Stock exchange fluctuations in Hong Kong, Asian markets varied; China’s PMI shrinks to deflation

Goldman Sachs expects Fed rates to peak at 5%

Economists at Goldman Sachs expect the Fed rate to peak at 5%, after raising its 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 forecast — and are now calling for a 50 basis point increase in December, a 25 basis point increase in February, and another 25 basis point increase in March.

“Inflation is likely to remain uncomfortably high for a while, which could make continuing to rise in small increments the path of least resistance,” the note said.

Ji Lee

Gaming stocks drop in Macau after casino shutdown from Covid case

Hong Kong-listed Macau gaming shares fell sharply in early trading after a factor in MGM ChinaCotai Casino has been tested for Covid, according to Government Notice.

Another notice said that several areas related to the case were placed under lockdown, with measures expected to be lifted between November 3 and 5.

MGM China shares fell 2.89%, where is macau down 2.62%, Galaxy Entertainment The shares fell 1.85%. China sands Shares also fell 2.29%. SJM Holdings It also fell more than 3%.

Factory activity in China shrank in October, missing expectations

Data from the National Bureau of Statistics showed that Chinese factory activity shrank in October compared to September.

The official reading of the manufacturing PMI came in at 49.2, missing expectations of 50 – the sign that separates monthly growth from contraction.

In September, the PMI reading was 50.1.

China’s official non-manufacturing PMI came in at 48.7, compared to 50.6 in September.

– Abigail Ng

Japan’s industrial production falls for the first time in four months

Japanese industrial production fell 1.6% in September from August, government data show up It fell more than expectations for a 1% decline in a Reuters poll Ending a three-month growth streak.

The decline was led by automobiles, chemicals and production machinery, the statement said.

A government survey forecasting industrial production numbers expected a decline in October, while an increase in November.

– Jie Lee

CNBC Pro: These cheap global stocks are set to rise — and analysts love them

Shares have sold off around the world this year on fears of a recession and rising inflation – and now they look cheap.

Analysts say there may be buying opportunities in some stocks that they expect to rise.

To find these stocks, CNBC Pro examined the names included in the MSCI World Index that met a number of criteria.

CNBC Pro subscribers can read more here.

– Weezin Tan

Currency Check: JPY weakens after 148 . levels

Japan yen It weakened above the 148 level against the US dollar in morning Asian trading for the first time since last Wednesday.

The moves come ahead of this week’s Federal Reserve monetary policy meeting, where the central bank is expected to raise interest rates by 75 basis points, widening the rate differential between the US and Japan.

The Japanese yen saw some consolidation to the 146 level last week before the Bank of Japan monetary decision to keep interest rates on hold, before creeping back towards 148 against the dollar.

Its price last time was 148.23 to the dollar.

– Abigail Ng

Factory activity in China for October is expected to remain unchanged from September

China’s official PMI for October is set to be roughly flat from September, according to a Reuters poll.

The reading is expected to come in at 50, the point that separates growth from contraction. The PMI prints comparative activity from month to month.

In September, the economy achieved a PMI reading of 50.1.

– Abigail Ng

Traders are looking for a slowdown signal from the Fed

Wall Street will be watching the Fed’s statement closely this week for signs that the central bank will ease the pace of rate hikes.

according to CME FedWatch ToolTraders believe there is an 80% chance that the Fed will raise interest rates by three-quarters of a point on Wednesday.

This will raise the central bank’s target range to 3.75% to 4%.

Beyond that, the market looks more opaque. There is only a 44% chance of another rally of this magnitude in December.

– Jesse Pound

Leave a Comment