Red. All sectors seem to be in the red. It is finanis, tax space, energy as well oil prices below 90. The higher for longer eario is sinking in. We are starting to feel it. Hongkong, back online. Rishaad we are from hepeak in january, the hang seng down 23 year to date. Carnage taken place for equities as well. Lets take a look at thailand. The dollar again appreciated and against the bought. Appreciating against the currency. The nifty down as well. They had a public holiday. Looking at what we have in terms of australian assets. The decision is coming. The 10 year yield the rba governor michelle bullet text the rain for the first meeting. Yvonne dollaryen, getting closer to 150. We will see if we see anymore action. The 10 year yield still holdng. The aution will be one to watch at the bottom of this hour. Given the tumultuous selloff that we are seen across fixed income markets are what sort of demand will we see today . That is the question. Rishaad indeed it all comes against the
Get a lot of top ten pick lists for q4. Some do include the magnificent seven. Which sold off heavily in september. Topping the tape, after a rough few months, two months, that have tested the markets up trend, the question, has there been enough pain to generate gains . Cnbcs Senior Market commentator mike santoli joins us. We had a selloff. Didnt feel panicky. It didnt tip us into outright panic. Below the surface a little worse than that. The median stock off 15 , 16 from its high, not over the same two months. In general theres been a general retrenchment. Equal weighted youre flat for the year. I think youve seen some areas of stress pop up. Youve seen some positioning numbers suggest a lot more aggressive shorting, a lot of people cutting back on risk. That being said, we stopped short of some of the real tests that i think people were watching for. Last week, everyone knows the market was looking oversold. Everyone knows the seasonal tailwinds start to kick in in coming weeks. M
For stocks. A little bit of upside on the nikkei at the start of trade. We are still seeing dollar yen hovering at 155. 6. Of course its about whether we get any indication about curtailing of bond purchases from the Japanese Central bank. Seems like the bond markets are betting we do coming on the japanese 10 year government bonds. Lets take a look at what we are seeing in south korea. Yesterday we saw those declines on stocks as the metaearnings and outlook put a dent in what was otherwise a recovery for asian stock markets. Taking stock, weve seen four of the seven banks report and so far it looks quite good, especially after microsoft and alphabet knocked things out of the park, proving their worth and that they are able to make money from aia investments. Weve seen the upside in south korea as well, the korean won moving toward 1370. Lets look at whats going on down under. Australia was on break yesterday. The big news was how bhp is having a takeover approach for the rival Anglo
Things have changed, we have different numbers. New highs for 2024. The two youre getting closer to 5 two year. The quote of the last 24 hours around this desk, jp morgans david kelley, the sound of their slingshot on a june cut. Lisa stephen of standard charting, rbc, we are changing our fed call from 45 basis points to one of a duty five basis point move. Yesterday we saw the biggest self, the biggest yields since 2022 and it seems there might be more. Annmarie everyone is trying to revise. Starting to revise. This really seals the fate for the june fomc to push this further back. If we came into this year expecting when will the fed cut, and that is a matter of some people asking if the fed will have a cut in 2022 in 2024. Jonathan two big headlines crossing bloomberg earlier, triggers parenting rate cutlets to less than 25 basis points. Look at for exchange, the euro, 1. 07. The dollar having its biggest oneday since the banking stress of last spring. Dollar, 152. Never mind, it is
Dow was down 2. 25 . If you look at what has been happening with treasury yields, this is the question. Will the fed cut and by how much the question is when. The tenyear note at 4. 44. We have seen yields push up. I think traders are actually betting that two rate cuts are more likely this year. Just seeing that in the fed futures at this point. We get inflation data this week with the cpi. That is key. Last week, we were talking about the jobs report and people were saying the Inflation Numbers are more important. The jobs number is big. We will talk to Mohamed Elerian about the topic later. And breaking news. The Biden Administration announcing funding from the chips act. Taiwan semiconductor is giving 6 billion in grants and 5 billion this loans for the factory in phoenix and then a third was announced. Gina raimondo will be on squawk on the street to talk about the chips act and the award at 9 30 a. M. Eastern. That is good news for Taiwan Semiconductor and good news for america.