Tue, December 12, 2023, 8:16 p.m. EST
Argentina devalues its currency by more than half and cuts subsidies
Argentina has sharply devalued its currency and cut energy and transportation subsidies. This is part of economic shock measures that new Economy Minister Luis Caputo said were aimed at tackling the country's worst crisis in decades.
The peso weakened by about 56% to 800 pesos per dollar from 366.5 before the measure took effect. The Argentine blue dollar – which refers to cash dollars bought and sold informally – traded at 1,050 per dollar.
Caputo said the plan is necessary to reduce the budget deficit and reduce triple-digit inflation.
Argentina's annual inflation rate was 143% in October. The country is also struggling with a budget deficit and $45 billion in debt to the International Monetary Fund.
—Associated Press
Tue, December 12, 2023, 7:39 p.m. EST
The business climate in Japan improved more than expected in the fourth quarter
Business sentiment in Japan among major manufacturers has improved more than expected, according to the Bank of Japan's quarterly Tankan survey.
The Tankan reading for major Japanese manufacturers rose to +12 from +10, beating the +10 estimated by economists in a Reuters poll.
Meanwhile, numbers for large non-manufacturing companies rose from +27 to +30, improving for the seventh consecutive day and also exceeding the +27 expected in the Reuters poll.
A positive index value means that the number of optimistic respondents is greater than that of pessimistic respondents.
—Lim Hui Jie
Tue, December 12, 2023, 7:35 p.m. EST
South Korea's unemployment rate rises to its highest level in five months in November
A shoeshine street stall in Gangnam, Seoul, as South Korea's central bank appeared to be among the first in the region to cut its key interest rate.
Anthony Wallace | Afp | Getty Images
South Korea's unemployment rate has risen to its highest level since July, according to government data.
South Korea's unemployment rate rose to a seasonally adjusted 2.8% last month, up from 2.5% in October.
The data also showed the country's economy added about 277,000 fewer jobs in November, compared to 346,000 jobs added the previous month.
South Korea's unemployment rate hit a record low of 2.4% in August.
—Shreyashi Sanyal
Tue, December 12, 2023, 7:21 p.m. EST
CNBC Pro: Morgan Stanley says to 'buy' these global growth stocks through year-end
Morgan Stanley has advised clients to stay ahead of the next market cycle by buying stocks in high-quality growth companies in Asia and emerging markets (EM).
“We believe the market is now transitioning to a new cycle that would favor growth over value,” the Wall Street bank's strategists, including Gilbert Wong, said in a Dec. 11 note to clients. “Our proposed strategy is to buy the decline in quality growth stocks [Asia Pacific region excluding Japan, and EM].”
CNBC Pro subscribers can read more about Morgan Stanley's stock picks here.
– Ganesh Rao
Tue, December 12, 2023, 7:02 p.m. EST
India: Consumer prices in November rose at their fastest pace in three months
Customers browse goods in a store on the outskirts of New Delhi, India, in February, as prices continue to rise and March inflation numbers are near 7%.
Anindito Mukherjee/Bloomberg via Getty Images | Bloomberg | Bloomberg | Getty Images
Consumer prices in India rose at their fastest pace in three months in November due to rising food prices, according to government data released on Tuesday.
Annual retail inflation rose to 5.55% in November, still below the Reuters survey forecast of 5.7%. The figure was above the 4.87% increase in October.
Food prices, which account for more than half of consumer prices, rose 8.7% last month from 6.61% in October.
The inflation rate is still above the Reserve Bank of India's annual target of 4%.
The RBI kept its main repo rate stable at 6.5% at its final monetary policy meeting of the year last Friday and said it expects the country to grow by 7% in 2023.
—Shreyashi Sanyal
Tue, December 12, 2023, 7:21 p.m. EST
CNBC Pro: “Big and very profitable”: Analysts like this biotech stock and give it big upside potential
The biotech sector has finally picked up steam after a difficult 2022 – and one under-the-radar stock is catching the eye of fund manager Hugh Dive.
Dive, chief investment officer at Australia-headquartered Atlas Asset Management, calls it a “very well-run, large and very profitable company” and disagrees with the stock.
CNBC Pro subscribers can read more here.
—Amala Balakrishner
Tue, December 12, 2023, 8:40 a.m. EST
CPI rises 0.1% month-on-month in November
The consumer price index rose 0.1% in November compared to the previous month. Economists polled by Dow Jones expected the CPI to remain flat month-to-month. Year-on-year pressure was 3.1%, in line with expectations.
Excluding energy and food, CPI rose 0.3% month-on-month and 4% year-on-year – also in line with expectations.
—Fred Imbert
Tue, December 12, 2023, 7:43 am EST
According to a CNBC poll, the Federal Reserve will begin cutting interest rates in mid-2024
Respondents to the latest CNBC Fed survey expect the central bank to begin cutting interest rates by the middle of next year and are more optimistic about the likelihood of a soft landing.
More than half of the 35 economists, strategists and analysts surveyed by CNBC expect June to be the first month of Fed rate cuts, while 69% expect another rate cut in July. The average forecast from respondents is for about 85 basis points of rate cuts in 2024.
Meanwhile, expectations of a soft landing also increased in the December survey compared to the previous month. Respondents increased the probability of a soft landing to 47%, up one basis point from November, while they reduced the probability of a recession in 2024 by 8 basis points to 41%.
—Brian Evans
Tue, December 12, 2023, 11:33 a.m. EST
Major indices hit new 52-week intraday highs
The three major indexes all hit new 52-week intraday highs during Tuesday's trading session.
The Nasdaq Composite rose to 14,474.02, its highest intraday reading since April 5, 2022, when it hit 14,500.29.
The S&P 500 reached 4,630.49, its highest intraday level since March 29, 2022. At the last intraday high, the S&P 500 reached 4,637.30.
The 30-stock Dow Jones Industrial Average hit a high of 36,531.97, its highest intraday reading since Jan. 5, 2022, when it traded at 36,952.65.
– Hakyung Kim
Tue, December 12, 2023, 10:24 am EST
US Crude Oil Falls 3% on Inflation Concerns
U.S. crude oil prices fell more than 3% on Tuesday as traders fear the Federal Reserve does not yet have inflation under control.
The January West Texas Intermediate contract lost $2.41, or 3.38%, to trade at $68.91 a barrel, while the February Brent crude oil contract lost $2.33, or 3.06%, to trade at 73, Traded at $70 per barrel.
U.S. inflation rose 0.1% in November after remaining flat in October. Traders are concerned that the Fed is out of control of inflation and needs to keep its foot on the accelerator on interest rates, said Phil Flynn, analyst at Price Futures Group.
Flynn said oil market confidence was shaken after a seven-week losing streak.
Record-breaking U.S. oil production is colliding with a faltering economy in China, raising concerns that OPEC+ will be unable to stabilize crude oil prices with its new round of cuts for the first quarter.
–Spencer Kimball
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