Live Updates, BOJ Minutes, Japan CPI

Malaysia’s inflation rate fell to 1.5% in November from 1.8% in October and hit its lowest level since February 2021.

The November reading was lower than the 1.7% expected in a Reuters poll of economists. On a month-on-month basis, inflation was flat in November, having risen 0.1% in the previous month.

According to the Department of Statistics Malaysia The lower rate of inflation was driven by lower price increases in areas including restaurants and hotels, food and non-alcoholic beverages.

– Lim Hui Jee

Oil prices rose again on Friday, a day after Angola announced its withdrawal from the Organization of the Petroleum Exporting Countries, or OPEC.

Brent crude futures for January delivery rose 0.83% to trade at $80.05 a barrel, while West Texas Intermediate rose 0.88% to $74.54.

Angola announced Thursday It will quit OPEC, with the country’s oil minister saying the ban no longer serves the country’s interests. According to a Reuters report.

– Lim Hui Jee

Bank of Japan board members discussed how to communicate a change in the central bank’s yield curve control policy in October. The minutes of the meeting revealed.

The BOJ adjusted its yield curve control policy in October, leaving the target level for the 10-year Japanese government bond yield at 0%, but instead “targeting” an upper limit of 1%. A tight hat.

Some members felt it necessary to emphasize that despite the move, the BOJ still intends to continue demonetization with the YCC.

A member also said the bank should make it clear that the move was not taken as preparation for ending the YCC and negative interest rate policy.

Another BOJ board member pointed out that the bank should clearly explain that its policy decisions are based on the outlook for economic activity and prices to avoid unnecessary market speculation.

“This forces the BOJ to take policy decisions to follow fluctuations in market rates to avoid encouraging speculative transactions,” the member said.

– Lim Hui Jee

of Japan Core inflation The rate fell to 2.8% in November – its lowest level since July 2022 – from 3.3% in October.

Core inflation, which strips out fresh food prices, fell to 2.5% in November from 2.9%, in line with economists’ expectations polled by Reuters.

it will be called so “Core-Core” Inflation, which strips out prices of both fresh food and energy, was 3.8%, down from 4% in October. It is a key metric considered in the Bank of Japan’s monetary policy decisions.

According to Goldman Sachs, interest rates appear to have peaked, and growth stocks are an area to watch right now.

“As interest rates appear to be peaking, net growth…reveals a period when sustainable farmers are more defensive,” the investment bank wrote in a December note.

Last week, the U.S. Federal Reserve indicated that three cuts would come in 2024, ending a cycle of 11 hikes. Rate hikes are generally not good for growth stocks.

Goldman performed two stock screens for its pure-growth and sustainable breeder varieties.

CNBC Pro subscribers can read more here.

– Weissen Don

Wall Street is gearing up for a “Santa Claus rally” — which refers to the general gains of the final five trading days of the year, and the first two of the new year — this holiday season. This year, the season starts on Friday, January 3.

Since 1969, the S&P 500 has gained an average of 1.3% during this period, says Jeff Hirsch, editor of The Stock Trader’s Almanac. But the author noted that the failure of the Santa Claus rally was a prelude to historically poor stock performance.

“Failure to stage a Santa Claus rally precedes bear markets or periods of low stock buying later in the year,” Hirsch wrote. Blog. “Town SCRs had flat years in 1994, 2005 and 2015, two worst bear markets in 2000 and 2008 and ended in February 2016.”

“As Yale Hirsch’s now-famous line goes, ‘If Santa Claus fails to call, the bears may come to Broad and Wall,'” Hirsch added.

Yale Hirsch, founder of the Stock Trader’s Almanac, coined the term.

– Sarah Min

The S&P 500 is poised for another week of gains, extending its winning streak to the longest it has seen in six years.

The broader index added 0.3% this week, on track for an eighth consecutive positive week.

This would mark its longest weekly winning streak since 2017. That year, the index rose for eight weeks between September and November.

The rally has helped the benchmark rise near all-time highs closely watched by investors.

A third reading of real GDP came in lower than expected.

Real GDP rose at a 4.9% annual rate in the third quarter, according to the third estimate Bureau of Economic Analysis. That was down from a 5.2% increase in the second estimate, and less than the 5.1% rise expected by economists polled by Dow Jones.

In the second quarter, real GDP increased by 2.1%.

– Sarah Min