South Korean retail sales see third month of declines, industrial production recovers
South Korea’s retail sales fell 1.8% year-on-year in November, a further decline after a 0.2% fall in October, government data showed.
Meanwhile, industrial production rose 0.4% for the month, recovering slightly after previously seeing four straight months of declines.
South Korea is expected to release its consumer price index on Friday, in which economists polled by Reuters expect inflation to cool further at 5%.
– Jihy Lee
Oil prices are falling as China’s reopening optimism fades
Oil prices fell marginally as China continues to see a rising number of Covid cases, as well as a pressure on medical resources bubbling optimism about the country’s reopening and outlook for fuel demand.
Brent crude futures fell 0.46% to $82.88 a barrel. Likewise the US West Texas Intermediate fell 0.49% to $78.58 a barrel.
“Even the China reopening narrative may be hampered by a record outbreak of Covid in China,” Mizuho Bank’s Vishnu Varathan wrote in a note, adding that the reopening should also not be mistaken for “lasting immunity” against global recession risks .
— Lee Ying Shan
Apple’s Asian suppliers are falling after the technology giant’s shares hit a new low
Italy makes Covid testing mandatory for travelers from China: Reuters
Italy will require all incoming travelers undergone from China Covid testingReuters reports its health minister, after authorities in Milan reported that nearly 50% of passengers on two flights from China tested positive.
It has not been specified what measures would be imposed on arrivals who test positive, Reuters reported.
Separately, the UK is considering following suit after the US announced mandatory testing on arrival from China Telegraph reported.
— Lee Ying Shan
CNBC Pro: Tech is ‘down but certainly not out’ — watch these stocks in 2023, fund manager says
It’s been a bad year for technology companies, with many investors wondering when technology stocks will recover.
Tech fund manager Jeremy Gleeson of AXA Investment Managers told CNBC Pro Talks last week that he still believes in the sector.
He explains why and names the shares to buy.
— Weizhen Tan
Crypto exchange Kraken to cease operations in Japan
Digital currency exchange Kraken announced to cease operations next month in Japan and deregister from the Japanese Financial Services Agency on January 31, 2023.
The exchange cited a confluence of “current market conditions in Japan” and a “weak crypto market globally” as reasons for the move.
The decision was also part of Kraken’s effort to “prioritize resources and investments in those areas that align with [its] strategy and will best position Kraken for long-term success.”
—Ryan Browne, Lee Ying Shan
The US will require a negative Covid test from Chinese travelers
Airline passengers entering the US from China must have a negative Covid testa federal health official announced Wednesday.
The rule will take effect on January 5 and will apply to all travelers who are at least two years old from China, Hong Kong and Macau. The rule applies regardless of nationality or vaccination status.
After trying a Covid-zero policy for much longer than other major countries, China is now seeing a surge in infections after rolling back public health restrictions in recent weeks.
— Jesse Pond
Apple breaks the main technical level and hits a new low in 52 weeks
Apple fell through the key level of $129 and reached a new 52-week low for a second day on Wednesday.
Some analysts view Apple, the stock with the largest market capitalization, as a proxy for the overall market and a major influence on investor sentiment.
“It’s not great for the overall market,” said Todd Sohn, technical analyst at Strategas. “The end of the year is a funky time, but if it continues into the first few weeks of the year, it’s real.”
Apple fell through $129 support during early trading Wednesday, reaching a low of $126.41 before reversing. The stock was at $127.15 in afternoon trading.
“If your biggest weight is weak and making new lows, that’s not great. Your top player isn’t scoring,” he said. Sohn said the five largest market cap names are still losing momentum. “The silver lining is that the influence on the (S&P 500) index is diminishing.”
CNBC Pro: China Eases Its Covid Restrictions. That could mean a buying opportunity in these stocks
A reopening of the world’s second largest economy could be a buying opportunity for investors as China lifts many of its Covid restrictions.
Investors have taken the recent developments as a signal to pick up Chinese equities. They expect the Chinese economy could be boosted in 2023, while the US and Europe continue to suffer from the lagging effect of monetary tightening that could dampen economic growth.
“Many institutional investors have been very underweight Chinese equities,” said Carlos Asilis, co-founder and CIO of Glovista Investments.
And I think that’s been a mistake because it’s ignored this very important potential baseline scenario that’s now being priced in, which is that of the Chinese economy following a similar recovery path next year that we saw this year in the case of the United States. he added.
— Sarah Min