Fed minutes, Bank of Korea decision, Sri Lanka

Bank of Korea raises rates by 25 basis points, meets expectations

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

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

The country’s inflation rate for October was 5.7%, according to the latest data released earlier this month – well above the central bank’s target of 2%.

BOK Governor Rhee Chang-yong is scheduled to hold a press conference on the monetary decision later in the day.

– Jihye Lee

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

According to Rob Luna, chief investment strategist at Surevest Asset Management, there’s one large-cap stock that investors need to buy right now.

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He calls its chairman of the board “a significant visionary”.

While Luna picked one large-cap stock, he generally advised investors to reallocate to smaller stocks, citing two stocks he called “best in class.”

CNBC Pro subscribers can read more here.

— Weizhen Tan

Stocks rise for a second day as Wall Street cheers for the Fed to announce smaller rate hikes

Stocks rose on Wednesday for a second straight day of gains as investors welcomed minutes from the Federal Reserve that signaled a slower pace of interest rate hikes.

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

Shares of Nordstrom fell 4.24% after the department store chain reaffirmed its forecast. However, Nordstrom beat profit and sales expectations in its latest results, according to consensus expectations on Refinitiv. Tesla rose 7.82% after Citi upgraded the stock from sell to neutral. Deere increased by 5.03% on lower earnings.

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— Carmen Reinicke

CNBC Pro: Betting against UK supermarket, short-seller expects nearly 50% drop in share price

Investors in the British supermarket company are in for more pain if the short-sellers’ predictions come true.

The hedge fund currently has a bad bet worth £32.6m and expects the grocer’s shares to fall 44%.

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

CNBC Pro subscribers can read more here.

— Ganesh Rao

Fed minutes show smaller rate hikes ahead, stocks rise

Stocks rose on Wednesday afternoon following the release of minutes from the Federal Reserve’s November meeting. The report showed that the central bank is seeing progress in its fight to reduce inflation and expects to slow the pace of interest rate hikes going forward.

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“A substantial majority of participants judged that slowing the pace of increases would probably soon be appropriate,” the minutes said. “Uncertain lags and magnitudes associated with the effects of monetary policy actions on economic activity and inflation were among the reasons cited why such an assessment was important.”

This means that the Fed is likely to make a smaller rate hike in December and in the first months of 2023.

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

— Carmen Reinicke

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