Stocks fall, Chinese yuan crosses 7.2 against the dollar

The 10-year US Treasury yield exceeds 4% for the first time since 2010

CNBC Pro: Credit Suisse Says Now Is The Time To Buy Two Green Hydrogen Stocks, Giving One Over 200% Upside

Credit Suisse says it’s time to enter the green hydrogen sector, with a number of catalysts in place to boost the power of clean energy.

“Green hydrogen is a growth market – we increased our market estimates for 2030 by [over] 4x,” the bank said, forecasting green hydrogen production to expand around 40-fold by 2030.

Name two actions to play the boom, giving an advantage of more than 200%.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Chinese yuan at lowest since 2008, dollar index strengthens

The offshore and onshore Chinese yuan topped 7.2 against the dollar, hitting the weakest levels since early 2008.

The US dollar index also strengthened 0.33%, trading at 114.47.

Consumer inflation in Japan could ease in 2023: BOJ meeting minutes

Consumer inflation excluding fresh food is likely to rise this year, but the rate of increase will slow thereafter due to energy prices, according to July minutes from the Bank of Japan. meeting said.

Some members also said that inflation excluding fresh food and energy is unlikely to reach 2% within the projection period. That CPI reading was 1.6% in August.

“These members expressed the view that unless commodity prices continued to rise, the CPI inflation rate was expected to decline beginning in fiscal year 2023,” the minutes said.

Turning to the yen, a BOJ board member said downward pressure on the currency could ease if a slowdown in the global economy led to lower inflation and interest rates around the world.

Another member said the yen could even appreciate if the global economy faces shocks.

— Abigail from

CNBC Pro: Asset manager reveals what’s next for stocks and shares how he’s trading the market

CNBC Pro Talks: Asset manager Neil Veitch on the best options — and stocks to avoid — as volatility persists

Neil Veitch, chief investment officer at Edinburgh-based SVM Asset Management, says he expects the macroeconomic outlook to remain “pretty tough” for the rest of the year.

speaking to CNBC Professional Talks Last week, Veitch named the key drivers that could help the stock market become “more constructive” and shared his thoughts on growth versus value.

CNBC subscribers can read more here.

—Zavier Ong

Earnings questions, potential recession mean more sales could be ahead

The Dow Jones and S&P 500 have dropped for six days in a row, with many of them seeing broad selling typical of so-called “washout” days.

Sometimes that can be a contrarian buying signal on Wall Street, but many investment professionals are skeptical that the selling is over. One reason is that earnings expectations for next year still show strong growth, which would be unlikely in a recession.

“We know that if we start to see a turnaround in two-year yields … and if we start to see a turnaround in the dollar, that gives us the ability to recover from these extreme oversold conditions,” said Andrew Smith, director of investments. strategist at Delos Capital Advisors in Dallas. “But I’m having a hard time reconciling in my mind that the earnings story will be as good as we hope.”

Also, dramatic moves in the bond and currency markets mean “something broke” and it may be wise to wait for that information to come to light, Smith said.

On the positive side, Smith pointed to a strong job market and signs of continued travel spending as a sign that the US economy can avoid a major recession.

—Jesse Libra

US 10-year bond yield closes at key 4% level

the The 10-year Treasury yield is approaching 4%, a level it hasn’t touched since 2010.

the USA 10 years it is the benchmark yield that sets the course for mortgage rates for homes and other commercial and consumer loans. It has jumped higher this week as UK equity yields rose and expectations of a hawkish Federal Reserve.

The return was 3.96% in afternoon trading. The 10-year yield reversed an earlier decline and gained a few basis points. (One basis point equals 0.01 of a percentage point)

“It’s definitely been impressive, and I think no one is willing to step in and catch the falling knife,” said BMO’s Ben Jeffery. He added that a lack of liquidity has also been pushing up yields, which are moving in the opposite direction of price.

Jeffery said the yield was also rising ahead of the 1pm 5-year note auction.

He said the 10-year bond tested the 4% level in 2010. “The last time we were sustainably above 4% was 2008. There’s another technical level at 4.10% and then there’s not much to highlight up to 4.25%”, he said.

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