chain confirmed its forecast. However, Nordstrom beat earnings and sales estimates in its latest results, according to consensus estimates on Refinitiv. Tesla rose 7.82% after Citi upgraded the stock to neutral from sell. Deere rose 5.03% on higher earnings.

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-Carmen Reinick

CNBC Pro: Betting on UK supermarket, short-seller expects share price to fall nearly 50%

Investors in the British supermarket company will be in for more pain if the short seller’s prediction comes true.

The hedge fund currently has a £32.6m bear rating and expects the grocer’s shares to fall 44%.

The fund’s chief investment officer also believes the supermarket will attract new capital by diluting shareholders year-on-year to stay afloat in a challenging environment.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Fed minutes point to smaller rate hikes, stocks rise

Stocks rose on Wednesday afternoon after the minutes of the Federal Reserve’s November meeting were released. The report showed that the central bank sees progress in the fight against inflation and expects the pace of interest rate hikes to slow down in the future.

Also Read :  Dow jumps more than 300 points Monday ahead of U.S. midterm elections

“The majority of participants believed that a slowdown in the pace of growth would likely be appropriate soon,” the minutes said. “Uncertain lags and magnitudes of the impact of monetary policy actions on economic activity and inflation were one of the reasons why such an assessment was important.”

This means that the Fed will likely provide fewer rate hikes in December and the first months of 2023.

The market was buoyed by the news. The Dow Jones Industrial Average rose 130 points, or 0.38%. The S&P 500 rose 0.70%, while the Nasdaq Composite added 1.10%.

-Carmen Reinick

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