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Tag: Economic events

  • Hong Kong proclaims $21 billion funds to enhance economic system as town battles new Covid wave

    A highway in Hong Kong on Feb. 15, 2022.

    Paul Yeung | Bloomberg | Getty Photographs

    The Hong Kong executive introduced Wednesday it is going to be spending greater than 170 billion Hong Kong greenbacks ($21.8 billion) to battle the pandemic and enhance the economic system, an afternoon after government mentioned virus keep watch over measures shall be prolonged to April 20.

    The semi-autonomous Chinese language town is experiencing its 5th wave of coronavirus infections, with day by day circumstances hovering to file highs. On Wednesday, Hong Kong reported 8,674 new circumstances.

    Closing week, Leader Govt Carrie Lam dominated out a complete lockdown, however caught with China’s zero-Covid coverage.

    All through the funds speech Wednesday, Monetary Secretary Paul Chan mentioned the unfold of the virus has “dealt a heavy blow to many of us, disrupting each their existence and paintings, and critically affected the operations of small- and medium-sized enterprises.”

    “At this essential time, we wish to direct extra assets to alleviate other people’s hardship and supply SMEs with some respiring house so that you could stabilise the economic system and deal with public self belief,” he mentioned, in line with an professional translation of his speech.

    The industrial measures introduced come with:

    A 100% relief in income tax for companies and salaries tax for people, capped at 10,000 Hong Kong greenbacks ($1,280);Intake vouchers value 10,000 Hong Kong greenbacks;Subsidy of 10,000 Hong Kong greenbacks for the briefly unemployed;Condo waiver for companies that should be closed on account of Covid regulations.

    The funds additionally allocates 22 billion Hong Kong greenbacks to “anti-epidemic” measures aimed toward boosting Covid checking out, shopping check kits and offering enhance to the town’s Clinic Authority, in addition to 6 billion Hong Kong greenbacks to shop for extra vaccines as booster doses.

    “I’ve earmarked $20 billion for different doable anti‑epidemic wishes. We will be able to supply complete enhance to battle the epidemic must extra assets be required,” mentioned Chan.

    Learn extra about China from CNBC Professional

    The Hong Kong funds is “basically carrot” as an alternative of stick, and that is the reason just right, mentioned Paul Gambles, co-founder of advisory company MBMG Staff.

    Alicia Garcia-Herrero, leader economist for Asia-Pacific at Natixis, informed CNBC extra spending is “just right information,” and that the expenditure must be centered at other people and companies who want it maximum.

    Financial outlook

    After two consecutive years of declines, Hong Kong’s general economic system noticed a “visual restoration” in 2021 with a expansion of 6.4%, Chan mentioned.

    He forecast expansion of two% to three.5% for 2022 and mentioned the outlook within the medium time period is sure.

    Alternatively, Garcia-Herrero mentioned the town’s expansion predictions had been at the constructive facet. Natixis sees financial expansion of fairly underneath 2% for 2022, assuming the present Covid wave passes across the finish of March.

    If the virus continues to unfold, there generally is a “misplaced first part,” she mentioned on “Boulevard Indicators Asia,” indicating the expansion within the first part of the 12 months might not be as tough because the latter part.

    She added that this 12 months’s stimulus is “much more vital” than remaining 12 months’s, since expansion shall be slower.

    “How a lot we’d like isn’t such a lot in regards to the quantity, however how centered it’s so that it’s not saved within the drawer. That is the key,” she mentioned.

    Hong Kong’s economic system has been battered by way of the U.S.-China business conflict, home political unrest and the Covid pandemic lately.

  • Eu markets advance as buyers look forward to Ukraine-Russia updates

    LONDON — Eu shares moved upper on Wednesday as buyers persevered to observe the newest trends within the Russia-Ukraine disaster, whilst digesting a slew of company profits.

    The pan-Eu Stoxx 600 added 0.8% in early business, with automobiles mountain climbing 2% to steer beneficial properties as maximum sectors and primary bourses entered certain territory.

