New Zealand Interest Rate Hikes, Inflation Data

New Zealand dollar strengthens after biggest rate hike

The New Zealand dollar strengthened to 0.6192 against the greenback after the central bank raised rates by 75 basis points, its biggest increase on record.

The NZD last traded at 0.6170 against the dollar and New Zealand’s NZX 50 Index fell 0.8%.

The New Zealand 10-year Treasury yield briefly touched 4.305% shortly after the decision, last trading at 4.235%. Yields move inversely to prices, and one basis point is equal to 0.01%.

–Lee Yingshan

Singapore publishes reduced GDP estimates for 2022

Singapore’s economy is projected to grow by around 3.5% in 2022, according to forecasts by the Ministry of Trade and Industry, citing an outlook of weakening foreign demand following Europe’s energy crisis and ongoing Covid-related restrictions. from China.

The figure is a reduced estimate from its previous projected range of 3-4%, and reflects 4.1% annualized growth in the third quarter and 1.1% growth in the prior quarter.

The ministry also said it expects the nation’s GDP growth for 2023 to be between 0.5% and 2.5%.

—Jihye Lee

New Zealand central bank raises rates by 75 basis points

The Reserve Bank of New Zealand raised its key cash rates by 75 basis points, its biggest increase on record, to 4.25%.

The decision is in line with analysts’ expectations, according to a Reuters poll.

It is the ninth consecutive hike since the RBNZ first started its rate hike cycle in October 2021, five of which were 50 basis point hikes.

New Zealand inflation currently sits at 7.2%, just below three-decade highs.

—Lee Yingshan

Investors should rotate to second-tier Chinese tech stocks: UBS Global Wealth Management

Investors should take advantage of the bumpy ride in Chinese tech stocks to shift to smaller, less-established companies, according to Eva Lee, head of China equities at UBS Global Wealth Management’s investment headquarters.

“Under current regulation, second-tier players will do better than top players. Take this opportunity to rotate to second-tier companies,” such as those with resilient revenue, he told CNBC’s “Street Signs Asia.”

In addition, the tech giants are perceived to be “macro-recoverers.” [proxies]and the road to an eventual full reopening “is going to be bumpy, it’s going to be bumpy,” he said.

“We will move there eventually, but it takes time,” he said.

—Abigail of

Stocks rise, the S&P 500 closes above the key 4,000 level for the first time since September 1.

Stocks rose on Tuesday with all three major averages gaining more than 1% as Wall Street bet interest rate hikes and inflation will ease towards the end of the year. The S&P 500 also closed at a level not seen since September.

The Dow Jones Industrial Average closed 397.82 points, or 1.18%, higher at 34,098.10. The Nasdaq Composite also gained 1.36% to 11,174.41.

The S&P 500 rose 1.36% to close at 4,003.58, its first close above the 4,000 level since September.

—Carmen Reinicke

84% of today’s S&P 500 19 52-week highs are all-time records

Nineteen stocks in the S&P 500 have hit 52-week highs so far on Tuesday, and of those, 16 (84%) have also hit all-time highs. Three of the 19 (TRV, MRK, IBM) are also in the Dow Jones Industrial Average, and two of them are among all-time highs:

  • General Parts Co. (GPC), the highest since a 1948 initial public offering
  • O’Reilly Auto (ORLY), all-time high since 1993 IPO
  • TJX Cos. (TJX) hits all-time high since 1987 IPO
  • General Mills (GIS), all-time highs dating back to 1927
  • Monster Beverage (MNST), all-time high since predecessor’s listing on Nasdaq in 1992
  • Pepsico (PEP), the highest in history, since the merger of Pepsi-Cola with Frito-Lay in 1965
  • Marathon Petroleum (MPC) Hits All-Time High Back to Marathon Oil Spin-Off in 2011
  • Aflac Inc. (AFL), of all time via CNBC data history in 1973
  • Arthur J Gallagher (AJG), all-time high since the 1984 IPO
  • Globe Life (GL), all-time high since predecessor data in 1980
  • MetLife (MET) all-time high going public again in 2000
  • Progressive (PGR), all-time high since the 1971 IPO
  • Travelers (TRV), all-time high since the Citi spin-off in 2002
  • Gilead Sciences (GILD), the highest since April 2020
  • Merck & Co. (MRK), all-time high in CNBC history beginning in 1978
  • PACCAR (PCAR) hits all-time high since 1971 IPO
  • Quanta Services (PWR) hits all-time high since 1998 IPO
  • Snap-On (SNA), the highest since June 2021
  • International Business Machines (IBM), the highest level since February 2020

There were two 52-week lows in the S&P 500 early Tuesday:

  • Tesla (TSLA), the lowest since November 2020
  • Medtronic (MDT), the lowest since March 2020

No comment.

—Scott Schnipper and Christopher Hayes

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