Asian markets were mixed after US stocks fell, and OPEC + announced production cuts

Mizuho: OPEC+ production cut confirms ‘explicit desire for price recovery’

The decision of OPEC and its allies Production cut by 2 million barrels per day Vishnu Varathan, head of economics and strategy at Mizuho Bank, stresses the group’s explicit desire for price booms, not just support.

He wrote that a supply cut of around 1 million barrels per day would have resulted in price gains without compromising on volumes, but that the larger cut shows “the alliance’s disregard for economic problems, and its geopolitical alignment with global partners.” .

“What might be said as an opportunistic gamble that exploits the kinks of the geopolitical show for self-interest, is now in danger of being construed as an affront to the United States and its allies (in protest of Russia’s price cap plans) that are in line with Russia,” he added.

– Abigail Ng

Chinese EV battery maker steadily opened in Hong Kong market for the first time

Electric vehicle battery maker China Aviation Lithium Battery (CALB) traded flat in its first session after raising HK$9.86 billion ($1.26 billion) in its initial public offering. according to deposit.

The offer price was HK$38 ($4.84) ​​per share.

Shares allocated to retail investors in Hong Kong were under-subscribed, with only 21% bought – representing 1% of the total offering.

Leapmotor and Onewo, which fell at the start of trading last week, The underwriting was too low.

– Abigail Ng

CNBC Pro: “There is a lot to buy in China,” says fund manager and calls these two electric stocks

Despite poor returns from China’s stock markets this year, one fund manager believes there are pockets of value in certain “core sectors” even when financial conditions are tough.

Edmund Harris, head of Asian and emerging markets investments at Guinness Asset Management, says companies in electric vehicles, factory automation and sustainable energy are likely to outperform their global peers over the next five to 20 years.

He cited two stocks that might benefit from this topic.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Dietrich says October could be the start of a bullish rally in the market

Although stocks fell on Wednesday, halting a major two-day winning streak, October could still be the start of a new market bull run according to Ryan Detrick, chief market strategist at Carson Group.

“We think this could be the start of a year-end rally of a decent size,” Dietrick said on CNBC’s “Close Bell: Overtime.”

Detrick said this is due, traditionally, to better stock performance in October in midterm years.

He also noted that although the markets ended the day lower, stocks posted a big rally in the afternoon, recovering a lot of losses. This is a positive, according to Dietrich.

– Carmen Renick

CNBC Pro: Is it time to buy low? Some stocks are still trading at lower lows with significant upside

Brought early this week Something from a relief walk for stocks. However, global indices as well as Wall Street indices are still in good shape so far.

This can provide an opportunity for investors who are looking for high quality stocks and future bullishness in a volatile environment.

CNBC Pro examined stocks that are trading within 10% of their 52-week low, but have a buy rating from more than 50% of Wall Street analysts covering them. The stocks have a bullish average target price of 20% or more, and a forecast of earnings growth for 2022 of at least 10%.

Here are the stocks that appeared. CNBC Pro subscribers can read more here.

– Weezin Tan

Fed’s Bostick says these are just the ‘first days’ of fighting inflation

Atlanta Federal Reserve Chairman Rafael Bostik spoke highly of inflation in a speech on Wednesday, saying the central bank still had a lot of work to do before it could declare victory.

“We must remain vigilant because this inflation battle is likely to be in the early days if my expectations are [Federal Open Market Committee] Colleagues are right.”

Bostick added that it will likely “take some time” to bring inflation back to the Fed’s 2% target because “we’re definitely still in the inflationary timber, and we’re not out of it.”

From an interest rate perspective, Bostick said he envisions the Fed’s tax hike to 4%-4.5% before policy makers can take a step back to assess progress. The federal funds rate is currently in the 3%-3.25% range; Forecasts released by the Federal Open Market Committee in September anticipate rates rising to 4.6% in 2023, which puts Bostick slightly on the dovish side of the committee.

However, he added, he would tell anyone who expects the Fed to cut interest rates next year, “not so fast.”

Bostic is not a voting member of the FOMC this year or next, although he can express his political position during meetings.

– Jeff Cox

The trade deficit fell more than expected in August

The US Bureau of Economic Analysis reported on Wednesday that the US trade deficit fell slightly more than expected in August to its lowest level in more than a year.

The trade deficit narrowed to $67.4 billion, down $3.1 billion from the previous month that was slightly better than Dow Jones’ estimate of $67.7 billion. This is the lowest level since May 2021. In March 2022, the deficit hit a record high of $106.9 billion.

The drop in the $3.4 billion goods deficit helped account for most of the decline as the economy returned to higher demand for services.

– Jeff Cox

CNBC Pro: NYU’s Aswath Damodaran names big tech stocks better than ‘traditional safe’ ones

Aswath Damodaran of New York University likes companies that can “withstand a hurricane, disaster if it happens.”

The New York University finance professor, sometimes referred to as the “dean of valuation,” believes big tech stocks can do just that, and reveals what stocks he owns.

Professional subscribers can Read more here.

– Xavier Ong

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