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Fed Minutes, Bank of Korea Decision, Sri Lanka

Fed Minutes, Bank of Korea Decision, Sri Lanka
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The Bank of Korea hikes rates by 25 basis points, in line with expectations

The Bank of Korea raised its benchmark interest rate up 25 basis points to 3.25%, a smaller increase than the previous move and broadly in line with expectations.

A Reuters poll of economists had expected the move amid signs of slowing domestic growth.

The national inflation rate for October was 5.7%, according to the latest figures released earlier this month – much higher than the central bank’s 2% target.

BOK Governor Rhee Chang-yong will hold a press conference on the currency decision later in the day.

– Jihye Lee

CNBC Pro: The money manager says investors need to buy this large-cap stock now

According to Rob Luna, chief investment strategist at asset manager Surevest, there’s one large-cap stock investors need to buy into now.

He calls his CEO a “major visionary.”

While Luna picked the one large-cap stock, he generally advised investors to switch to smaller names, naming two stocks he called “best-in-breed.”

CNBC Pro subscribers can read more here.

— Wheat Tan

Stocks climb for the second day as Wall Street cheers the Fed and signals smaller rate hikes

Stocks rose on Wednesday, posting a second straight day of gains as investors cheered minutes from the Federal Reserve signaling a slower pace of upcoming rate hikes.

The Dow Jones Industrial Average rose 95.96 points, or 0.28%, to 34,194.06. The S&P 500 was up 0.59% to close at 4,027.26 and the Nasdaq Composite was up 0.99% to 11,285.32.

Nordstrom stock down 4.24% after the department store chain reiterated its guidance. However, Nordstrom beat earnings and sales expectations in its most recent results, according to consensus expectations on Refinitiv. Tesla rose 7.82% after Citi upgraded shares to neutral from sell. deer rose 5.03% on a profit hit.

– Carmen Reinicke

CNBC Pro: Betting against a UK supermarket, short sellers expect share price to fall nearly 50%

Investors in a UK supermarket company will be in even more pain if a short seller’s prediction comes true.

The hedge fund is currently holding a £32.6m bearish bet and expects shares of the grocer to fall 44%.

The fund’s chief investment officer also believes the supermarket will raise fresh capital year after year, diluting shareholders to stay afloat in a challenging environment.

CNBC Pro subscribers can read more here.

— Ganesha Rao

Fed minutes show smaller rate hikes ahead, stocks gain

Shares rose Wednesday afternoon after the minutes were released November Federal Reserve meeting. The report showed that the central bank sees progress in its fight against inflation and expects to slow the rate hikes going forward.

“A clear majority of participants believed that a slowdown in the pace of growth was likely to be appropriate soon,” the minutes read. “The uncertain lags and magnitudes associated with the impact of monetary policy action on economic activity and inflation were among the reasons given why such an assessment was important.”

That means the Fed is likely to make a smaller rate hike in December and the early months of 2023.

Markets cheered the news. The Dow Jones Industrial Average rose 130 points, or 0.38%. The S&P 500 was up 0.70% and the Nasdaq Composite was up 1.10%.

– Carmen Reinicke

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