Credit Suisse says iron ore prices will peak at around $130 to $140 this year
Iron ore prices are expected to be around $130 to $140 as traders keep China’s reopening in focus, Credit Suisse head of energy and resources research Saul Kavonic said.
“We expect $130 to $140 to be where prices end and peak this year,” he said.
While iron ore demand in the past few weeks has been bolstered by speculative buying and holiday buying, he said markets are currently watching how China’s reopening plays out and the rollout of any infrastructure stimulus.
He said these measures will “sustain demand for iron ore during this year well into next year.”
Australia’s mining giant Rio Tinto released their production results for the fourth quarter which slightly beats the estimates.
“The real focus [of] “Rio has been on iron ore, which has supported the whole sector over the last few months, which has been a call that finally got good at the end of last year and the beginning of this year,” he said.
Rio Tinto‘s shares last traded down 1.11 percent.
China’s retail sales beat estimates, economy grows more than expected
China retail sales in December beat estimates, falling just 1.8% year-on-year, significantly better than the 8.6% decline projected in a Reuters poll.
Industrial production also rose 1.3% in December, beating expectations for a 0.2% rise.
In the fourth quarter, China’s economy grew by 2.9% year-on-year, better than the expected growth of 1.8%. While quarterly growth was flat, it still beat expectations for a 0.8% decline.
Despite better-than-expected data, the Chinese offshore yuan weakened sharply from 6.7403 to 6.7563 against the US dollar shortly after the release.
Alibaba shares rise after Ryan Cohen reportedly takes a stake in the company
Shares in Alibaba rose after The Wall Street Journal writes that Ryan Cohen built a stake in the company “worth hundreds of millions of dollars.”
Cohen, who founded online pet retailer Chewy and is also chairman of GameStop, is privately pushing Alibaba to accelerate and further boost its stock buyback program, the Journal report said.
Hong Kong-listed shares of Alibaba rose 2% in the first hour of trading. The stock has since pared its gains to trade roughly flat.
– Jihye Lee
China’s Liu He is to meet with US Treasury Secretary Janet Yellen
US Treasury Secretary Janet Yellen is scheduled to hold a meeting with Chinese Vice Premier Liu He on the sidelines of the World Economic Forum, China’s Ministry of Commerce said in a announcement.
The two will hold a meeting to “strengthen macroeconomic and fiscal coordination,” the ministry said.
The meeting will take place in Zurich on January 18, according to the statement, which adds that the two will discuss the implementation of the agreements reached between US President Joe Biden and Chinese President Xi Jinping late last year in Bali, Indonesia .
The sit-down will mark the first face-to-face meeting between Yellen and Liu.
separately, Political reported US Secretary of State Antony Blinken will meet newly appointed Chinese Foreign Minister Qin Gang in Beijing on 5-6. February, citing Washington-based diplomats familiar with the matter.
– Jihye Lee
Singapore’s non-oil domestic exports fall more than 20% in December
Singapore’s non-oil domestic exports fell 20.6% in December year-on-year, a further drop from a 14.7% fall in November.
The steep decline was mainly driven by exports to China, Indonesia and Hong Kong, according to the government announcement. Exports to South Korea and Japan increased, it said.
The nation’s total trade fell 7.7% in the month of December compared to a year ago – with exports down 7.1% and imports also down 8.2%.
– Jihye Lee
CNBC Pro: This under-the-radar global carbon sequestration stock could rise 65%, investment banks say
Shares of an under-the-radar company are expected to rise 65% on rising global demand for emissions reduction technology, according to investment banks that analyze the stock.
The company’s latest innovation, unveiled last week, could cut the energy needed to capture carbon and improve the company’s profitability in the future, according to analysts at a German investment bank.
CNBC Pro subscribers can read more here.
– Ganesh Rao
Where the major indices stand as the first two weeks of 2023 trade
With the first two weeks of trading in 2023, the three major indexes are up so far for the year.
That Nasdaq Composite leads the way, adding 5.9% as investors bought battered tech stocks on rising hopes of a better landscape for growth stocks. That S&P 500 and Dow followed and rose 4.2% and 3.5% respectively.
– Alex Harring
Stock futures open lower
Stock futures were lower despite the market coming off a winning week.
Futures tied to the Dow fell 0.1 percent. S&P 500 and Nasdaq-100 futures fell 0.2% and 0.4%, respectively.
– Alex Harring
