Live updates, BOJ meeting minutes, Japanese CPI

Malaysia’s inflation rate fell to 1.5% in November, down from 1.8% in October, reaching its lowest level since February 2021.

The November reading was also below the 1.7% expected by economists in a Reuters poll. On a monthly basis, inflation remained flat in November, compared to a 0.1% rise in the previous month.

The Malaysian Department of Statistics said The lower inflation rate was driven by lower prices in areas including restaurants and hotels, as well as food and non-alcoholic beverages.

– Lim Hui Ji

Oil prices rebounded on Friday, a day after Angola announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC), sending prices lower.

Brent crude futures for January rose 0.83 to trade at $80.05 a barrel, while West Texas Intermediate crude rose 0.88% to $74.54.

Angola announced Thursday OPEC will leave, as the country’s oil minister said the bloc no longer serves the country’s interests. According to a report by Reuters.

– Lim Hui Ji

Bank of Japan board members discussed how to communicate the shift in the central bank’s yield curve control policy in October. The minutes of the meeting were revealed.

The Bank of Japan revised its yield curve control policy in October, saying the target level for the 10-year Japanese government bond yield would remain at 0%, but would take the upper bound of 1% as a “reference” rather than a strict cap.

Some members felt that despite this move, it was necessary to emphasize that the Bank of Japan still intends to continue monetary easing with the YCC.

One member also said that the bank should make clear that this action was not intended to prepare for the discontinuation of the YCC and its negative interest rate policy.

Another BOJ board member noted that in order to avoid unnecessary market speculation, the bank must clearly state that its policy decisions are based on expectations of economic activity and prices.

“This is to avoid encouraging speculative transactions, by giving the impression that the Bank of Japan was forced to make policy decisions to follow fluctuations in market prices,” the member said, according to the minutes.

– Lim Hui Ji

Japan Inflation The interest rate slowed to 2.8% in November – its lowest level since July 2022 – from 3.3% in October.

Core inflation in November, which excludes fresh food prices, slowed to 2.5% from 2.9%, in line with expectations of economists polled by Reuters.

What’s called “Core” inflation.The inflation rate, which excludes fresh food and energy prices, was 3.8%, down from 4% in October. This is the main measure that the Bank of Japan takes into account in monetary policy decisions.

Interest rates appear to have peaked, and growth stocks are an area worth looking at now, according to Goldman Sachs.

“While interest rates appear to have peaked, pure growth…provides duration exposure, while stable farmers…are more defensive,” the investment bank wrote in a note in December.

Last week, the US Federal Reserve indicated that there would be three cuts coming in 2024, ending a cycle of 11 hikes. Raising interest rates has not usually been good for growth stocks.

Goldman Sachs did two equity screens for the so-called pure growth and stable grower categories.

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-Weezin Tan

Wall Street will see if the “Santa Claus rally” — which refers to the typical gains of the last five trading days of the year and the first two days of the new year — materializes this holiday season. This year, the season begins on Friday and continues until January 3.

Since 1969, the S&P 500 has risen on average 1.3% during this period, according to Jeff Hirsch, editor of Stock Trader’s Almanac. But the editor noted that the Santa Claus Rally’s failure to materialize has historically been a harbinger of poor stock performance.

“Failure to regulate a Santa Claus rally tends to precede bear markets or times when stocks can be bought at lower prices later in the year,” Hirsch wrote in an article. Blog post. “Low SCR levels were followed by flat years in 1994, 2005 and 2015, two bad bear markets in 2000 and 2008 and a moderate decline that ended in February 2016.”

“As Yale Hirsch’s now famous phrase goes, if Santa Claus fails to call, the bears may come to Broad and Wall,” Hirsch added.

Yale Hirsch, who coined the term, was the founder of the Stock Traders Almanac.

– Sarah Maine

The S&P 500 is poised for another week of gains, extending its winning streak to levels not seen in nearly six years.

The overall index rose 0.3% this week, putting it on track for its eighth consecutive positive week.

This would mark the longest weekly winning streak since 2017. During that year, the index rose for eight consecutive weeks between September and November.

This rise has helped the index rise near its all-time highs, which investors are closely watching.

The third reading of real GDP was lower than expected.

Real GDP rose at an annual rate of 4.9% in the third quarter, according to the Federal Reserve’s third estimate Bureau of Economic Analysis. That’s less than the second estimate’s 5.2% increase, and less than the 5.1% rise expected by economists polled by Dow Jones.

In the second quarter, real GDP increased by 2.1%.

– Sarah Maine