Japan’s Nikkei rose 2% in mixed Asian trading after Wall Street rebound

Oil prices rise after Russia threatens to halt energy exports

oil prices rose, Recovering from the previous session’s lossesAfter Russian President Vladimir Putin the threat Stop oil and gas exports if European countries impose price ceilings on Russian oil.

Brent crude Futures contracts rose 1% to $88.88 a barrel West Texas Intermediate US It added 1.1% to $82.83 a barrel.

According to Mizuho’s note, “The drop in global oil prices was driven by concerns about slowing growth in China after trade data for August.”

– Lee Ying Shan

Standard & Poor’s said freight rates peaked earlier than expected as global trade slowed

Standard & Poor’s said freight rates for containers and dry bulk — or ships carrying raw materials and bulk cargo — have fallen over the past three months, adding that rates peaked earlier than expected in the second quarter.

S&P’s freight rate forecast models also projected the Baltic Dry Index — a measure of the price of transporting key raw materials by sea — to fall by about 20% to 30% for the year before recovering slightly in 2024.

This underscores the increasing risks of a global recession as consumer demand declines Amid the rising cost of living and inflation.

Read the The full story is here.

– So Lin Tan

Australia posts record drop in trade surplus; Iron ore and coal exports declined

Australia posted a record drop in its trade surplus due to a drop in iron ore and coal exports.

Exports in July were down 10% from the previous month while imports were up 5%, resulting in a shrinking trade surplus of A$8.7 billion in July from A$17.1 billion the previous month.

The declining trade surplus “was well below analyst consensus of A$14.5 billion and even below our forecast of A$10.5 billion,” Capital Economics said.

“The recent decline in the price of iron ore has not been fully affected by iron ore exports yet. Indeed, with the RBA’s commodity price index in August 20% below its peak in May, it is clear that the trade surplus has peaked,” Capital Marcel said. Thilliant Chief Economist.

– So Lin Tan

Apple suppliers rise in Asia after iPhone 14 announcement

Wells Fargo strategist says the US dollar has legs to move higher

The U.S. dollar It has room to run even higher thanks to spreads on the back of a hawkish Fed, according to Wells Fargo Securities FX strategist Brendan McKenna.

“We think a lot of these international banks won’t be able to raise rates as aggressively as market rates,” he told CNBC’s Squawk Box Asia.

“So it’s kind of a combination of a more hawkish Fed and a less hawkish tightening cycle than international central banks supporting the dollar for the remainder of this year,” he said.

– Jie Lee

Huawei launches the first smartphone that connects to the Chinese competitor’s GPS system

Huawei has removed the covers of the Mate 50 smartphone, its latest attempt to stay relevant in the mobile market even after it has lost a significant amount of ground due to US sanctions.

Huawei claims that this is the first smartphone released to the public that can connect to China’s Beidou satellite network, a competitor to the US state-owned GPS. It was completed in 2020.

US sanctions on the company over the past three years have Disconnect the company from the main components and programs And crushed its activity in the field of smart phones.

Read the The full story is here.

– Arjun Kharbal

Goldman Sachs raises expectations for Fed hike this year

Goldman Sachs has revised its expectations for the upcoming Fed rate decisions.

Analysts led by Chief Economist Jan Hatzius said in a note that the company expects an increase of 75 basis points in September, up from a previous forecast of 50 basis points, as well as a 50 basis point increase in November, also revised. From the previous projection 25 basis points.

It also expects a 25 basis point increase in December – citing recent hawkish comments from officials.

The memo said Fed officials “appear to indicate that progress toward taming inflation has not been uniform or at the pace they would like,” the memo said.

– Jie Lee

Japan’s economy grew at an annual rate of 3.5%, exceeding estimates

Japan’s economy grew at an annual rate of 3.5% In the second quarter, it beat a Reuters poll forecast for 2.9% growth.

Official data showed that the economy grew 0.9 percent on a quarterly basis.

Spending growth will remain positive in Japan, according to Darren Tai, economist at Capital Economics Japan.

“Consumers have a lot of pandemic forced savings they can count on,” Taye said on CNBC’s “Squawk Box Asia,” adding that investors are betting on further widening of interest rate differentials between the Fed and the wise Bank of Japan. .

– Jihee Lee, Charmaine Jacob

CNBC Pro: The Wall Street pro predicts when the S&P 500 will rise — and reveals how it’s traded

According to market expert Phil Blancato, market volatility is here to stay.

But Ladenburg President and CEO Thalmann Asset Management sees a “solid rally” on paper as market conditions improve.

He predicts when the rally will be, and chooses his best options to trade volatility.

Professional subscribers can Read more here.

– Xavier Ong

All major averages closed higher, Nasdaq settled on 7 days of losses

Stocks rebounded on Wednesday as Wall Street sounded earlier concerns about sharp interest rate hikes coming from the Federal Reserve.

The Dow Jones Industrial Average rose 435.98 points, or 1.40%, to end the day at 31,581.28. The S&P 500 rose 1.83% to 3979.90 and the Nasdaq Composite rose 2.14% to 11,791.90, breaking a seven-day losing streak.

– Carmen Renick

Brainard says the Fed is ‘in this for as long as it takes’

Federal Reserve Vice Chairman Lyle Brainard pledged on Wednesday to The Central Bank continues to run against inflationsaying that higher prices hurt low-income families.

“We are in this as long as it takes to reduce inflation,” Brainard said in prepared remarks before a speech in New York. “So far, we have urgently raised the policy rate to the peak of the previous cycle, and the policy rate will need to rise further.”

Brainard said there were some examples of lower prices in the retail sector but “there may also be room for a cut” in profit margins for auto companies in particular.

Jesse Pound, Jeff Cox

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