An Hour Ago
Europe markets: Opening calls
11 Hours Ago
Odds of more Fed rate hikes in 2H fade after June inflation report
The odds that the Federal Reserve will raise rates again, after its next meeting on July 26, have faded on the back of Wednesday’s weaker-than-expected consumer price report for June.
According to the CME FedWatch tool, interest rate traders still see a 95% certainty that the central bank lifts its benchmark fed funds rates a quarter point, to 5.25%-5.50%, on July 26. But after that, things get dicey.
The chance that the Fed will go another quarter point at its September meeting (it skips August), has fallen to 13.3%, down from 22.3% on Tuesday and 18.1% a week ago. Odds that fed funds will stand a half point higher by the end of the Fed’s Nov. 1 meeting are now 26.5% compared with 36.2% yesterday and 31.6% one week ago.
By the time of the Fed’s last policy meeting of the year, on Dec. 13, odds that rates will be a half point higher than today’s 5.00%-5.25%, have slumped to 20.8% now from 32.4% on Tuesday and 28% one week back.
Meanwhile, the odds that the Fed will have reversed this month’s rate increase by yearend have risen to 14.9% from 10.2% yesterday and 12.6% last week.
— Scott Schnipper
5 Hours Ago
CNBC Pro: Tesla’s push into humanoid robots is set to benefit these 5 global stocks in the supply chain, HSBC says
HSBC identified key stocks in the supply chain that may benefit from Tesla’s push into humanoid robots.
Tesla launched its human-shaped robot, called “Tesla Bot,” last September. The company claims it will eventually be capable of “performing unsafe, repetitive or boring tasks.”
In May, the company showed off a significantly improved version. It highlighted progress in walking posture, control of joint actuators, environmental sensing capabilities, and artificial intelligence training.
The bank identified the companies behind key components for humanoid robots, such as machine vision systems, control systems and servo motors.
CNBC Pro subscribers can read more here.
— Ganesh Rao
5 Hours Ago
CNBC Pro: UBS upgrades big pharma stock after shares drop on poor drug results
UBS has upgraded a big pharma stock to a buy rating after the drug maker’s trial of a lung cancer medication delivered poor results.
The Swiss bank believes investors should overlook the results of the trial as the pharmaceutical giant’s 30-drug-trial pipeline makes it a “leading player in this field” and expects shares to rise by nearly 30% in a year.
CNBC Pro subscribers can read more here.
— Ganesh Rao
5 Hours Ago
South Korea holds rates at 3.5%, in line with expectations
South Korea’s central bank held its benchmark interest rate unchanged at 3.5%, the fourth straight meeting the Bank of Korea has done so after last hiking rates in January.
The bank wrote that although the country’s inflation rate continues to slow down, it is expected to rise above the BOK’s target level of 2% “for a considerable period of time.”
The BOK also forecasts that inflation will rise to around 3% after August, and added the need for an additional hike will be judged “while assessing the changes in domestic and external policy conditions.”
South Korea’s inflation rate came in at 2.7% for June, and is at its lowest level since September 2021.
— Lim Hui Jie
18 Hours Ago
CPI rises less than expected in June
The consumer price index rose 0.2% in June and 3% from a year ago, the Labor Department said Wednesday. Economists polled by Dow Jones had expected a monthly increase of 0.3% and 3.1% on an annualized basis.
Core CPI, which excludes volatile food and energy prices, also increased less than anticipated.
— Samantha Subin
