Wall Street, Reserve Bank of Australia, interest rates

Beijing announces further Covid easing measures

The city of Beijing announced that negative Covid tests will no longer be required to enter most public areas, shopping malls or residential areas, while bars and so-called KTV lounges or karaoke bars.

Separately, Reuters reported Monday that China could announce further easing of Covid curbs as early as Wednesday, citing two sources with knowledge of the matter.

The report said there would be 10 new measures in addition to the 20 that were released in November.

Several cities in China have eased Covid testing rules in recent days.

– Evelyn Cheng, Abigail Ng

Foxconn reports slump in sales after Covid-related unrest at factory in China

Apple supplier Foxconn, also known as Hon Hai Precision Industry, reported that its monthly revenue fell over 11% in November compared to the same period last year.

Revenue for the month totaled 551.1 billion new Taiwan dollars ($18 billion), down more than 29% from October.

The Taiwanese company said the drop was due to “production gradually entering off-peak seasonality and part of shipments being impacted by the epidemic in Zhengzhou,” where the company operates the world’s largest iPhone assembly plant.

Shares of the company fell 1.48% in Asia this morning.

– Arjun Kharpal

Chinese markets paused trading for 3 minutes on Tuesday as the nation mourns the former leader

Australia expects 25bps rate hike: Reuters poll

Australia’s central bank is expected to raise interest rates by 25 basis points to 3.1% on Tuesday, economists polled by Reuters said.

It would be the Reserve Bank of Australia’s eighth hike this year and the third straight 25 basis point hike since October.

In a statement after its November meeting, the RBA said the series of interest rate hikes is “full effect”.

Meanwhile, Matt Simpson, senior market analyst at City Index, said there was potential for another pause in rate hikes.

“The case for a break is certainly building,” he said. “Some measures of inflation expectations are moving down and monthly inflationary pressures suggest that inflation has peaked.”

Inflation in Australia remains well above the RBA’s target of 2% to 3%, although it eased slightly in October, according to the central bank’s monthly consumer price indicator.

– Charmaine Jacob

Stocks end lower to start the week

Stocks ended lower on Monday as fears mounted that the US Federal Reserve will hike further interest rates.

The Dow Jones Industrial Average slipped 482.78 points, or 1.4%, to 33,947.10. The S&P 500 was down 1.79% to trade at 3,998.84, while the Nasdaq Composite fell 1.93% to close at 11,239.94.

— Samantha Subin

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