Asia markets track Wall Street gains; China holds loan prime rates

Asia markets track Wall Street gains; China holds loan prime rates

6 Mins Ago

China leaves loan prime rates unchanged

China’s central bank governor said there was room to further cut banks’ reserve requirements, and pledged to utilize monetary policy to prop up consumer prices.

Bloomberg | Bloomberg | Getty Images

China’s central bank left its one- and five-year loan prime rates unchanged at 3.45% and 3.95%, respectively.

The one-year LPR is seen as the peg for most household and corporate loans, while the five-year rate is the benchmark for most property mortgages.

The decision was in line with a Reuters poll that expected both rates to stay unchanged.

China on Friday announced measures to boost its debt-laden property market. 

— Shreyashi Sanyal

Fri, May 17 2024 4:06 PM EDT

Dow closes at a record high above 40,000

Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2024 in New York City. 

Angela Weiss | AFP | Getty Images

The Dow Jones Industrial Average rose to another record close on Friday afternoon.

The 30-stock index rose 134.21 points, or 0.34%, to settle at 40,003.59. The benchmark had first crossed over the 40,000 mark for the first time on Thursday morning.

The S&P 500 also added 0.12% to close at 5,303.27. On the other hand, the Nasdaq Composite shed 0.07%, finishing at 16,685.97.

— Lisa Kailai Han

Fri, May 17 2024 2:26 PM EDT

The Fed will cut rates this year upon a ‘return of disinflation,’ UBS says

Softer economic data in recent weeks bolsters the argument that investors may finally receive some much-anticipated rate cuts in 2024, UBS argued in a Friday note.

“We continue to believe recent economic data underpin our view that a return of disinflation should allow the Fed to start easing policy later this year,” the bank wrote.

UBS added that price pressures have also been easing in recent months in categories such as shelter, which should help bring down overall inflation.

— Lisa Kailai Han

Fri, May 17 2024 12:59 PM EDT

Stocks will experience near-term choppiness followed by a late-year rally, Wells Fargo says

Stocks have rallied to record highs recently, but Wells Fargo is expecting this trend to turn on its head.

Analyst Christopher Harvey pointed out that the “bad news = good news” narrative has pushed the major stock indexes to new records. However, he believes the market is unlikely to continue pushing higher consistently, at least for now.

“Expect near-term choppiness with a late-year rally toward our SPX 5535 target,” he wrote.

Harvey’s year-end S&P 500 target represents a 4.5% move upward for the benchmark.

— Lisa Kailai Han

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