Top US, Chinese diplomats discuss relationship, Russian war: State Department
US Secretary of State Antony Blinken spoke with Chinese Foreign Minister Wang Yi and discussed the “need to keep lines of communication open,” according to a State Department readout.
Blinken said he also discussed handling competition between the U.S. and China “responsibly,” without elaborating.
The State Department said Blinken raised the issue of Russia’s war against Ukraine and “the threats it poses to global security and economic stability,” the statement said.
– Jihye Lee
US dollar has more room to strengthen on rate spreads: Wells Fargo
According to Wells Fargo, the US dollar is expected to strengthen further due to rate differentials as central banks around the world are taking a “less hawkish” tone.
“We’re starting to see some of the foreign central banks … turn a little bit to the less hawkish side,” while the Federal Reserve maintains its hawkish stance, currency strategist Brendan McKenna said on “Squawk Box Asia” CNBC.
McKenna said he expects the dollar’s strength to continue through the first quarter of next year “at least.”
– Jihye Lee
Retail sales in Australia rose 0.6% in September
Australian retail sales rose 0.6 percent in September from August, official data showed, in line with expectations in a Reuters poll and the same pace reported in the previous monthly period.
Sales of clothing, footwear and personal accessories rose 2%, while cafes, restaurants and takeaways rose 1.3%.
The country’s retail volumes are released on Friday and ANZ Research expects quarterly growth of 0.4%.
“This would represent the slowest growth since Covid, but still solid for household spending given the shift from retail to services,” ANZ Research said in a tweet.
— Abigail of
Goldman Sachs expects Fed rates to reach 5%
Economists at Goldman Sachs expect the Federal Reserve funds rate to peak at 5%, after raising their forecast for the central bank to raise 75 basis points at its next meeting this week.
Economists led by Jan Hatzius said in a note on Saturday that they are adding another 25 basis points to their forecasts, now calling for a 50bp increase in December, a 25bp increase in February and another 25bp increase in March .
“Inflation is likely to remain uncomfortably high for some time, which could make continuing to increase in small increments the path of least resistance,” the note said.
– Jihye Lee
Macau gaming shares fall after casino lockdown over dealer’s Covid case
Hong Kong-listed Macau gaming shares fell sharply in early trade after a worker at MGM China’s Cotai casino tested positive for Covid, according to a government warning.
Multiple areas related to the case were placed on lockdown, another notice said, with the measures expected to be lifted between November 3 and 5.
MGM China shares fell 2.89%, Wynn Macau 2.62%, Galaxy Entertainment shares fell 1.85%. Shares of Sands China also fell 2.29%. SJM Holdings also fell more than 3%.
Factory activity in China eased in October, missing expectations
China’s factory activity slowed in October compared with September, data from the National Bureau of Statistics showed.
The official print for the manufacturing PMI was 49.2, missing expectations for a reading of 50, the mark that separates monthly growth from contraction.
In September, the PMI reading stood at 50.1.
China’s official non-manufacturing PMI stood at 48.7, compared with a 50.6 print in September.
— Abigail of
Japan’s industrial production falls for the first time in four months
Japan’s industrial output fell 1.6 percent in September from August, government data showed, a drop more than expectations for a 1 percent drop in a Reuters poll and ending a three-month growth streak.
The drop was led by motor vehicles, chemicals and production machinery, according to the statement.
A government survey forecasting industrial production figures predicts a decline in October, while an increase is seen in November.
– Jihye Lee
CNBC Pro: These 12 cheap global stocks are expected to rally, and analysts are loving them
Stocks around the world have sold off this year on fears of a recession and rising inflation, and now they look cheap.
Analysts say there could be buying opportunities in some stocks they expect to rally.
To find these stocks, CNBC Pro looked for names under the MSCI World Index that met a number of criteria.
CNBC Pro subscribers can read more here.
– Weizhen Tan
Currency Check: Japanese yen weakens beyond 148 levels
The Japanese yen weakened beyond the 148 level against the US dollar in morning Asian trade for the first time since last Wednesday.
The moves come ahead of the Fed’s policy meeting this week, where the central bank is expected to raise rates by 75 basis points, further widening the rate differential between the US and Japan.
The Japanese yen saw some strengthening to 146 levels last week ahead of the Bank of Japan’s monetary decision to keep rates steady, before climbing back towards 148 against the greenback.
It last stood at 148.23 per dollar.
— Abigail of
China’s factory activity for October is expected to be unchanged from September
China’s official purchasing managers’ index for October will be roughly flat from September, according to a Reuters poll.
The reading is expected to reach 50, the point that separates growth from contraction. PMI prints compare activity from month to month.
In September, the economy topped a PMI reading of 50.1.
— Abigail of
Traders looking for signs of a Fed slowdown
Wall Street will be closely watching the Federal Reserve’s statement this week for signs that the central bank will ease its pace of rate hikes.
According to the CME FedWatch tool, traders believe there is an 80% chance the Fed will raise rates by three-quarters of a point on Wednesday.
That would bring the central bank’s target range to between 3.75% and 4%.
Beyond that, however, the market looks more uncertain. There is only a 44% chance of another hike of this size in December.
– Jesse Pound