    World markets have been rattled via occasions in Europe this week after Russian President Vladimir Putin ordered troops into two breakaway areas of japanese Ukraine. The transfer got here after he introduced Monday night that he would acknowledge their independence.

    The EU and U.Okay. introduced sanctions on Russia previous Tuesday and the U.S. adopted later within the day with President Joe Biden saying a primary tranche of sanctions towards the rustic, focused on Russian banks, the rustic’s sovereign debt and 3 folks.

    Inventory choices and making an investment developments from CNBC Professional:

    U.S. inventory marketplace futures have been modestly upper in in a single day buying and selling Tuesday after the S&P 500 closed in correction territory amid escalating tensions between Russia and Ukraine.

    On the other hand, analysts say the outlook for Federal Reserve price hikes after March might develop into much less transparent if Russia continues its incursion into Ukraine. U.S. Treasury yields retreated as Ukraine-Russia tensions rose, and the yield at the benchmark U.S. 10-year Treasury fell under 2% as buyers sought out safe-haven property.

    Income on Wednesday got here from Barclays, Wolters Kluwer, Rio Tinto, Uniper, Danone, Henkel and Aston Martin Lagonda.

    Barclays beat expectancies as full-year internet benefit quadrupled in 2021, led via report efficiency in its company and funding banking department.

    Knowledge releases come with the newest GfK client sentiment index from Germany.

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    – CNBC’s Pippa Stevens contributed to this marketplace record.

  • Inventory futures inch upper after S&P 500 closes in correction

    U.S. inventory marketplace futures have been modestly upper in in a single day buying and selling Tuesday after the S&P 500 closed in correction territory amid escalating tensions between Russia and Ukraine.

    Futures contracts tied to the Dow Jones Business Reasonable complicated 85 issues. S&P 500 futures won 0.35%, whilst Nasdaq 100 futures rose 0.5%.

    All the way through common buying and selling the Dow fell 483 issues, or 1.42%, for its fourth directly unfavorable consultation. At one level the 30-stock benchmark were down greater than 700 issues. The S&P 500 shed 1.01%, and is now 10.25% underneath its Jan. 3 document shut, striking the vast marketplace index in correction territory. The Nasdaq Composite declined 1.23% for its fourth directly unfavorable consultation.

    On Tuesday afternoon President Joe Biden introduced a primary tranche of sanctions towards Russia. The measures goal Russian banks, the rustic’s sovereign debt and 3 people.

    “Whilst uncertainties stay, our paintings presentations that traditionally army/disaster occasions have a tendency to inject volatility into markets and steadily reason a momentary dip, however shares have a tendency to sooner or later rebound until the development pushes the financial system into recession,” Eylem Senyuz, senior international macro strategist at Truist wrote in a be aware to shoppers.

    “Investor sentiment additionally suggests the bar for certain surprises is low,” the company added.

    All 11 S&P 500 sectors declined on Tuesday, resulted in the disadvantage through client discretionary shares, which fell 3%. Power shares moved decrease regardless of a soar in oil costs. Global benchmark Brent crude traded as top as $99.50 according to barrel. West Texas Intermediate crude futures, the U.S. oil benchmark, hit a consultation top of $96, a worth ultimate observed in August 2014.

    Inventory choices and making an investment developments from CNBC Professional:

    “The contagion chance will utterly feed into inflationary pressures as power prices will skyrocket and that can derail massive portions of the industrial restoration popping out of Covid,” mentioned Oanda’s Ed Moya.

    “Geopolitical dangers may result in a slower enlargement cycle and that would take away the danger of a half-point Fed price hike on the March sixteenth FOMC choice,” he added.

    Wall Boulevard is having a bet that there is a 100% likelihood of a price hike on the Federal Reserve’s March assembly, in line with the CME Workforce’s FedWatch software. With inflation operating scorching, requires a 50-basis level hike on the March assembly were accelerating.

    As tensions construct between Russia and Ukraine, yields have retreated, with the yield at the benchmark U.S. 10-year Treasury falling underneath 2% as buyers hunt down safe-haven belongings.

