Hong Kong shares up 2%; China releases inflation data in line with expectations

Wall Street professionals are increasingly sounding the alarm about a looming recession.

With economic growth slowing and inflation staying higher for longer, how should investors determine where they stand? Veteran investor Nancy Tengler shares her favorite dividend stocks with CNBC.

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– Xavier Ong

Stephen Lynch, managing director of the British Chamber of Commerce in China, said Beijing’s “U-turn” on Covid policies is driving confusion and optimism.

“There’s a lot of optimism and hope for 2023, but there’s an awful lot of confusion,” he told CNBC’s “Squawk Box Asia,” describing the departure from strict Covid rules as happening “overnight.”

He said there may still be “enormous discrepancies” between local policies and central government rules, and people are still concerned about the disease.

“One thing is very clear that Covid is here now. Covid is very prevalent here in Beijing. And I think that brings a whole new set of challenges to what will face China,” he said.

– Abigail Ng

China’s inflation is likely to remain below 3% for the next 12 to 18 months, and the central bank is comfortable with that range, according to Jacques Sioux, chief investment officer for Greater China at Credit Suisse.

“We don’t think CPI is 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 rose in many economies, but consumer prices in China remained moderate due to weak demand.

But Seo said China is likely to see a “revival in consumer activity” in the next six months as people get used to living with the virus after some went back and forth in reopening the economy.

“In the second quarter, we expect GDP to rise to 6.1% – partly from its base effects, partly because people are living more normally,” he said.

– Abigail Ng

China’s producer price index fell 1.3% in November from a year ago, extending a decline after losing 1.3% in October, and slightly beating estimates for a 1.4% contraction in a Reuters poll.

The country’s consumer price index rose 1.6% in November on a yearly basis, in line with expectations and down from October’s reading of 2.1%.

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

– Lee Ying Chan

Some global consumer technology companies may benefit as China eases some Covid-19 restrictions, and shares of four companies could rise more than 40%, according to HSBC.

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

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– Ganesh Rao

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

Direct investment assets in South Korea increased by $2.75 billion, compared to $4.74 billion a month earlier. Direct investment liabilities increased from $430 million to $810 million.

South Korea has been posting a current account surplus for the year, with the exception of July and August. A current account surplus indicates that a country is selling more to the world than it is buying from outside its borders.

– Lee Ying Chan

Stocks closed higher, as the S&P 500 snapped its longest losing streak since October.

The S&P added 0.75%, ending at 3,963.51. The Dow Jones Industrial Average rose 183.56 points, or 0.55%, to settle at 33,781.48, while the Nasdaq Composite rose 1.13%, closing at 11,082.00.

– Samantha Sobin

The cost of home financing is down for the fourth consecutive week, according to Freddie Mac.

The weekly rate on the 30-year mortgage is now 6.33%, down from 6.49% last week. Over the past month, the interest rate on those loans has fallen about 75 basis points: On November 10, the average rate for a 30-year fixed-rate mortgage was 7.08%.

Even with the short-term downturn, the cost of financing a home loan is significantly higher than it was a year ago. This time last year, the rate for a 30-year mortgage was 3.1%.

Despite lower interest rates, the demand for home loans continues to decline. The volume of mortgage applications It fell 1.9% last week, compared to the week before, according to the Mortgage Bankers Association.

– Darla Mercado, Diana Olick

The inversion of the 3-month and 10-year Treasury yield curve is now the deepest since January 2001 at about 90 basis points, according to CNBC data. The short end of the curve rose to 4.30% from just 0.05% at the start of the year as traders priced in higher interest rates.

The yield curve inverts when short-term treasury rates rise above long-term yields. Many economists view the 2-10-year portion of the yield curve as more predictive of a potential recession.

Cathy Wood pointed out This part of the yield curve, It is the most reflective since the early 1980s. The famous investor said that the bond market is signaling that the Fed is making a “big mistake” by raising massive interest rates.

– Yun Lee