36 minutes ago
The Japanese yen rebounds 4.5% against the US dollar, its best week in a year
The Japanese yen was trading at 152.93 yen against the US dollar and was on track to end its best week in more than a year, despite hitting 160.03 yen on Monday, its lowest since 1990.
Analysts, including BofA, have suggested that the intervention by Japanese authorities likely occurred twice, on Monday and Wednesday. Authorities have not yet issued an official statement confirming the intervention.
Nicholas Smith, Japan strategist at CLSA, told CNBC: “The government has refused to say publicly whether there will be any intervention, but I don’t think many people have doubts about it.”
The yen has recovered about 4.5% since hitting a 34-year low on Monday.
1 hour ago
A weaker yen is not completely unwelcome, says HSBC.
HSBC said in a note to clients that the weaker yen is playing a key role in “reflation” of Japan’s economy, a goal the Bank of Japan expects to achieve this year.
“After years of losing competitiveness, exporters are finally feeling the benefits of exchange rate readjustment. And it takes an even longer period of exchange rate depreciation to turn this appreciation into a lasting manufacturing renaissance.” “Some may wonder if this will be necessary,” said Frederick Newman, HSBC’s chief Asia economist.
Newman said the weaker yen is boosting Japan’s services sector through tourism, which in turn is boosting inflation expectations.
“In other words, a weaker yen is not entirely unwelcome as long as the weaker yen is orderly. So don’t expect the Bank of Japan to rush into aggressive tightening just because the exchange rate is unstable.” Newman added.
— Shreyashi Sanyal
7 hours ago
CNBC Pro: Goldman says these global stocks will soar on $857.5 billion electrification boom, with room for 45% upside
Demand for power and data centers is sweeping the world, and US tech giants aren’t the only ones benefiting, according to Goldman Sachs.
Demand is expected to recover in Europe over the next decade, with electricity consumption expected to increase by up to 50%, reversing the recession faced since 2008, analysts at the investment bank said.
This strong growth equates to nearly 800 euros ($857.5 billion) of investment in Europe’s electricity transmission and distribution networks, it added, putting stocks on its radar with potential for gains of more than 30%.
CNBC Pro subscribers can read more here.
— Amara Balakrishna
7 hours ago
CNBC Pro: Goldman names global stocks with highest sustainable dividends at 10% yield
European companies are more cash-rich than in recent history.
Companies in the Stoxx 600 index have nearly 1.5 trillion euros ($1.6 trillion) in cash on their balance sheets, a 25% increase from pre-pandemic levels, according to Goldman Sachs. ing.
Additionally, Goldman Sachs says the difference in dividend yields between Europe and the United States is at an all-time low, making Europe even more attractive. “In other words, Europe rarely looks cheap on absolute and relative standards,” the paper said.
CNBC Pro highlights some of the stocks selected for Goldman’s High Dividend Yield Stock Screen. These are the companies in the Stoxx Europe 600, which have the highest 12-month forward dividend yields in their respective sectors.
Subscribers can read more here.
— Tan Weizhen
8 hours ago
Apple, Expedia and Amgen are among the biggest movers in after-hours trading.
Let’s check out the companies that are becoming a hot topic for after-hours trading.
- Apple — The iPhone maker rose 7% after announcing a $110 billion share buyback and significant improvements in sales and bottom line profits. Apple’s fiscal second quarter earnings were $1.53 per share on revenue of $90.75 billion. This beat analysts’ expectations for LSEG’s earnings of $1.50 per share and sales of $90.01 billion.
- Expedia — The online travel company was down about 8% in after-hours trading. Expedia lowered its full-year outlook to a mid-to-high single-digit sales growth range, citing the slowdown in Vrbo and the acceleration in business-to-consumer sales to date. Expedia posted first-quarter revenue of $2.89 billion, beating analysts’ expectations for $2.81 billion, according to LSEG.
- Amgen — The biotech company soared 11%. Amgen posted adjusted earnings per share of $3.96 on revenue of $7.45 billion in the first quarter. Analyst estimates compiled by LSEG were for earnings of $3.87 per share and revenue of $7.44 billion. The company also said it would move an injectable obesity drug into Phase 3 trials but would no longer pursue an experimental weight loss drug in development.
Read here for the complete list.
— Peer Singh
9 hours ago
