Thursday, May 26News That Matters
Shadow

Tag: market

Investors will get temporary relief from falling Treasury yields this spring, market forecaster Jim Bianco predicts

Finance
Investors may get a break from the market's wild swings.Wall Street forecaster Jim Bianco expects stocks to get a boost this spring because the benchmark 10-year Treasury Note yield will temporarily retreat."The near-term forecast is it's oversold, and it's probably due for a rally – meaning that we would have falling rates," the Bianco Research president told CNBC's "Trading Nation" on Friday.He predicts the drop will benefit the indexes, including the tech-heavy Nasdaq which has gotten rocked by rising rates in the past month. The Nasdaq is particularly vulnerable to rates because technology is considered a long duration asset like Treasurys."The stock market will definitely act like it's a relief," Bianco said.The 10-year yield closed the week at 1.70%, and it's up almost 89% so far thi...

Vanguard gave up on mutual funds in China, but it may have found a different way into the market

Finance
A logo of Ant Group is pictured at the headquarters of the company, an affiliate of Alibaba, in Hangzhou, Zhejiang province, China October 29, 2020.Aly Song | ReutersBEIJING — Vanguard's experiment with financial technology in China is showing early signs of success.In less than a year, more than 1 million users have signed up for "BangNiTou," a smartphone-based investment advisory product run through the American mutual fund giant's joint venture with Alibaba-affiliate Ant Group.That's according to a release from BangNiTou on Thursday, just four days after Vanguard said it would drop its own pursuit of a mutual fund license in China. Instead, the company plans to focus on its partnership with Ant.Ant operates Alipay — one of the two dominant mobile payment apps in China — on which BangNiT...
Lessons from the Gita for market practitioners: Different paths to the same goal

Lessons from the Gita for market practitioners: Different paths to the same goal

Finance
As you grow older, your reading pattern changes. I find myself engaging in more of spiritual reading and, of course, many of those texts are based on concepts from the Bhagavad Gita. Reading some parts, I was struck by the relevance that some of the observations in that great text can have for financial markets. This is a bad habit I have, of taking every good thing of life and transporting those into the market context, because I try and draw a lot of parallels between how you live and lead your life and how you act and perform in the markets. In Chapter 12 of the Gita, Arjuna asks Krishna as to which form of worship will be more preferred – whether through the form of the Lord or through meditation on the formless nature of the Lord. While the Lord answers Arjuna in different ways to mak...

Trading tax hike won’t harm competitiveness of Hong Kong’s stock market, says financial secretary

Finance
Signage for the Hong Kong Exchanges & Clearing Ltd. (HKEx) in Hong KongJustin Chin | Bloomberg | Getty ImagesHong Kong's plan to increase the stamp duty on stock trading will not harm the competitiveness of the city's financial markets, Financial Secretary Paul Chan told CNBC on Friday.Chan said in his budget speech on Wednesday that the government will raise the stamp duty paid on listed stock trades from 0.1% to 0.13%. The announcement sparked a sell-off in shares of the operator of the city's stock exchange, and the broader Hong Kong market.   "The Hong Kong market has been doing very well, very active, the volume has gone up quite a bit," Chan told CNBC's Emily Tan."So, perhaps this is the time for us to increase a little bit on the stamp duty which will not harm our comp...

Fed’s Williams say high market prices justified by economic growth and low rates

Finance
New York Federal Reserve President John Williams said Friday that high prices for stocks and other assets are justified in light of a growing economy and low interest rate landscape.With stocks pushing to new heights on valuations not seen in decades, and as corporate bond yields plunge, the central bank official said he's not worried about current pricing."Market participants and investors around the world are looking ahead through this year and looking into an economy that hopefully have a pretty robust recovery and a strong expansion over the next several years, which would support stronger valuations," Williams told CNBC's Steve Liesman during an interview on "The Exchange."Major averages have managed to build on 2020's gains despite some nerve-jangling volatility.Fed policy of low rat...