By CNBC (World News) | Created at 2024-10-22 00:00:23 | Updated at 2024-10-22 02:45:06
2 hours ago
A customer places a Japanese 10,000 yen banknote on a checkout counter while making a purchase at an Akidai YK supermarket in Tokyo, Japan, on Monday, June 27, 2022.
Kiyoshi Ota | Bloomberg | Getty Images
Asia-Pacific markets are mostly set to open lower on Tuesday, trailing a mixed session on Wall Street.
During the day, two U.S. Federal Reserve officials had spoken about the trajectory of interest rates.
Minneapolis Fed President Neel Kashkari, noting the U.S.' resilient economy and strong labor market, said the longer term trajectory for interest rates could be higher than it has in the past.
Dallas Federal Reserve President Lorie Logan said she supports the current move to lowering interest rates, but that a patient approach will be needed.
In Asia, investors are set to see a light day in terms of economic data.
Investors will be watching the 278.56 billion rupee ($3.3 billion) trading debut of Hyundai India on the country's stock exchange, which is reportedly poised to be India's largest ever IPO.
Australia's S&P/ASX 200 started the day down 1%, while futures for Hong Kong's Hang Seng index stood at 20,386 pointing to a weaker open compared to the HSI's last close of 20,478.46.
In contrast, Japan's benchmark Nikkei 225 is set to rise, with the futures contract in Chicago at 39,165 and its counterpart in Osaka at 39,140 against the index's last close of 38,954.6.
Overnight in the U.S., stocks ended mixed as Treasury yields rose and investors awaited new earnings reports.
The S&P 500 slipped 0.18% and the 30-stock Dow lost 0.8%, and snapped a three-day run of winning sessions.
The Nasdaq Composite was the outlier, rising 0.27%.
— CNBC's Pia Singh and Sarah Min contributed to this report.
JPMorgan issues short-term buy call on China electric car stock
JPMorgan sees some near-term catalysts leading to a big rally in Xpeng shares.
Shares rose nearly 2% in morning trading after analyst Nick Lai, who has an overweight rating on the Chinese electric vehicle maker, added Xpeng to the Wall Street bank's positive catalyst watch list in a 17-page report out Sunday. His price target implied roughly 34% upside from the stock's close on Friday.
"In addition to our positive sector stance into the year-end (i.e. 35% QoQ PV growth in 4Q24 vs. seasonality ~20%, click here), XPeng's upcoming new product strategy, advancing in-house technology and solid 3Q earnings as well as strength in 4Q vehicle delivery should altogether support its share price," the analyst wrote.
CNBC PRO subscribers can read more here.
— Sean Conlon
Uncertainty surrounding November election is 'no reason to exit the market,' says UBS
Despite a tight U.S. presidential election remaining too close to call, UBS remains constructive on equities and does not think any uptick in volatility could harm a strong market.
"As neither party holds a clear advantage in any of the key swing states that could decide the outcome, the race remains too close to call, and we expect volatility to pick up in the coming weeks amid elevated uncertainty," UBS Global Wealth Management chief investment officer Solita Marcelli wrote Monday. "But we also think the potential volatility is unlikely to derail positive equity fundamentals, and remind investors not to make dramatic portfolio changes based on expected election outcomes."
— Brian Evans
Minneapolis Fed President Kashkari sees higher long-run rates
Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis, speaks during an interview with Reuters in New York City, New York, May 22, 2023.
Mike Segar | Reuters
Minneapolis Federal Reserve President Neel Kashkari said Monday he thinks the longer-term trajectory for interest rates could be higher than it has been in the past.
Strong economic growth in the face of an aggressive Fed rate-hiking campaign indicates that the so-called neutral rate that neither pushes nor holds back growth over time is elevated compared to the 2.5% or so rate that Fed officials have long held, Kashkari said.
"We've raised rates a lot, and the US economy has basically absorbed them and still continues to perform quite well, and the labor market has remained strong. That's really good news, but it's a little bit hard to figure," he said during a question-and-answer session in Wisconsin.
"The fact that the economy has been so resilient over the last couple years, tells me, at least right now, the neutral rate seems to be higher," he added.
In their quarterly economic projections, Fed officials have been gradually raising the long-run rate higher, most recently putting it at 2.9% in September.
— Jeff Cox
