Short selling ban in South Korea, US jobs data lifts sentiment

Short selling ban in South Korea, US jobs data lifts sentiment

one hour ago

South Korean stocks rise after temporary ban on short selling

South Korean stocks jumped after financial authorities said they would reimpose a ban on short selling until the end of June 2024. Short selling is when a trader sells borrowed shares to buy them back at a lower price and pockets the difference.

The ban will restrict short selling of all listed shares of Kospi, Kosdaq and Konex. Restrictions were lifted in May 2021 on trades involving shares of large-cap companies, most of which are included in the KOSPI index.

“We seek a radical solution to the issue of ‘skewed competition’ between organizations and individuals,” Kim Joo-hyun, chairman of the Financial Services Commission, said in a press release.

The KOSPI jumped 3.93%, while the KOSDAC rose 5.88%.

This comes after a report in mid-October said that South Korea’s securities market watchdog found that two Hong Kong-based investment banks had engaged in short selling, which was expected to result in record fines. Naked short selling is when an investor sells stocks or other securities without borrowing first.

– Shreyashi Sanyal

3 hours ago

Business activity in Japan in October grows at the slowest pace this year

Business activity in Japan expanded in October but at a slower pace this year, according to a private survey.

The Jibbon Bank final composite PMI stood at 50.5 in October, marking the tenth consecutive monthly increase in private sector business activity but fell from 52.1 in September.

Japan’s flagship Jibun Bank’s service business activity index expanded for the 14th straight month in October, reaching 51.6 but falling from 53.8 in September.

Both readings point to the weakest expansion yet in 2023.

The survey said there were further signs of slowing expansion amid softening demand conditions, while business confidence also declined in October.

– Shreyashi Sanyal

4 hours ago

CNBC Pro: The growth investor doesn’t care about the Seven Wonders, but he loves one of the tech giants

The “magnificent seven” stocks — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — have proven popular this year, but one growth investor says he’s underweight the group.

“The Magnificent has done well and is poised to continue to do well because they have castle-like balance sheets and they are very profitable. They have used the last couple of years post-Covid to become more efficient, but they also have tremendous potential,” Jonathan Curtis told CNBC on Friday. Future opportunities in artificial intelligence.

However, he said investors need to be “more curious and more cautious” about tech giants – and revealed his favorite has “huge growth potential”.

CNBC Pro subscribers can read more here.

– Amala Balakrishner

4 hours ago

CNBC Pro: Citi is bullish on one part of the semiconductor industry. Here are our top stock picks

The improvement in one corner of the semiconductor industry began in the second half of this year, according to Citigroup.

The jump in monthly semiconductor sales for September exceeded Citi estimates. The bank said it rose 13% month-on-month to $49.6 billion, higher than the bank’s estimate of $46.9 billion.

CNBC takes a look at five of its top stock picks.

Subscribers can read more here.

-Weezin Tan

Friday, November 3, 2023 at 8:36 AM EST

US jobs grew at a slower pace than expected in October

The Labor Department said on Friday that the US economy added 150,000 jobs in October. This is slightly below the Dow Jones forecast of 170,000.

Average hourly earnings, a data point closely watched in the report for inflation trends, rose 0.2% last month. This is also a smaller increase than expected. Meanwhile, the unemployment rate rose to 3.9% versus expectations of 3.8%.

-Fred Imbert

Friday, November 3, 2023 at 11:17 AM EST

Goldman Sachs’s chief economist says the jobs data reaffirms expectations that the Fed is done raising interest rates

Jan Hatzius, chief economist at Goldman Sachs, said Friday’s below-expected jobs report strengthens the argument that the Fed is done raising interest rates.

“I thought it was generally weaker than we expected,” Hatzius said of CNBC’s “Squawk on the Street” report. But “I don’t think he was vulnerable in a way that was very concerning.”

Hatzius said the publication supports the argument of those who expect the central bank to be done raising interest rates in the current monetary policy cycle after its meeting earlier in the week. While he said Goldman does not expect the Fed to cut interest rates until the fourth quarter of next year, he said the central bank could start lowering them if the economy weakens more sharply before then.

“It was a softer report that I think highlights the message that the market came out of this week’s FOMC meeting — namely that the Fed is very likely to have raised interest rates,” he said.

-Alex Haring

Friday, November 3, 2023 at 1:47 PM EST

Long-term Treasury ETFs continue to rise in November

The iShares 20+ Year Treasure Bond ETF (TLT) is on track for a third straight positive day as Treasury yields decline.

TLT rose 1.2% in afternoon trading, meaning the fund is already up more than 5% in November, which began with the Fed’s meeting on Wednesday.

TLT saw inflows and heavy trading activity in October, as some investors appeared to be betting on a rebound in the fund after yields rose above 5%.

-Jesse Pound

    (Tags for translation) Shenzhen Component Index 

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