    As of Friday 78% of S&P 500 firms that experience reported have crowned profits estimates, whilst 78% have exceeded income expectancies, in line with information from FactSet.

  • Treasury yields are secure as Russia-Ukraine tensions escalate

    U.S. Treasury yields had been secure on Tuesday amid escalating tensions between Russia and Ukraine.

    The yield at the benchmark 10-year Treasury word moved 1 foundation level upper to one.939% at round 7:30 a.m. ET. The yield at the 30-year Treasury bond was once flat at 2.254%. Yields transfer inversely to costs and 1 foundation level is the same as 0.01%.

    Treasury yields endured to drag again from contemporary highs, as traders appeared to protected haven property like bonds, with fears rising in regards to the Russia-Ukraine disaster.

    Russian President Vladimir Putin ordered troops into two breakaway areas of japanese Ukraine after saying Monday night that he would acknowledge their independence.

    The decree formalizing the transfer referred to as for “peacekeeping forces” to go into Donetsk and Luhansk.

    President Joe Biden spoke back to Putin’s choice to acknowledge the independence of the 2 areas, by means of ordering sanctions on them, with the Ecu Union vowing to take further measures.

    The ten-year Treasury yield held above 2% closing week, with traders gearing up for rate of interest hikes.

    In keeping with the CME Team’s FedWatch software, investors are making a bet that there’s a 100% likelihood of a Fed price hike after the March 15-16 assembly.

    Inventory choices and making an investment traits from CNBC Professional:

    Hugh Gimber, world marketplace strategist at JP Morgan Asset Control, advised CNBC’s “Squawk Field Europe” on Tuesday that geopolitical tensions are striking central banks beneath “much more drive this yr.”

    “We knew getting into 2022 that they confronted an overly tricky stability: Tighten too temporarily, gradual the financial system too some distance, tighten too slowly and chance dropping regulate of medium time period inflation expectancies,” he defined.

    Gimber mentioned the geopolitical state of affairs is “including to confusion.”

    “On the margin, upper power costs are going to push that top in inflation additional out, however in the end I believe the central banks are running with a quite blunt software package right here, ” he mentioned.

    Gimber argued that simply as central banks had been not able to unravel semiconductor shortages closing yr that had been striking upward drive on items costs, nor may just they “remedy upper power costs by the use of price hikes this yr.”

    At the information entrance on Tuesday, December’s S&P/Case-Shiller House Worth is due out at 9 a.m. ET.

    Markit is then set to unlock its February buying managers’ index flash at 9:45 a.m. ET.

    The February CB shopper self belief index is slated to return out at 10 a.m. ET.

    Auctions are scheduled to be hung on Tuesday for $60 billion of 13-week expenses, $51 billion of 26-week expenses, $34 billion of 52-week expenses and $52 billion of 2-year notes.

    — CNBC’s Amanda Macias contributed to this marketplace file.

  • Wall Side road analysts percentage hedging techniques as Russia-Ukraine tensions mount

    A carrier member of the Ukrainian militia takes section in tactical army workouts at a coaching flooring within the Rivne area, Ukraine February 16, 2022.

    Ukrainian Presidential Press Provider by the use of Reuters

    Belongings around the spectrum were suffering from the geopolitical tensions, together with oil and herbal gasoline, wheat, the Russian ruble and protected havens reminiscent of gold, govt bonds, the Eastern yen and the Swiss franc.

    Philipp Lisibach, leader international strategist at Credit score Suisse, advised CNBC previous this week that any showed de-escalation would strengthen possibility property after a duration of uncertainty and volatility.

    “If we have now, let’s consider, a solution relating to the geopolitical problems that we lately face, I’d believe that the worldwide economic system takes a breather, dangerous parts of the marketplace can without a doubt get well, the cyclicality and the worth business will have to more than likely do neatly, and Eu equities specifically that experience come underneath force, we suppose that they may be able to proceed to outperform, so we might without a doubt glance into that attitude particularly,” Lisibach mentioned.

