Stocks fall, Chinese yuan crosses 7.2 against the dollar

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CNBC Pro: Credit Suisse says now is the time to buy two green hydrogen stocks – and give one more than 200% up

Credit Suisse says it’s time to enter the green hydrogen sector, with a number of catalysts that will power the clean energy powerhouse.

“Green hydrogen is a growth market – we are increasing our market estimates for 2030 by [over] 4x,” the bank said, predicting that green hydrogen production will increase by about 40 times by 2030.

It calls two stocks to play the tree – with an advantage of over 200%.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Chinese yuan at lowest point since 2008, dollar index strengthens

The offshore and onshore Chinese yuan crossed 7.2 against the dollar, remaining at its lowest level since early 2008.

The US dollar index also improved 0.33% to trade at 114.47.

Consumer inflation in Japan could fall in 2023: BOJ meeting minutes

Consumer inflation excluding fresh food is likely to rise this year, but after that the pace of energy price increases will slow, according to minutes from the Bank of Japan meeting in July.

Some members also said that inflation, excluding fresh food and energy, is unlikely to reach 2% over the projection horizon. That CPI value was 1.6% in August.

“These members believed that unless commodity prices continued to rise, CPI inflation was expected to decline from fiscal year 2023,” the minutes said.

On the yen, a BOJ board member said downward pressure on the currency could be eased if a slowdown in the global economy led to a decline in inflation and interest rates worldwide.

Another member said the yen could appreciate even if the global economy experiences shocks.

— Abigail Ng

CNBC Pro: Wealth Manager Reveals What’s Next for Stocks – And Shares How He’s Trading the Market

Neil Veitch, investment director at Edinburgh-based SVM Asset Management, says he expects the macro landscape to remain “quite difficult” for the rest of the year.

Speaking with CNBC Pro Talks last week, Veitch listed the key drivers that could help the stock market become “more constructive” and shared his view on growth versus value.

CNBC subscribers can read more here.

— Zavier Ongo

Profit questions, possible recession mean more to sell

The Dow and S&P 500 have fallen for six consecutive days, with many of them seeing broad sell-offs typical of so-called “washout” days.

That can sometimes be a contrarian buy signal on Wall Street, but many investment professionals are skeptical that the sale is over. One of the reasons is that earnings expectations for next year are still showing solid growth, which is unlikely in the event of a recession.

“We know that if we start to see a reversal in 2-year yields… and if we start to see a reversal in the dollar, that gives us the opportunity to recover from these extremely oversold conditions,” said Andrew Smith, chief investment strategist at Delos Capital Advisors in Dallas. “But I’m having a hard time reconciling in my mind that the earnings story will be as good as we expect.”

In addition, the dramatic moves in the bond and currency markets mean “something broke” and it may be smart to wait for that information to come out, Smith said.

On the upside, Smith pointed to a strong job market and signs of continued travel spending as a sign that the US economy could avoid a major recession.

— Jesse Pound

US 10-year yield approaches 4%

Ten-year government bond yields are approaching 4%, a level it has not reached since 2010.

The US 10-year yield is the benchmark yield that sets the price for mortgage rates and other consumer and business loans. It’s capped higher this week as UK government bonds race higher and on expectations of an aggressive Federal Reserve.

Returns stood at 3.96% in afternoon trading. The 10-year yield reversed a previous decline and gained about basis points. (A basis point is equal to 0.01 percentage point)

“It was absolutely impressive, and I just don’t think anyone is ready to step in and catch the falling knife,” said BMO’s Ben Jeffery. He added that a lack of liquidity has also pushed up yields, which are counter to price.

Jeffery said yields also moved higher ahead of the 5-year bond auction at 1 p.m.

He said the 10-year test tested the 4% level in 2010. “The last time we were above 4% sustainably was in 2008. There’s still a technical level of 4.10% and then it doesn’t matter much until 4.25%,” he said.

Patti Domm

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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