New Zealand’s inflation expectations have dropped to a two-year low according to a Reserve Bank of New Zealand survey.The RBNZ’s two-year inflation expectations fell to 2.76% from 2.83%, and annual price increases for a year ahead were expected to cool to 3.60%, down from 4.17%. The survey also highlighted that the central bank’s interest rate cycle has shown signs of bringing down price pressures. The RBNZ will meet next on Nov. 29.
Business sentiment among large Japanese companies rose in November, according to the Reuters Tankan survey. Confidence among large Japanese manufacturers also increased, the first time it has improved since August. The survey showed a patchy economic recovery and a challenging outlook for Japan’s manufacturers.
Morgan Stanley noted that a global shift to wellness is taking place, driven in part by the Covid-19 pandemic. Not only consumers, but governments are taking steps towards promoting wellness. CNBC Pro will delve into the stocks that Morgan Stanley believes will benefit, as well as the ones that will lose out due to this trend.
The tech theme has held strong this year and Morgan Stanley is particularly fixated on the memory sector. They regard the sector’s pricing power to be among the best in tech currently. The bank has come up with its top picks and preferred plays and CNBC Pro subscribers can take a look at it here.
Equities are poised for a major rally in the new year should central banks begin easing monetary policy and the Federal Reserve manage a soft landing, according to HSBC. They anticipate a 15% upside in global equity markets by the end of 2024. HSBC favors the technology and consumer discretionary sectors, believing that risks look better priced following the recent pullback in equities.
Austan Goolsbee, Chicago Federal Reserve President, said postulating on CNBC that there’s still a chance for a “golden path” where inflation can be brought down without a recession. The drop in price pressures might equal the fastest decline in inflation in the last century.
U.S. crude prices have dropped to their lowest level since July, falling nearly 4% as weak economic data overshadows concerns of a broader regional conflict erupting from the Israel-Hamas war. West Texas Intermediate fell to $77.73 a barrel, while Brent fell to $81.99 a barrel. The drop came after China’s exports fell more than expected in October, indicating softening global demand.
Wolfe Research strategist Rob Ginsberg noted that the early November rally could soon stall out. While some momentum indicators inflected positive for all of the indices, he also noted that each rally since the July peak has stalled out before making a fresh 1-month high, before rolling over to a new 1-month low.
