Hong Kong stocks lead losses; Fed, BOJ meeting this week

China’s central bank lowered the 14-day inverse rate

The People’s Bank of China announced on its website that borrowing costs for 14-day reverse repurchase agreements have dropped.

The central bank said it injected 2 billion yuan ($285 million) in 14-day operations, versus 7 days and 10 billion yuan. The 7-day rate remains unchanged.

– Abigail of

Shares in Cathay Pacific rose on reports that Hong Kong may end hotel quarantine.

Oil prices rose as China’s lifting of Covid-19 lockdown boosted demand outlook.

Fuel prices rose on Monday after China’s mega-city, Chengdu, was locked down for two weeks.

Both oil benchmarks each rose more than 1% earlier in the session, and Brent crude futures added 0.66% to $91.95 a barrel. US West Texas Intermediate gained 0.56% to $85.59 a barrel.

A rising demand outlook will offset concerns that a possible rate hike later this week will increase downside risks.

– Lee Ying Shan

CNBC Pro: This ETF carries risk — but does best when volatility increases.

As volatility recedes again, investors looking for a short-term trade can choose this ETF as it outperforms during periods of extreme market activity.

“I believe the fund is attractive because it’s the prospect of very quick, high returns when other people in the market seem to be losing their shirts,” said Daniel Martins, principal researcher and portfolio strategist at DM Martins Research.

However, despite the potential for high returns, ETFs carry significant risk, and are not for every investor.

Pro subscribers can read more here.

– Xavier Ong

China’s yuan has room to weaken further in the near term, says Goldman Sachs

There is still room for China’s yuan to weaken further, Goldman Sachs economists said after the onshore and offshore yuan fell to its lowest level since July 2020 last week.

“We expect CNY weakness to continue in the near term,” the strategists said in their note, adding that the next key level is 7.20, which was finally tested in May 2020.

However, such a move is accompanied by a strengthening of the US dollar, “sizzling”, he said in the note, “CNY is unlikely to weaken by 3% independently.”

– Jihye Lee

CNBC Pro: Buy These Inflation Funds to Protect Your Money, Says Strategist

With inflation rising sharply and US stocks and bonds volatile, where can investors hide?

According to Marc Jolly, global strategist at CCB International Securities, there are three types of funds that look attractive right now. He named his favorites in each category.

CNBC Pro subscribers can read more here.

– Weizen Tan

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