Nikkei 225 touches 33-year highs on Monday, highest since May 1990
On Monday morning, Japan’s Nikkei 225 reached a high of 33,848.98, briefly touching a 33-year peak, surpassing its previous high of 33,753 seen on March 7, and marking its highest level since May 1990. However, after surpassing this high, the index soon saw a 0.07% decrease compared to its last close.
China keeps loan prime rates steady
China’s central bank has decided to keep its one-year and five-year loan prime rates at 3.45% and 4.2% for November. This is the third straight month that the bank has kept the one-year LPR unchanged after lowering it from 3.55% to 3.45% in August. The five-year LPR has been held at 4.2% for five consecutive months, having been last lowered in June from 4.3%.
Analysts expect China to continue holding loan prime rates unchanged
Analysts at Commerzbank expect the People’s Bank of China to leave its loan prime rates unchanged as it announces its rate decision later in the day. They anticipate that commercial banks will keep the one-year and five-year LPR unchanged at 3.45% and 4.2%, respectively. Analysts also noted that commercial banks have been lowering their effective lending rates, including mortgage rates, to conform with the authorities’ latest credit and property policy easing.
Alibaba shares drop after company scraps cloud computing business spin-off
Chinese e-commerce giant Alibaba saw its shares decline after the company announced that it was scrapping plans to spin off and list its cloud computing business. Some analysts on Wall Street have welcomed the move while others have reacted negatively to the decision. More can be found in CNBC Pro.
Oil rebounds after selloff
Oil prices saw a rebound after a previous sharp selloff had pushed U.S. crude into a bear market earlier in the week. U.S. crude rose by $2.99, or 4.10%, to settle at $75.89 a barrel, while the Brent contract for January jumped $3.19, or 4.12%, to settle at $80.61 a barrel.
Inflation concerns during earnings calls hit lowest in more than 2 years
The mention of “inflation” during recent earnings calls has hit a low, indicating that company executives are becoming less concerned about inflation. Some 276 out of the S&P 500 companies reporting so far have cited “inflation” as an important factor during analyst calls, which is the lowest number going back to the second quarter of 2021.
Record amount of options set to expire, could bring volatility
A record amount of options is set to expire, which is expected to bring some volatility to Friday’s trading session. Goldman Sachs analyst John Marshall estimated that $2.2 trillion of notional options exposure will expire on Friday. Stocks rallied on softer inflation data despite enduring consumer risks, says Wells Fargo. Stocks rallied in response to softer-than-expected inflation data and a pause in global tension escalation, according to Wells Fargo.