2 Hours Ago
Japanese yen recovers 4.5% against U.S. dollar, set for best week in over a year
The Japanese yen was trading at 152.93 against the U.S. dollar, and was set to end its best week in over a year, despite hitting its weakest level since 1990 on Monday at 160.03.
Analysts, including from BofA, have suggested there were likely two interventions carried out by Japanese authorities during the week, on Monday and Wednesday. The authorities are yet to make an official statement to confirm the interventions.
“The government has been refusing to disclose whether they’ve been intervening or not, but I don’t think many people have any doubts,” Nicholas Smith, Japan strategist at CLSA, told CNBC.
The yen has recovered some 4.5% since it hit a 34-year low on Monday.
2 Hours Ago
A weaker yen is not entirely unwelcome, HSBC says
HSBC said in a client note that yen weakness plays a key role in “reflating” Japan’s economy, a goal that the Bank of Japan expects to achieve this year.
“After years and years of losing competitiveness, exporters are at last feeling the lift from exchange rate realignment. And, one might suspect, an even weaker exchange rate, and for longer, may be needed, to turn the lift into an enduring manufacturing renaissance,” Frederic Neumann, chief Asia economist at HSBC said.
Neumann said the weaker yen is boosting Japan’s service sector via tourism, in turn helping lift inflation expectations.
“A weaker yen, in other words, is not entirely unwelcome, as long as the decline is orderly. Thus, don’t expect the BOJ to rush into aggressive tightening just because the exchange rate is wobbly,” Neumann added.
— Shreyashi Sanyal
9 Hours Ago
CNBC Pro: Goldman says these global stocks will soar on an $857.5 billion electrification boom – gives one 45% upside
Demand for power and data centers has been taking the world by storm, and its not just the U.S. tech giants that are set to benefit, according to Goldman Sachs.
Europe is set see a pick up in demand and electricity consumption by as much as 50% in the next 10 years – reversing the slump it has been facing since 2008, the investment bank’s analysts noted.
The massive growth translates to an investment of nearly 800 euros ($857.5 billion) in Europe’s power transmission and distribution network, they added, naming stocks with over 30% upside potential on their radar.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
9 Hours Ago
CNBC Pro: Goldman names global stocks with the highest sustainable dividends, giving one 10% yield
European companies are more cash-rich than they’ve been in recent history.
Companies in the Stoxx 600 index have nearly 1.5 trillion euros ($1.6 trillion) in cash on their balance sheets — that’s 25% higher than pre-pandemic levels, according to Goldman Sachs.
And the dividend yield differential between Europe and the U.S. is the narrowest it’s ever been, making Europe more appealing, according to Goldman Sachs. “In other words, Europe has rarely looked cheaper on an absolute and relative basis,” it said.
CNBC Pro takes a look at some stocks that turned up on Goldman’s screen of high dividend yield names. They are companies in the Stoxx Europe 600 with the highest 12-month forward dividend yields in each sector.
Subscribers can read more here.
— Weizhen Tan
12 Hours Ago
Stocks surged on Thursday ahead of the April jobs report
Traders work on the floor of the New York Stock Exchange.
NYSE
The major averages posted gains on Thursday, with the S&P 500 jumping 0.91% to close at 5,064.20. The Nasdaq Composite surged 1.51% to end at 15,840.96, and the Dow Jones Industrial Average climbed 322.37 points, or 0.85%, to close at 38,225.66.
It was the first positive day in three for the S&P 500 and the Nasdaq.
— Darla Mercado
13 Hours Ago
India ETF trading at all-time highs
The iShares MSCI India ETF (INDA) hit an intraday all-time high again on Thursday as the rally for stocks tied to the country continues.
Morgan Stanley strategist Ridham Desai said in a note to clients Thursday that the India bull market could continue for several more years.
“This is set to be India’s longest and best bull market ever,” Desai’s note said.
Read more about the iShares fund and the market outlook for India on CNBC Pro.
— Jesse Pound
13 Hours Ago
First-quarter earnings season scorecard
The first-quarter earnings season is nearing its end. As of Thursday morning, three-quarters of the S&P 500, or 373 companies, have reported results.
So far, 77% of companies have topped earnings expectations, while 61% have surpassed revenue estimates, according to LSEG data. Based on the blended growth rate, companies are on pace to report 6.9% earnings growth year over year and 3.6% revenue growth.
Communications technology is expected to see the most significant quarterly earnings growth at nearly 44% year over year. Earnings for the health-care and energy sectors are expected to decline more than 24% each from a year ago.
— Samantha Subin, Robert Hum
Credit: Source link
