Bank of Japan members prefer to raise interest rates if economic and price growth goals are achieved, minutes of the meeting showed
The Bank of Japan on Wednesday released minutes from its September monetary policy meeting, which showed members largely agreed to raise interest rates if economic growth and price growth are as expected.
The bank expects the economy to continue growing at a pace above its potential growth rate, and has set an inflation target of 2%.
At the end of the monetary policy meeting in September, the Bank of Japan kept interest rates steady at 0.25%.
Members said Japan's economic developments are broadly in line with July 2024 forecasts, with continued wage increases and consumption growth.
-Dylan Potts
Thursday, May 2, 20247:32 PM EST
CNBC Pro: Goldman Sachs says these global stocks will rise thanks to an $857.5 billion electrification boom – giving a 45% upside
Demand for power and data centers has taken the world by storm, and it's not just US tech giants that are set to benefit, according to Goldman Sachs.
Investment bank analysts indicated that Europe is expected to witness a rise in demand and electricity consumption by up to 50% in the next ten years, which reflects the recession it has been facing since 2008.
They added that the massive growth translates into an investment of nearly €800 ($857.5 billion) in Europe's energy transmission and distribution network, and they named stocks with upside potential of more than 30% on their radar.
CNBC Pro subscribers can read more here.
– Amala Balakrishner
CNBC Pro: These 2 Stocks Beat the S&P 500 in the November Election No Matter Who Won
Two stocks outperformed Standard & Poor's 500 Every November when elections have been held for the past three decades — regardless of the outcome, according to a CNBC Pro study.
CNBC Pro examined the stocks currently in the MSCI World Index that have risen by more than Standard & Poor's 500 — or lost less than the index — in November of every election year since 1988. The 36-year period saw four Republicans and five Democrats elected to the White House.
CNBC Pro subscribers can read more about the two stocks here.
– Ganesh Rao
Watching the dollar will be crucial Tuesday night, the strategist says
Investors should watch the dollar closely Tuesday night, according to David Zervos, chief market strategist at Jefferies.
“This will be the most liquid and most transparent message of what we are asking the markets to do, because this is where people can put money to work quickly. It will be difficult, of course, to put money into any sector, or credit. There he said on the “Money” program. “Movers” on CNBC on Tuesday morning: “There will be no liquidity for that in bonds.” “In times of stress, we turn to the dollar, at least temporarily, especially if it is global pressure and even if it is US-led pressure.”
Investors widely expect the US dollar to become stronger if Trump regains the presidency. Zervos added that many in the speculator community bet on the trade between the dollar and China as a profitable trade for Trump.
-Lisa Kailai Han
Investors should sell Trump's rise or buy Harris' decline, says Citi's Scott Kronert
Investors should sell the potential market rally if Trump wins the election, according to Citi's Scott Kronert.
“Your starting point is fairly stretched valuation conditions based on pursuing very strong earnings growth through 2025,” the bank's U.S. equity strategist told CNBC's “Squawk on the Street” on Tuesday. “What we're concerned about is that with this setup, you win over Trump and you bring tariffs into the discussion… (and) the 2025 growth outlook becomes a little more questionable as we deal with the tariffs.”
On the other hand, if Harris prevails, Kronert said investors should consider buying the expected dip in the market.
“It's really about Trump and the tariffs and Harris and the taxes,” he said.
— Sean Conlon
Goldman Sachs says the oil market could face volatility if Trump wins
A second Trump administration will likely lead to volatility in the oil market, according to Goldman Sachs.
The investment bank told clients in a note on Monday that Donald Trump may tighten sanctions on Iran, reduce supply from the Islamic Republic and put upward pressure on prices in the short term.
Oil prices rose by about 1% as voters in the United States headed to the polls. US crude oil It rose 35 cents, or 0.49%, to $71.82 a barrel by 8:56 a.m. ET. Global standard Brent Crude futures increased 33 cents, or 0.44%, to $75.41 per barrel.
“In theory, the impact of a potential second Trump term on oil prices is ambiguous,” Yulia Zhistkova Grigsby, vice president of commodities research at Goldman Sachs, told clients in a note on Monday.
However, in the medium term, a second Trump administration could increase trade tensions through tariffs, putting downward pressure on global oil demand and prices, according to Goldman Sachs.
-Spencer Kimball
Nomura Bank says shares may be sold off after the election
Strategists at Nomura Bank believe that stocks could see a wave of selling after the US presidential election, given the current situation among hedge funds and other major investors.
“The significant accumulation of long positions in US stocks by real money investors and macro hedge funds (among others) suggests that the market reaction to a red sweep could be an initial rally followed shortly thereafter by a bout of 'selling the truth,'” Nomura said in a note.
In reality, Standard & Poor's 500 Less than 3% from the record level recorded on October 17.
SPX year to date
Stocks rise on presidential election days, recent history shows
It's shaping up to be another Presidential Election Day winner for stocks.
the Dao, Standard & Poor's 500 and Nasdaq Composite They are all tracking gains on Tuesday. If this continues until the close of the session, it will mark the fifth positive presidential election day in a row for the Dow Jones.
Furthermore, 2024 will be the sixth consecutive Presidential Election Day for the S&P 500 and Nasdaq.
– Alex Haring, Peter Schackenau
