Oil prices are down on hopes that China will reopen
Oil prices fell slightly as China continues to see an increase in Covid cases as well as a strain on medical resources dampening hopes for the country’s reopening and the outlook for oil demand.
Brent crude futures was down 0.46% to $82.88 a barrel. The same is true of USA West Texas Intermediate It was down 0.49% to $78.58 a barrel.
“Even China’s reopening narrative could be disrupted by China’s record Covid cases,” Mizuho Bank’s Vishnu Varathan wrote in a note, adding that the reopening was not should be mistaken for “permanent insecurity” against the dangers of global warming.
— Lee Ying Shan
Apple’s suppliers in Asia fell after the distribution from the low-tech giant’s record
Italy to introduce Covid tests for travelers from China: Reuters
Italy will require all passengers arriving from China to undergo a Covid test, its health minister said, Reuters reported, after authorities in Milan said nearly 50% of passengers on two flights from China has faced a good test.
The measures to be taken against those who come and test positive have not been determined, according to Reuters.
Separately, the UK is considering following suit after the US announced mandatory testing of arrivals from China, the Telegraph reported.
— Lee Ying Shan
CNBC Pro: Tech is ‘down but not worth it’ – watch these stocks in 2023, money managers say
It’s been a bad year for tech companies, and many investors are wondering when tech stocks will take off.
Jeremy Gleeson, director of technology funds from AXA Investment Managers told CNBC Pro Talks last week that he still believes in the sector.
He explains why and names the stocks to buy.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Crypto exchange Kraken to close Japanese operations
Digital currency exchange Kraken has announced that it will cease operations in Japan next month, and will cancel its registration with Japan’s Financial Services Agency on January 31, 2023.
The exchange cited a combination of “current market conditions in Japan” and a “weak global crypto market” as reasons behind the move.
The decision is part of Kraken’s efforts to “prioritize resources and investments in areas that align with [its] strategy and will best position Kraken for long-term success.”
Bitcoin has fallen 0.64% in the last 24 hours and last traded at $16,571.12, according to Coin Metrics. Ether is down 1.18% to $1,193.34.
— Ryan Browne, Lee Ying Shan
US requires negative Covid test from travelers to China
Airline passengers entering the United States from China will need to test negative for Covid, a federal health official said on Wednesday.
The rules take effect on January 5 and apply to all travelers who are at least two years old from China, Hong Kong and Macau. The rules apply regardless of nationality or vaccination status.
After experimenting with a zero Covid policy for longer than any other major country, China is now seeing a wave of infections after reinstating public health restrictions in recent weeks.
— Jesse Pound
Apple breaks key technical levels, sets new 52-week low
apple fell to the key $129 level and set a new 52-week low for the second day Wednesday.
Some analysts view Apple, the largest stock in the stock market, as a catalyst for the overall market and has a significant impact on investor sentiment.
“It doesn’t bode well for the market as a whole,” said Todd Sohn, a technical analyst at Strategas. “The end of the year is a funny time, but if it continues in the first two weeks of the year, it’s real.”
Apple fell to $129 support in early trading on Wednesday and touched a low of $126.41 before rebounding. changed to -127.15 US dollars.
“If your main weight is weak and you make a new low, that’s not good. Your top player is not lethal,” he said. Sohn said the five biggest names in the market share are still declining. “The silver lining is the impact on the S&P 500 index.”
–Patti Domm
CNBC Pro: China eases Covid restrictions. This may indicate a buying opportunity in these stocks
The reopening of the world’s second-largest economy could give investors a chance to buy as China lifts most of its Covid restrictions.
Investors have taken the recent development as a signal to start supplying the Chinese market. They expect that China’s economy may improve in 2023, while the United States and Europe continue to face the effects of financial pressures that may reduce economic growth.
“Many institutional investors are very underweight Chinese equities,” said Carlos Asilis, co-founder and CIO of Glovista Investments.
“And I think that’s a mistake, because it ignores this very important fundamental issue that has value right now, which is the Chinese economy next year on the same recovery path that we saw in this year in the case of the United States,” he added.
CNBC Pro subscribers can read the full story here.
— Sarah Min
