Australia’s central bank expected to raise rates by 50 basis points, Reuters poll
A Reuters poll of economists expects the Reserve Bank of Australia to raise its benchmark interest rate by 50 basis points to 2.85%.
RBA board members said the case for a slower pace of rate hikes was growing, according to minutes of the September 6 meeting, when it raised its interest rate by 50 basis points.
Analysts at Nomura expect the central bank to raise rates by 40 basis points, “to convey the RBA’s view that it is nearing the end of rate hikes”.
Economists at Commonwealth Bank Australia see a 25 basis point hike more likely than a 50 basis point hike.
– Jihye Lee
The British pound rises on reports that the UK government will revive the cut in the top tax rate
The British pound rose on Monday morning on reports that the UK government will reverse plans to scrap the top rate of income tax.
Sterling gained 0.8% against the dollar to trade around $1.1250 shortly after 7am London time, returning the pound to levels seen before the announcement of the finance minister Kwasi Kwarteng of a series of widely criticized tax cuts on 23 September.
ANZ sees significant possibility of OPEC+ cut of up to 1m bpd
Ahead of an OPEC+ meeting on October 5, ANZ sees a “significant opportunity for a cut” of one million barrels per day, analysts at the firm said in a note.
This move is likely to be made “to counteract the excessive bearishness of the market”.
The note added that any production cut below 500,000 barrels per day, however, would be “dismissed by the market”.
– Jihye Lee
CNBC Pro: Investment Pro Says ETFs Are a $10 Trillion Opportunity, Reveals Areas of ‘Tremendous’ Value
Exchange-traded funds offer the benefit of diversification, says Jon Maier, chief investment officer at Global X ETFs. He said the ETF market is “exponentially growing” and estimates it’s worth $10 trillion.
Name several opportunities for ETF investors in this volatile market.
Professional subscribers can read more here.
— Xavier Ong
Business confidence among major Japanese manufacturers worsens
Sentiment among major Japanese manufacturers worsened in the July-September quarter, according to the Bank of Japan’s latest quarterly tankan business sentiment survey.
The main index of sentiment among major manufacturers came in at 8, down from the previous quarter’s reading of 9. Economists polled by Reuters had expected a figure of 11.
“Our expectation and market expectations were that the manufacturing reading would pick up – supply conditions had improved, you’ve seen the supply impact fade from China’s zero-Covid policies, prices of raw materials went down a little bit,” said Stefan Angrick, a senior. economist at Moody’s Analytics.
“The fact that the manufacturing side of the economy is not doing so well is certainly not great for the outlook,” he told CNBC’s “Squawk Box Asia.”
But the non-manufacturing index rose slightly, which could mean Japan’s belated Covid recovery is getting under way, he added.
— Abigail of
Friday, September 30, 2022 at 7:06 PM EDT
CNBC Pro: The five global stocks experiencing the deglobalization trend, according to HSBC
New HSBC research says supply chains, geopolitical tensions and worsening financial conditions have forced many global companies to turn “substantially” inwards in search of resilient revenue and growth .
In a tough economic environment with recessionary pressures, the bank said turning inward is “probably helpful” for these stocks.
The report entitled ‘A wave of deglobalisation?’ said that overseas sales by European companies fell below 50% in 2021, the lowest level in five years.
Oil prices jump after OPEC+ production cut reports
CNBC Pro: Should Investors Run Away From Stocks? Strategists give their take and reveal how to trade volatility
With monetary policy tightening further in the coming months and Wall Street sinking deeper into a bear market abyss, many investors are beginning to wonder if now is the time to get out of the stock market and put their money in other asset classes.
CNBC Pro spoke with market watchers and polled investment banks to find out what the pros think.
Professional subscribers can read more here.
— Xavier Ong