    ‘Common geopolitical hedges’

    Given the huge array of conceivable results to the present standoff, traders were reluctant to set forth a base case situation, opting as an alternative for cautious portfolio hedging to mitigate the possible problem dangers of a Russian invasion, whilst taking pictures one of the vital upside within the tournament of a de-escalation.

    “We might hardly glance to put for subject material geopolitical possibility, as it is so opaque. That mentioned, we do have some common geopolitical hedges within the portfolio, basically gold and, relying at the supply of the chance, some oil publicity, in addition to, after all, some govt bonds, regardless that with diminished length,” mentioned Anthony Rayner, multi-asset supervisor at Premier Miton Traders.

    Bhanu Baweja, leader strategist at UBS Funding Financial institution, argued previous this week that out of doors of power and Russian property, markets had in truth no longer priced in an excessive amount of possibility.

    “We’ve observed equities come off a bit of bit, however in the event you have a look at shopper durables — as a result of that’s the one sector or subsector that may no doubt be impacted thru weaker enlargement and better inflation — in Europe that sector is doing significantly better than it’s within the U.S.” he mentioned.

    Baweja added that U.S. prime yield debt may be underperforming that of Europe, whilst the euro has remained quite stable.

    Markets are monitoring the “playbook from 2014,” Baweja instructed, when Russia first invaded Crimea and the following levying of sanctions towards Russia throughout the summer time.

    “Via that duration what in reality came about was once some portions of CEE FX were given impacted, oil rose a bit of bit within the first iteration, got here down in the second, so no longer so much came about in shares, so in reality it become relatively a neighborhood tournament,” Baweja advised CNBC on Tuesday.

    “This time it sort of feels a lot more severe, however I do not believe traders wish to utterly upend their mind-set and more than likely wish to search for hedges, reasonably than utterly converting their core portfolio.”

    FX observed as the most productive hedge

    In relation to hedging, Baweja instructed that with fairness and bond volatility already prime because of central financial institution hypothesis, traders will have to glance to foreign currency echange markets, the place volatility continues to be quite low.

    “Very similar to 2014, I’d be taking a look at CEE (Central and Jap Europe) FX, puts like dollar-Pole (zloty) or dollar-Czech (koruna), for hedges,” he mentioned.

    “Russian property themselves have moved so much in order that they at the side of power are pricing numerous possibility, which additionally manner if the placement turns into higher, you then in reality should not see international equities seeing large reduction from that, you will have to see Russian property going up and effort coming down.”

    If the placement escalates, Baweja instructed hedging thru FX reasonably than purchasing defensive shares or favoring U.S. property over Europe.

    “If we need to do it inside equities, we predict DAX and Eu banks are more than likely the most productive hedges,” he added.

    Whilst fairness markets in Russia and all over the world proceed to appear delicate to geopolitical tendencies, the ruble has remained quite tough across the 75 mark towards the greenback, regardless of some volatility.

    Luis Costa, head of CEEMEA FX and charges technique at Citi, advised CNBC on Thursday that flows into the ruble are prone to render it probably the most resilient Russian asset magnificence, with prime power and gasoline costs pointing to sturdy present account surpluses in Russia.

    “And let’s no longer overlook Russia used to shop for FX, they used to shop for greenbacks as a spinoff at the fiscal legislation, they usually stopped the acquisition of greenbacks a few month in the past in an effort to beef up the foreign money,” Costa mentioned.

    “That is making herbal flows in Ruble much more certain for the foreign money, so we predict that – in the entire asset array of Ruble possibility, of Russia possibility, credit score, charges, bonds and FX – FX will proceed to be probably the most resilient a part of the puzzle right here.”

  • Treasury yields inch decrease as focal point stays on Russia-Ukraine disaster

    U.S. Treasury yields had been combined on Friday morning, as buyers persevered to observe trends at the Russia-Ukraine disaster.

