news Hong Kong stocks temporarily rose 2%.China reports inflation data in line with expectations

Wall Street professionals are increasingly warning of a looming recession.

With slowing economic growth and prolonged inflation, how should investors position themselves? Veteran investor Nancy Tengler shares her favorite dividend stocks with CNBC.

Pro subscribers can read more here.

— Xavier Ong

Steven Lynch, managing director of the British Chamber of Commerce in China, said Beijing’s “U-turn” on the fight against the coronavirus has led to both confusion and optimism.

“There’s a lot of optimism and hope for 2023, but a huge amount of turmoil,” he told CNBC’s “Squawk Box Asia,” adding that the departure from strict Covid rules “almost overnight.” I explained what was happening.

He said there could still be a “great contradiction” between local policies and central government rules, and people were still worried about getting sick.

“It is very clear that Covid is here now. Covid is quite prevalent here in Beijing, and I think it brings a whole new set of challenges to what China faces,” he said. rice field.

— Abigail Ng

China’s inflation is likely to remain below 3% over the next 12 to 18 months, with the central bank happy with the range, according to Credit Suisse Greater China Chief Investment Officer Jacques Siu. It says.

“I don’t think the CPI will be a problem in China. In fact, it will remain stable within this 1% to 3% range for the foreseeable future,” he told CNBC’s “Street Signs Asia.” . Inflation surged in many countries, but consumer prices in China remained moderate due to weak demand.

But China is likely to see a “rebound in consumer activity” in the next six months as people adjust to life with the virus after several back and forths in reopening the economy, Siu said. said.

“We expect GDP to pick up to 6.1% in the second quarter, which is partly a base effect as people live more normally,” he said.

— Abigail Ng

China’s producer price index fell 1.3% in November compared to a year ago, falling 1.4% more than expected in a Reuters poll after falling 1.3% in October. slightly exceeded.

The national consumer price index rose 1.6% on an annualized basis in November, in line with expectations and easing from 2.1% in October.

The onshore and offshore Chinese yuan rose to around 6.94 per dollar shortly after the economic data was released.

— Li Yingxiang

China’s easing of some Covid-19 restrictions could boost prices for some of the world’s consumer tech companies, with four companies’ stocks potentially up more than 40%, according to HSBC.

The Asia-focused bank said a faster-than-expected recovery in consumer electronics in the coming months would benefit those companies.

CNBC Pro subscribers can read more here.

— Ganesh Rao

South Korea posted a current account surplus of $880 million in October, down from $1.6 billion in September.

South Korea’s direct investment assets increased by $2.75 billion from $4.74 billion the previous month. Direct investment debt he increased from $430 million to $810 million.

South Korea has a current account surplus all year round, with the exception of July and August. A current account surplus indicates that a country sells to the world more than it buys from abroad.

— Li Yingxiang

The S&P 500 posted its longest losing streak since October and stocks closed higher.

The S&P rose 0.75% to close at 3,963.51. The Dow Jones Industrial Average rose 183.56 points (0.55%) to settle at 33,781.48, while the Nasdaq Composite rose his 1.13% to close at 11,082.00.

— Samantha Soobin

Home financing costs have fallen for the fourth straight week, according to Freddie Mac.

Average weekly interest rates on 30-year mortgages have fallen to 6.33% today from 6.49% last week. Interest rates on these loans have fallen about 75 basis points over the past month. The average fixed 30-year mortgage rate on November 10th was 7.08%.

While declining in the short term, mortgage financing costs are up significantly from a year ago. At this point last year, 30-year mortgage rates averaged 3.1%.

Demand for mortgages continues to decline despite falling interest rates. Mortgage applications last week fell 1.9% from the week before, according to the Mortgage Bankers Association.

— Darla Mercado, Diana Orrick

The inversion in the 3-month and 10-year Treasury yield curve is now at its deepest since January 2001, almost 90 basis points, according to CNBC data. It surged to 4.30% from just 0.05% at the beginning of the year as traders set higher interest rates.

When short-term Treasury yields exceed long-term yields, the yield curve inverts. Many economists believe his 2-10-year portion of the yield curve is more predictive of a potential recession.

Kathy Wood points to the most inverted part of the yield curve since the early 1980s. A popular investor said the bond market showed the Federal Reserve was making a “grave mistake” with its jumbo rate hike.

— Yun Lee