58 minutes ago
Singapore’s non-oil domestic exports decline at slowest pace in a year
The Merlion statue in Singapore, on Tuesday, January 3, 2023. Photographer: Lionel Ng/Bloomberg via Getty Images
Lionel Ng | Bloomberg | getty images
Singapore’s non-oil domestic exports continued to decline in October, but at the slowest pace in a year, government data showed.
Singapore’s NODX fell 3.4% last month, down for the 13th consecutive month. This was also the smallest decline since October 2022.
The decline in October was mainly due to a slowdown in exports of both electronics and non-electronics to key markets such as Taiwan, the US and South Korea.
Last month’s readings still showed a decline compared to the 13.2% contraction seen in September.
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CNBC Pro: Is it time to buy Siemens and HelloFresh after big swings in share prices? Here’s what analysts say
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CNBC Pro: Morgan Stanley analyst takes a cautious stance on Alphabet. here’s why
Google parent company Alphabet has been one of the so-called “Magnificent Seven” stocks that investors have been keeping a favorable eye on this year — but one analyst has some reservations.
Morgan Stanley is overweight on the stock, but equity analyst Brian Novak took a cautious stance when speaking to CNBC, especially when compared with Meta and Amazon.
This comes after the bank cut its price target on Alphabet to $150 from $155, giving it an 11.4% upside from its Nov. 15 close.
CNBC Pro subscribers can read more here.
– Amala Balakrishner
5 hours ago
Dow closed down
The Dow Jones Industrial Average closed lower on Thursday, although all three major indexes posted weekly gains.
The 30-stock index slipped 46 points, or 0.13%, to 34,945.57. The S&P 500 ended the session up 0.12% at 4,508.24, while the Nasdaq Composite climbed 0.07% to 14,113.67.
-Lisa Kailai Hahn
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US-China relations will still be defined by ‘competitive confrontation’, analysts say after Biden-Xi meeting
Wednesday’s high-stakes Biden-Xi meeting gave analysts little reassurance that the two countries are willing to establish a line of communication,But it also maintained confidence that US-China relations would remain competitive.
“We think the meeting reflects both sides’ intent to restore bilateral ties. This could help reduce near-term risks of escalating conflict,” Morgan Stanley analyst Robin Xing wrote in a Thursday note. ” “But ‘competitive friction’ will likely remain for now, which does not mean complete separation, but instead continued technological competition and reduced risks from China.”
It also signals a continued decline in foreign direct investment and technology diffusion into China, which could impact China’s long-term development outlook, Xing said. Going forward, the analyst believes more stimulus and reforms are needed in China to help stabilize market confidence in the country.
“As China risks getting stuck in a debt-deflation cycle, we think efforts to diversify supply chains and strengthen its economic ties with other major trading partners, as well as foreign investors, are important,” Xing said. “More growth opportunities are needed to sustain.”
According to Piper Sandler analyst Andy Laperriere, economic and geopolitical relations between the US and China will remain locked in competition. The two countries are in a “cold war”, he said, adding he expects the US to maintain its tariffs on Chinese imports and further tighten restrictions on what China can buy and how US businesses can invest in China.
– Piya Singh
6 hours ago
BTIG says soft inflation data does not mean good news for the market right now
November’s red-hot stock rally means some investors believe the Federal Reserve may be making a soft landing. But BTIG analyst Jonathan Krinsky isn’t so quick to jump to conclusions.
“Oilies will cite inflation data and the resilience of cap-weighted indices as signs that the ‘soft-landing’ is here. Bears will cite slow macro data, company-specific commentary and the persistent weakness of average stocks as signs That a ‘hard landing’ is on the horizon,” the analyst wrote. “We find ourselves in the latter camp, and today’s data and price action are certainly not doing much to discourage us from that approach.”
Krinsky said historical track records also show a similar pattern of rallies before recessions.
“If we look at all the pre-COVID recessions over the last 50 years (’07, ’01, ’90, ’80-’82, and ’74), the common feature was that there was a period when rates were falling and “Stocks were falling and rising. Eventually as the reality of the recession set in, stocks started falling,” he said.
The biggest signal for bearishness would be any sign of “meaningful weakness” from mega-cap tech stocks with lower rates, the analyst said.
-Lisa Kailai Hahn
6 hours ago
US crude oil falls as supply increases amid demand concerns
U.S. crude oil prices fell 5% on Thursday as inventories rose while slowing industrial activity raised concerns about softening demand.
The West Texas Intermediate December contract fell $3.76, or 4.9%, to $72.90 a barrel, while the Brent January contract fell $3.81, or 4.69%, to $77.37 a barrel. Both US crude and global benchmarks were trading at their lowest levels since early July.
US crude inventories rose by 3.6 million barrels this week, while the Federal Reserve reported that industrial production and manufacturing declined in October.