    The yield at the benchmark 10-year Treasury observe fell by means of much less a foundation level to one.9685% at 4:15 a.m. ET. The yield at the 30-year Treasury bond moved 1 foundation level decrease to two.2941%. Yields transfer inversely to costs and 1 foundation level is the same as 0.01%.

    Secretary of State Antony Blinken on Thursday spoke on the United Countries to make an pressing attraction towards a Russian invasion of Ukraine.

    In the meantime, the Federal Reserve’s plans to tighten financial coverage has additionally been in focal point for buyers. St. Louis Fed President James Bullard warned on Thursday that with out motion on rates of interest, inflation may turn into an much more significant issue.

    Inventory choices and making an investment traits from CNBC Professional:

    On Friday, Fed Governor Christopher Waller is because of discuss on the 2022 U.S. Financial Coverage Discussion board, at 10:15 a.m. ET. Fed Governor Lael Brainard is then because of discuss on the discussion board at 1:30 p.m. ET.

    At the knowledge entrance, January’s present house gross sales figures are due out at 10 a.m. ET.

    There are not any auctions scheduled to happen on Friday.

    — CNBC’s Jeff Cox contributed to this marketplace document.

  • Treasury yields fall as buyers digest Fed replace and observe Russia-Ukraine disaster

    U.S. Treasury yields fell on Thursday morning, as buyers digested the newest Federal Reserve assembly mins and monitored tendencies at the Russia-Ukraine disaster.

    The yield at the benchmark 10-year Treasury notice gave up 4 foundation issues, falling to two.0015% at 4 a.m. ET. The yield at the 30-year Treasury bond moved 4 foundation issues decrease to two.3211%. Yields transfer inversely to costs and 1 foundation level is the same as 0.01%.

    The Fed’s January assembly mins, launched Wednesday afternoon, presented a dovish replace from the central financial institution. The mins indicated that the Fed would most probably begin to lift rates of interest quickly and defined its plans for dropping the trillions of bucks of bonds off its steadiness sheet.

    Charlie Ripley, senior funding strategist at Allianz Funding Control, mentioned on Wednesday that the Fed mins point out a “quicker tempo of tightening relative to the closing climbing cycle is warranted.”

    “On steadiness, there was once not anything within the mins that instructed the Fed can be extra competitive than what the marketplace has already priced in,” he added.

    In the meantime, geopolitical tensions persisted to be in center of attention for buyers. NATO officers on Wednesday accused Russia of accelerating its choice of troops on the Ukrainian border, an afternoon after Moscow claimed it had began to withdraw a few of its army gadgets.

    Inventory alternatives and making an investment tendencies from CNBC Professional:

    When it comes to financial knowledge releases due out on Thursday, January’s construction allow and housing begins figures are due out at 8:30 a.m. ET.

    The choice of preliminary jobless claims filed right through the week ended Feb. 12 could also be due out at 8:30 a.m. ET.

    Auctions are slated to be hung on Thursday for $50 billion of 4-week expenses, $40 billion of 8-week expenses and $9 billion of 30-week Treasury inflation-protected securities.

    — CNBC’s Jeff Cox and Chloe Taylor contributed to this marketplace record.

  • Treasury yields are blended, with geopolitical tensions and Fed mins in center of attention

    U.S. Treasury yields have been blended on Wednesday morning, as investor center of attention remained on geopolitical tensions, together with financial knowledge releases.

    The yield at the benchmark 10-year Treasury word noticed little motion, status at 2.0469% at 4:40 a.m. ET. The yield at the 30-year Treasury bond fell beneath a foundation level to two.3550%. Yields transfer inversely to costs and 1 foundation level is the same as 0.01%.

    Investor consideration this week has been fastened on rising fears of a Russian invasion of Ukraine.

    Markets all over the world rallied on Tuesday after Russia introduced that it had begun returning a few of its troops from the Ukrainian border again to their bases. Treasury yields additionally moved upper, as traders offered out of secure haven belongings, amid hopes of a de-escalation in geopolitical tensions.

