Oil prices rise more than a dollar ahead of the China briefing
Oil prices rose ahead of a press conference to be held by China’s State Council as investors continue to monitor developments – some of the losses seen on Monday, when it reached its lowest levels in nearly a year.
West Texas Intermediate futures rose 1.76% to $78.59 a barrel, while Brent crude futures rose 2.28% to $85.00 a barrel.
However, oil markets may “miscalculate news of China’s lockdown,” Rystad Energy wrote in a note.
“[The latest lockdowns’] the likely effect on China’s short-term demand for oil, particularly in transportation, is likely to be minor,” the note added, citing the company’s own research into real traffic activity in China.
Even as daily Covid cases continue to rise, cities like Shanghai have shown no slowdown in road traffic, according to Rystad Energy’s own research.
— Lee Ying Shan
Chinese indexes shoot ahead of Covid briefing
Indices in China rose more than 2% as investors closely watched developments in the country’s zero-Covid policy following losses in the previous session.
China’s CSI 300 index rose 2.97% during the morning session, while the Shanghai composite climbed 2.2%. The Shenzhen part Index gained 2.172%.
Local media reported that China’s State Council will hold a press conference on Covid measures at 3 p.m. local time or 2 a.m. ET.
The country saw a drop in daily infections for the first time in more than a week.
—Evelyn Cheng, Jihye Lee
Hong Kong-listed real estate stocks rise after China changes fundraising rules
Stocks related to Hong Kong-listed property developers rose after China’s regulator announced it would lift a ban on equity raising for the sector.
The China Securities Regulatory Commission announced five measures to support the real estate market, including the lifting of a multi-year restriction on developers selling shares to raise financing.
Cifi Holdings group jumped 13.01% in the first hour of trading, Rural garden also rose 13.36%, Logan group rose 10.23% and Longfor Group won 9.88%.
— Jihye Lee
Hong Kong on track for best month since April 1999
from Hong Kong Hang Seng index is heading for its best month since April 1999, when the index rose 21.85%.
The index was up more than 3% Tuesday morning and is up about 22% for the month of November, according to data from Refinitiv.
The HSI closed down 1.57% on Monday, its worst day in a week, as the Hang Seng lost 1.87% on Nov. 21.
–Gina Francolla, Jihye Lee
Japan’s unemployment rate remains unchanged, retail sales are missing estimates
According to official data, Japan’s unemployment rate was stable in October from its September reading of 2.6%. The figure is slightly higher than the average expectation of 2.5% from economists polled by Reuters.
The jobs-applicants ratio, which measures the number of active vacancies per job seeker, was 1.35. That indicates 135 jobs are available for every 100 applicants, indicating a still tight labor market in Japan.
The country’s retail sales rose 4.3% year on year in October, falling short of expectations of a 5% increase predicted in a separate Reuters survey.
The latest reading marks the first weakening in retail sales growth since June this year.
– Jihy Lee
Fed should continue to hike next year, says Bullard
James Bullard in Jackson Hole, Wyoming.
David A. Grogan | CNBC
James Bullard, president of the St. Louis Fed, said Monday that the Fed should continue to raise its benchmark rate in the coming months and that the market may be underestimating the likelihood that the Fed will need to become more aggressive.
“We will have to continue to pursue our rate hikes in 2023, and there is a risk that we will have to go even higher than [5%]Bullard said during a Barron’s Live webinar.
Bullard caused a stir in financial markets earlier this month when he said the Fed’s rate hikes have so far had “limited effects” on inflation and that the reference rate may need to rise to between 5% and 7%.
Bullard, who is a voting member of the FOMC, said the Fed will have to postpone rate cuts next year even if the inflation picture begins to show consistent improvement.
“I think we’re probably going to have to stay there through 2023 and into 2024, given the historical behavior of core PCE inflation or Dallas Fed-trimmed average inflation. They’re going to come down, I think. That’s my But they probably won’t fall as fast as the markets would like and probably the Fed would like,” Bullard said.
— Jesse Pond
Cryptocurrency prices fall, but recover quickly after BlockFi declares bankruptcy
Bitcoin’s price took a plunge on Monday after BlockFi officially announced it had filed for Chapter 11 bankruptcy in the wake of FTX’s bankruptcy.
Bitcoin briefly fell to a low of around $16,000 but has already recovered. According to Coin Metrics, it was down just 1% most recently to above $16,300. The action in the ether price showed a similar bounce.
BlockFi has been in a bad way since the spring, following the blowout of the Terra project that led to the implosion of Three Arrows Capital. At that point, the company accepted a bailout from FTX that would help it stave off bankruptcy. Of course, FTX is now managing its own bankruptcy.
— Tanaya Macheel
CNBC Pro: Goldman Sachs names the global automakers exposed to a growth slowdown in China
Many global companies are heavily exposed to China, including some of the world’s largest automakers, which according to Goldman Sachs generate between 20% and 40% of their global sales in the country.
In a note to clients on Nov. 22 — before the latest protests — the investment bank charted the exposure of the global auto industry to Chinese consumers.
CNBC Pro subscribers can read more here.
— Ganesha Rao
Stocks end Monday’s session lower
After a winning Thanksgiving week, the three major indices ended negative on Monday as investors sold off on mounting concerns about supply chain disruptions amid Covid-related protests in China.
The Dow Jones Industrial Average lost 1.45%, or 497.57 points, to close at 33,849.46. The S&P 500 also lost 1.54% to finish at 3,963.94. The Nasdaq composite fell 1.58% to end at 11,049.50.