Daily Stock Market Reports

Asia-Pacific markets open higher after Wall Street rebounds overnight


China’s central bank warns against yuan bets

The People’s Bank of China has warned against betting on the yuan in either direction, after its rapid decline against the U.S. dollar this week.

“Do not bet on a one-sided appreciation or deprecation of the renminbi exchange rate,” the central bank said in a Chinese statement on its website late Wednesday, according to a CNBC translation.

That’s based on a readout of a speech by vice governor Liu Guoqiang at a video conference meeting on foreign exchange that day.

— Evelyn Cheng

Two of Hong Kong’s largest IPOs for 2022 to debut on the stock market

China Vanke’s subsidiary Onewo and EV maker Zhejiang Leapmotor Technology are set to start trading on the Hong Kong market.

Both companies have each raised more than $700 million in initial public offerings that were undersubscribed by retail investors.

Reuters reported that Onewo and Leapmotor’s shares fell in grey market trading on Wednesday.

— Abigail Ng

Stocks may continue this ‘oversold bounce’ over the next few days, Wells Fargo’s Harvey says

Wells Fargo’s Chris Harvey expects stocks to continue their upward move.

“The spike in short interest, retail selling skew, and BOE’s action all suggest stocks will continue their oversold bounce for the next few days,” he said in a note to clients Wednesday.

Stocks hit fresh lows earlier in the week, with the S&P 500 notching a new bear market. The sell-off was triggered by the Fed’s latest rate decision last week, which some investors believe steered the market into oversold conditions.

As the cost of capital rises and prices hover near record highs, the consensus is increasingly coming to believe that a Fed-induced recession is unavoidable, Harvey said.

“We look at a recession like a car crash,” he wrote. “You never know how bad it will be, but there is almost no ‘better-than-expected’ outcome — so policymakers need to be careful what they wish for.”

— Samantha Subin

10-year Treasury yield drops the most since 2020

The yield on the benchmark 10-year Treasury note dropped the most since 2020 on Wednesday, despite briefly topping 4% earlier in the session, after the Bank of England announced a bond-buying plan to stabilize the British pound.

The 10-year Treasury yield last dropped 23 basis points to 3.733%, or the most it’s dropped since 2020.

It hit a high of about 4.019%, a key level that was the highest since October 2008, earlier in the day before erasing those gains.

Yields and prices move in opposite directions. One basis point is equal to 0.01%.



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