China LPR, Japan CPI, PMI, trade balance
35 Mins Ago
China property stocks drop after Friday’s rally
Shares of Chinese property developers in Hong Kong fell on Monday after wrapping up last week on a high note.
China’s central bank held its five-year loan prime rate steady at 3.95% on Monday. It acts as a key reference for property mortgages.
This comes after the world’s second-largest economy rolled out measures to boost its property market, including cutting down payments and removing the floor on minimum mortgage interest rates, sending real estate stocks soaring on Friday.
Logan Group and Cifi Holdings led declines on Monday, down 6.02% and 5.56%, respectively; Longfor Group was down 4.82%, while China Vanke slid about 2%. The Hang Seng Mainland Property Index on inched 1.68% lower.
An Hour Ago
China leaves loan prime rates unchanged
China’s central bank governor said there was room to further cut banks’ reserve requirements, and pledged to utilize monetary policy to prop up consumer prices.
Bloomberg | Bloomberg | Getty Images
China’s central bank left its one- and five-year loan prime rates unchanged at 3.45% and 3.95%, respectively.
The one-year LPR is seen as the peg for most household and corporate loans, while the five-year rate is the benchmark for most property mortgages.
The decision was in line with a Reuters poll that expected both rates to stay unchanged.
China on Friday announced measures to boost its debt-laden property market.
— Shreyashi Sanyal
Fri, May 17 2024 4:06 PM EDT
Dow closes at a record high above 40,000
Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2024 in New York City.
Angela Weiss | AFP | Getty Images
The Dow Jones Industrial Average rose to another record close on Friday afternoon.
The 30-stock index rose 134.21 points, or 0.34%, to settle at 40,003.59. The benchmark had first crossed over the 40,000 mark for the first time on Thursday morning.
The S&P 500 also added 0.12% to close at 5,303.27. On the other hand, the Nasdaq Composite shed 0.07%, finishing at 16,685.97.
— Lisa Kailai Han
Fri, May 17 2024 2:26 PM EDT
The Fed will cut rates this year upon a ‘return of disinflation,’ UBS says
Softer economic data in recent weeks bolsters the argument that investors may finally receive some much-anticipated rate cuts in 2024, UBS argued in a Friday note.
“We continue to believe recent economic data underpin our view that a return of disinflation should allow the Fed to start easing policy later this year,” the bank wrote.
UBS added that price pressures have also been easing in recent months in categories such as shelter, which should help bring down overall inflation.
— Lisa Kailai Han
Fri, May 17 2024 12:59 PM EDT
Stocks will experience near-term choppiness followed by a late-year rally, Wells Fargo says
Stocks have rallied to record highs recently, but Wells Fargo is expecting this trend to turn on its head.
Analyst Christopher Harvey pointed out that the “bad news = good news” narrative has pushed the major stock indexes to new records. However, he believes the market is unlikely to continue pushing higher consistently, at least for now.
“Expect near-term choppiness with a late-year rally toward our SPX 5535 target,” he wrote.
Harvey’s year-end S&P 500 target represents a 4.5% move upward for the benchmark.
— Lisa Kailai Han
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