Hong Kong shares rise 4% ahead of China’s Covid briefing

Oil prices rose ahead of a press conference to be held by China’s State Council as investors continue to monitor developments, paring some losses seen on Monday, when it hit the lowest levels in nearly a year.

the West Texas Intermediate Futures rose 1.76% to settle at 78.59 dollars a barrel, while the Brent crude futures rose 2.28% to settle at $85.00 a barrel.

However, oil markets may be “misjudging the China lockdown news,” Rystad Energy wrote in a note.

“[The latest lockdowns’] The effect on China’s near-term oil demand, particularly in transportation, is likely to be minor,” the note added, citing the company’s own research into actual traffic activity in China.

Even with daily Covid cases continuing to rise, cities like Shanghai have not shown a slowdown in road traffic activity, according to Rystad Energy’s own research.

—Lee Yingshan

Indices in China rose more than 2% as investors closely watched developments in the nation’s zero-covid policy after seeing losses in the previous session.

China’s CSI 300 index rose 2.97% in the morning session, while the Shanghai Composite rose 2.2%. the Shenzhen Components The index gained 2.172%.

Local media reported that the Chinese State Council will hold a press conference on the Covid measures at 3 pm local time, or 2 am ET.

The nation saw a decrease in the number of daily infections for the first time in over a week.

–Evelyn Cheng, Jihye Lee

Shares related to Hong Kong-listed property developers soared after China’s regulator announced it would lift a ban on raising equity funds for the sector.

China Securities Regulatory Commission Announced five measures to support the housing market, including the removal of a multi-year restriction on property developers selling shares to raise funds.

Cifi Holdings Group jumped 13.01% in the first hour of trading, country garden also increased 13.36%, logan group increased 10.23% and Longfor Group won 9.88%.

—Jihye Lee

Hong Kong Hang Seng Index It is on pace to post its best month since April 1999, when the index gained 21.85%.

The index was up more than 3% as of Tuesday morning and is up about 22% for the month of November, according to Refinitiv data.

The HSI closed down 1.57% on Monday, the worst day in a week, when the Hang Seng lost 1.87% on November 1. twenty-one

–Gina Francolla, Jihye Lee

from Japan unemployment rate for October it remained stable from the September reading of 2.6%, according to official data. The figure is slightly higher than the median expectation of 2.5% of economists polled by Reuters.

the ratio of jobs per applicant, which measures active job offers per job seeker, stood at 1.35. That indicates that there are 135 jobs available for every 100 applicants, indicating a still tight job market in Japan.

The nations retail sales it rose 4.3% in October on an annualized basis, below expectations for a 5% rise forecast in a separate Reuters poll.

The latest reading marks the first weakening in retail sales growth seen since June of this year.

– jihye lee

S t. Louis Fed President James Bullard said Monday that the Fed should continue to raise its benchmark interest rate in the coming months and that the market may be underestimating the possibility of the Fed becoming more hawkish.

“We’re going to have to continue our interest rate increases through 2023, and there’s some risk that we’ve had to go even higher than [5%]Bullard said in a Barron’s Live webinar.

Bullard made waves in financial markets earlier this month when he said the Fed hikes had “only limited effects” on inflation so far and that the benchmark interest rate may need to rise to between 5% and 7%.

Bullard, who is a voting member of the FOMC, said the Fed will need to postpone any rate cuts to next year even if the inflation picture begins to show steady improvement.

“I think we’ll probably have to stay there for all of 2023 and into 2024, given the historical behavior of core PCE inflation or Dallas Fed trimmed average inflation. They’ll go down, I think. That’s my baseline. But probably not. will do”. It will go down as fast as the markets and probably the Fed would like,” Bullard said.

—Jesse Pound

It is “critical” for investors to watch valuations at this time as a recession looms and inflation is likely to continue, said Steven Glass, managing director of Pella Funds Management.

In this environment, Glass selected a list of nine stocks that he said “look particularly cheap given their growth outlook.”

CNBC Pro subscribers can read more here.

—Weizhen Tan

The bitcoin price fell on Monday after BlockFi officially announced that it filed for Chapter 11 bankruptcy in the wake of the FTX bankruptcy.

Bitcoin briefly fell to a low of around $16,000 but has since recovered. Last time it was lower by just 1% at over $16,300, according to Coin Metrics. The action in the ether price showed a similar rebound.

BlockFi has been in bad shape since the spring, following the explosion of the Terra project that led to the implosion of Three Arrows Capital. At the time, the company accepted a bailout from FTX that would help it avoid bankruptcy. Of course, FTX is now filing for its own bankruptcy.

—Tanaya Machel

Many global companies are heavily exposed to China, including some of the world’s largest automakers, which generate 20-40% of their global sales in the country, according to Goldman Sachs.

In a note to customers on Nov. 1. On January 22, before the latest protests, the investment bank mapped the exposure of the global auto industry to Chinese consumers.

CNBC Pro subscribers can read more here.

—Ganesh Rao

After a winning Thanksgiving week, all three major indices ended lower on Monday as investors sold amid rising concerns about supply chain disruptions amid Covid-related protests in China. .

the Dow Jones Industrial Average it lost 1.45%, or 497.57 points, and closed at 33,849.46. the S&P 500 it also lost 1.54% to close at 3,963.94. the Nasdaq Composite it fell 1.58% and ended at 11,049.50.

—Alex Harring