Fitch expects house prices in Australia and China to decline in 2023
Fitch Ratings expects Australian house prices to see a significant decline of between 7% and 10% next year, it said in its latest forecast report.
The agency also forecast that home prices in China would fall by 1% to 3% next year.
“We expect prices to decline further in 2023 before bottoming out, but mortgage performance to deteriorate only slightly in the face of economic headwinds,” Tracy Wan of Fitch Ratings said in the report.
However, Japanese home prices may buck the trend to rise 2% to 4% in 2023, the report said. Prices in Australia are expected to rise in 2024.
– Jihe Lee
Japan’s economy shrank less than expected in the third quarter
Japan’s economy shrank 0.8% on a quarterly basis in the third quarter, with revised gross domestic product beating expectations in a Reuters poll for a 1.1% contraction.
The government’s first preliminary estimate, published in November, was a 1.2% decline.
The nation also posted a ¥64.1 billion ($469.3 million) deficit in the unadjusted current account balance, government data shown The report significantly missed forecasts for a surplus of 623.4 billion yen in a separate Reuters poll.
– Jihe Lee
Australia’s trade surplus was larger than expected in October
Australia’s trade surplus for October hit A$12.2 billion ($8.19 billion), slightly larger than expected, official data showed.
Economists polled by Reuters had forecast a print of A$12.1 billion, expecting a further decline from the report – after the economy posted a trade surplus of A$12.4 billion.
Exports fell by 0.9% and imports by 0.7%.
— Abigail Off
Stocks close mostly lower
Stocks closed mostly lower on Wednesday, with the S&P 500 down 0.19% to close at 3,933.92.
The Dow Jones Industrial Average closed flat, or 1.58 points higher, to end the session at 33,597.92. The Nasdaq Composite fell 0.51 percent to 10,958.55.
— Samantha Subin
CNBC Pro: Bank of America says these two global chip stocks could drive 75% of EV sales
A shortage of semiconductors during a boom in electric vehicle sales could help boost profits for a handful of chipmakers, according to Bank of America.
The Wall Street bank predicted that share prices of two chip stocks could rise more than 75% on the back of this trend.
– Ganesh Rao
Pending economic data could start a rally next year, says Morgan Stanley’s Slimman
Don’t be surprised if economic data coming out next week kicks off a rally into the end of the year and potentially into 2023, according to Andrew Slimman, senior portfolio manager at Morgan Stanley Investment Management.
The key period of data releases begins on Friday with the producer price index, followed by November’s consumer price index and another likely rate hike by the Federal Reserve next week.
“The last time they were released, they all led to a rally in the stock market because we had better inflation footprints,” he said.
Like many investors, Slimmon expects a decline given the inverted yield curve, but he doesn’t foresee the “big earnings crash” or decline that many are predicting in the first quarter.
This is partly because many consumers have increased their savings in recent years given the proximity of the last recession.
“The message for this year is that the economy has turned out to be a lot more resilient than a lot of people expect, and I don’t think the next quarter will be the end of that,” he said.
— Samantha Subin
CNBC Pro: Is Apple a stock to buy or avoid? Two investors collide
It’s been a tumultuous year for tech companies as investors flee growth stocks in the face of rising interest rates and other headwinds.
An apple held its own better among the technological carnage, although there were some headwinds.
Two Investors Confronted CNBC’s “Street signs Asia” on Wednesday to present arguments for and against buying the stock.
— Weizhen Tan
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