Prices shown at a New York grocery store on February 1, 2023.
Leonardo Munoz | Corbis News | Getty Images
This report is from today's CNBC Daily Open, the international markets newsletter. CNBC Daily Open keeps investors informed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Hong Kong stocks led the gains
Asian markets were largely higher on Wednesday, with Hong Kong's Hang Seng leading gains, while the CSI 300 in mainland China fell. Japan's Nikkei 225 index fell, but the Topix index rose. Overnight, US markets fell due to sharp declines in major technology stocks. the Dao Lost more than 400 points, while Standard & Poor's 500 It decreased by 1.02%. Heavy technology Nasdaq Decreased by 1.65% apple Shares fell nearly 3%. Bitcoin It also fell shortly after passing the peak for the first time in two years.
China drives growth
China may need to resort to an old tactic to achieve its ambitious growth target this year. Wang Dan, an economist at Hang Seng Bank (China), expects that “some kind of project similar to the Three Gorges Dam in size and quality will increase domestic demand” for Beijing to achieve its goal of achieving “about 5%.” “Growth in 2024.
UK pre-election budget
British Finance Minister Jeremy Hunt will announce a crucial budget before the election amid a technical recession. This is likely to be the last financial event before a difficult general election for the ruling Conservative Party.
Artificial intelligence adoption rate
A global survey found that the rate of AI adoption in businesses has yet to match the hype surrounding the technology. Data privacy, regulation and lack of IT infrastructure are among the main barriers to widespread use of AI, according to the report.
(PRO) Diversification of Artificial Intelligence Plays
Nvidia may have enjoyed a strong performance in AI, but fund managers highlight that it is still better to diversify and look for other alternatives. Veteran tech investor Paul Meeks told CNBC Pro that even if Nvidia is a “great story,” it's “too dangerous to be in just one” when it comes to AI.
Bottom line
Growth in the US services sector slowed somewhat in February.
The Institute for Supply Management's services activity index fell slightly to 52.6 from 53.4 in January. The fifty-point mark separates growth from contraction.
Despite the slowdown, the services sector expanded for the 14th straight month, accounting for about 75% of the economy. It has grown in 44 of the last 45 months.
Some details of the survey were more positive than the title.
Business activity rose in February, rising 1.4 points to 57.2, while the new orders index also rose to 56.1 from 55.0 in January.
“The slight decline in the growth rate in February is a result of faster supplier deliveries and a contraction in the employment index,” said Anthony Neves, chair of the ISM Services Business Survey Committee.
There were also encouraging signs on the inflation front as data reflected a marked decline in the expected pace of future price increases. The pricing index fell 5.4 points to 58.6, indicating that some inflationary pressures may be easing.
“The combination of weaker, but positive, growth in activity, coupled with gradual easing in the labor market and continued progress in wage and price inflation, will clearly be welcomed by markets and the Fed,” Pantheon Macroeconomics wrote in a note.
“But for now, these are projections, not clearly visible in the current hard data, so policymakers remain cautious.”
Investors expect the Fed to start cutting interest rates this year but the timing remains uncertain.
