Oil prices rise after industry report on US crude inventories falling
Oil prices rose on Wednesday as continued demand despite high rate hikes, industry reports showed a decline in US crude inventories, Reuters reported citing figures from the American Petroleum Institute released Tuesday.
Brent crude futures won $1.31, or 1.46%, to $95.87 a barrel, while American West Texas Intermediate rose 1.28% to $89.67 a barrel.
— Lee Ying Shan
South Korean and Japanese defense stocks rise after confirmation of North Korea missile barrier
Defense-related shares in South Korea and Japan soared after military authorities in Seoul confirmed that North Korea had fired more than 10 types of missiles off the east coast.
The missile barrage included a ballistic missile that landed in free waters on the South Korean side of the Northern Limit Line, a de facto maritime border dividing the two Koreas — the first time since the Korean War, the officials said. authorities.
Shares of defense companies Hanwha Aerospace were up more than 5% in morning trading in Korea, and Victek was up more than 7%.
Japanese defense stocks were slightly higher with Hosoya Pyro-Engineering up nearly 1%.
Bank of Japan board members discussed inflation, Kuroda hints at policy change ahead
Policy council members at the latest Bank of Japan meeting agreed that it is appropriate to “continue to pursue its wide-scale monetary easing,” according to minutes released Wednesday.
One member said the central bank’s easing rate should continue even if inflation accelerates in the near term, as long as expectations remain low.
The BOJ’s monetary policy focuses on price stability, not exchange rates, a few members said, and that it should “explain carefully” why the current stance should be maintained.
Some members said an increase in inbound tourism consumption was one way to take advantage of the weaker yen.
Separately, BOJ governor Haruhiko Kuroda is said to have told parliament that yield curve monitoring policies could be adjusted in the future, Reuters said.
“As we approach our 2% inflation target, making the yield curve more flexible could become an option,” Kuroda said.
— Abigail Ng
South Korea inflation rises in October, more than expected
South Korea’s consumer price index rose 5.7% in October from the same period a year ago, higher than average estimates of 5.6% predicted by a Reuters poll.
Data from Statistics Korea showed that prices rose 0.3% from the previous month.
Electricity, gas and industrial prices rose the most, and core inflation, excluding food and oil prices, rose 4.8% from a year ago.
CNBC Pro: Goldman’s Currie Reveals ‘Best’ Hedge Against Inflation, Rate Hikes and Geopolitical Risks
Goldman’s Jeff Currie says there is one investment that can protect investors from rising interest rates, inflation and geopolitical risks.
Currie, Global Head of Commodities Research at Goldman Sachs, said it has 20-30% growth potential in the near term, with additional upside risks to the price target.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Larger Chinese stocks rise after unconfirmed reports of reopening discussion
Stocks in Hong Kong and Mainland China collected Tuesday after unconfirmed reports circulated of a committee being formed to reopen discussions in China. Chinese Foreign Ministry spokesman Zhao Lijian told Reuters he was not aware of the situation.
“I don’t know where you got this information from. I really don’t know anything about this,” Zhao said.
Economist Hao Hong of Grow Investment Group tweeted that the rumor committee is reviewing data from multiple countries and aim for a reopening in March next year.
Stocks close lower
Shares ended lower as markets prepared for another Fed rate decision due Wednesday.
The Dow Jones Industrial Average fell 79.75 points, or 0.24%, to 32,653.20, while the S&P 500 fell 0.41% to 3,856.10. The Nasdaq Composite lost 0.89% to 10,890.85 points.
— Samantha Subin
A Fed pivot is far away, says New York Life’s Goodwin
According to Lauren Goodwin, economist and portfolio strategist at New York Life Investments, investors may be getting a little too excited about potential changes from the Federal Reserve.
Goodwin said in a note that she expected the Fed to increase by 0.75 percentage points on Wednesday and half a point in December, but the slowdown should not be seen as the start of a major shift by the central bank.
“A break from the Fed is not the same as a pivot. Sure, deteriorating economic and credit conditions may cause the Fed to run modestly at some point, but a full pivot in accommodative territory is highly unlikely next year,” Goodwin said. in a statement. Remark.
Goodwin pointed out that the first rate hikes should now begin to impact the entire economy, rather than just the housing market. However, the Fed will need several months of data to run its course before changing course.
“Right now, while inflation is as surprising as it has already been, the Fed will want to see clear signs of a reversal in wage growth before they reverse. A recession should be viewed as a baseline scenario rather than a risk.” said Goodwin.
— Jesse Pound