    In an deal with on Tuesday afternoon, U.S. President Joe Biden downplayed the Kremlin’s declare.

    “We’ve got now not but verified the Russian army devices are returning to their house bases. Certainly, our analysts point out that they continue to be very a lot in a threatening place,” Biden stated, including that there are greater than 150,000 troops at the border.

    In the meantime, the Federal Reserve is because of free up the mins from its January assembly at 2 p.m. ET on Wednesday. Traders will probably be poring over the mins for any longer indications of its plans for elevating rates of interest and tightening financial coverage, amid emerging inflation.

    Inventory alternatives and making an investment traits from CNBC Professional:

    Ben Gutteridge, director of fashion portfolio services and products at Invesco, advised CNBC’s “Squawk Field Europe” on Wednesday that “in the end the Fed is interested in the long-term inflationary image, and that also turns out lovely benign, in keeping with bond markets, a minimum of.”

    “So I don’t believe the Fed will see the wish to ship the 6 or 7 [interest rate] hikes which might be recently priced in,” he added.

    January retail gross sales knowledge is due out at 8:30 a.m. ET. Economists expect the print to turn that gross sales rose 2.1% in January, when compared with a 1.9% decline in December.

    January’s import and export costs also are set to be launched at 8:30 a.m. ET.

    Business manufacturing figures for January are then due out at 9:15 a.m. ET.

    February’s Nationwide Affiliation for House Developers housing index is slated to come back out at 10 a.m. ET.

    Auctions are scheduled to be hung on Wednesday for $40 billion of 119-day expenses and $19 billion of 20-year expenses.

    — CNBC’s Pippa Stevens and Amanda Macias contributed to this marketplace record.

  • Treasury yields edge decrease as traders digest Fed remarks, Ukraine tensions

    U.S. Treasury yields moved decrease on Tuesday morning, with traders comparing safe-haven belongings amid the escalated geopolitical tensions between Russia and Ukraine.

    The yield at the benchmark 10-year Treasury word fell 1 foundation level at 1.9788% at round 2 a.m. ET. The benchmark 10-year charge hit the two% stage final week following the freshest inflation studying in 4 many years.

    The yield at the 30-year Treasury bond slipped 2 foundation issues to industry at 2.2760%. Yields transfer inversely to costs and a foundation level equals 0.01%.

    Yields moved upper on Monday as St. Louis Fed President James Bullard reiterated his name for the central financial institution to take competitive steps to combat inflation within the first part of 2022. Bullard informed CNBC that the Fed will have to “front-load” the tightening of its financial coverage.

    Previous on Monday, yields have been decrease however got here again following feedback from Russia’s Overseas Minister Sergey Lavrov to Vladimir Putin that perceived to recommend Russia would proceed talks with EU and NATO over Ukraine.

    At the knowledge entrance, a January manufacturer worth index is due out at 8:30 a.m. ET on Tuesday, with an Empire State Production survey due on the similar time. No Treasury auctions are scheduled for Tuesday.

    — CNBC’s Maggie Fitzgerald contributed to this newsletter.

  • U.S. Treasury yields edge decrease on Russia-Ukraine fears

    U.S. Treasury yields fell rather on Monday with buyers choosing safe-haven property amid the escalated geopolitical tensions between Russia and Ukraine.

    The yield at the benchmark 10-year Treasury observe fell 1 foundation level to at least one.9371% at 3 a.m. ET. The benchmark 10-year fee hit the two% stage ultimate week following the most up to date inflation studying in 4 a long time.

    The yield at the 30-year Treasury bond, in the meantime, fell 1 foundation level Monday to industry at 2.2399%. Yields transfer inversely to costs and a foundation level equals 0.01%.

    On Friday, a pointy transfer decrease in bond yields got here after U.S. Nationwide Safety Guide Jake Sullivan stated at a White Space briefing that there have been indicators of Russian escalation on the Ukraine border and that it was once imaginable that an invasion may happen all over the Olympics, in spite of hypothesis on the contrary.