February 8, 2023

South Korea inflation, US jobs report, COVID-19 in China

South Korea inflation, US jobs report, COVID-19 in China

India is poised to become the third largest economy by 2030

India is expected to overtake Japan and Germany to become the third largest economy in the world. Standard & Poor’s Worldwide Morgan Stanley predicted in a report.

The S&P forecast is based on the expectation that India’s average annual nominal GDP growth will be 6.3% through 2030. Similarly, Morgan Stanley estimates that India’s GDP is likely to double from current levels by 2031.

Wednesday, India recorded a year-on-year GDP growth of 6.3% in the July-September quarter, partially beating Reuters pollsters’ estimates of 6.2%.

– Lee Ying Chan

CNBC Pro: Citi names 6 global stocks for “defensive growth and value” acquisitions

Citi says investors need not completely abandon growth by focusing on a defensive portfolio of stocks ahead of a possible recession.

The investment bank has identified six global stocks that collectively offer “low risk, quality and growth”.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Inflation in South Korea in November came in below expectations

South Korea Annual November inflation It came in at 5%, lower than the 5.1% estimate in a Reuters poll.

The latest reading indicates a slight decline from 5.7% in October and away from an unprecedented peak of 6.3% in July.

– Jihe Lee

CNBC Pro: The BlackRock unit tells investors it’s time for a new portfolio operating playbook

BlackRock’s ETF division says the investment environment has changed drastically, which has “profound implications” for portfolios looking to the future.

In its 2023 Investor’s Guide, Blackrock’s iShares, one of the world’s largest providers of exchange-traded funds, said the shift brings with it “profound implications for portfolio building.”

CNBC Pro subscribers can read more here.

– Wizen tan

“No one wants to be too optimistic” ahead of the release of new employment data on Friday, the analyst says

Edward Moya, chief market analyst at Oanda, said stocks weren’t able to continue Wednesday’s rally because investors were waiting for the upcoming key jobs report on Friday.

He said that investors were intentionally holding back ahead of the morning’s non-farm payroll data. Investors will also be watching data on hourly wages and the unemployment rate.

“US stocks were not able to hold on to previous gains as Wall Street digested a slew of economic data showing that inflation is easing and the labor market is slowing,” Moya said. “It was a nice rally but no one wants to be aggressively bullish with the NFP approaching.”

Investors will be looking for the right data and the middle ground, said Megan Hornemann, chief investment officer at Verdence Capital Advisors. This means that it is weak enough to show that raising interest rates has the intended effect of an economic contraction, while it is strong enough to indicate that a recession could be avoided.

“A large number will scare markets more than the Fed won’t be able to slow the pace of rate hikes,” Megan Hornemann, chief investment officer at Verdence Capital Advisors, said in the jobs data Friday.

“With a number like that, I think maybe the markets could go higher like that,” she added. “But if you get a really soft number, it will scare off investors after that strong rally we had in November.”

– Alex Haring

Indexes come out of the winning month

Thursday was the first day of the new trading month as the market came out winning in November.

The Standard & Poor’s 500 And the daw Both posted gains for the second month in a row, rising by 5.38% and 5.67%, respectively. This monthly streak was the first for each since August 2021.

The NASDAQ Composite It rose 4.37%, its second consecutive positive month. It was the first time the tech-heavy index had started a streak since it saw three straight months of gains that ended in December 2021.

– Alex Haring

The headline inflation indicator rose less-than-expected in October

The Bureau of Economic Analysts reported that the core personal consumption expenditures index, a key measure of inflation, rose 0.2% in October. This is less than the Dow’s expected increase of 0.3%.

After this report, Treasury yields fell amid optimism about easing inflation.

– Fred Imbert