Asian markets fall as China keeps benchmark rates unchanged; Fed decision on the horizon – CNBC

Shares of Chinese electric vehicle maker Nio fell 12.63% after the company announced a $1 billion convertible bond offering, split into two bonds late Tuesday.

One $500 million bond will mature in 2029 and carry a coupon of 3.875% per annum, while the remaining $500 million bond will mature in 2030 and carry a coupon of 4.625%.

Nio said proceeds from the bonds will be used to repurchase $500 million of bonds expiring in 2026 and 2027, as well as “to further strengthen its balance sheet position as well as for general corporate purposes.”

-Lim Hui Jie

Raymond James Investment Management’s Matt Orton says a tech giant is currently “the cheapest of all the mega-cap names.”

It’s one of the “two big long-term winners” in artificial intelligence and is underappreciated in this area, he told CNBC.

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— Weizhen Tan

South Korea’s producer price index rose 1% year-on-year in August, marking the first increase in the wholesale inflation rate since July 2022.

This is more than the 0.3% year-on-year gain recorded in July. On a monthly basis, the PPI gained 0.9% in August, compared to an increase of 0.2% the previous month.

Agricultural, forestry and marine products experienced the largest price increase in August, with an increase of 3.6% year-on-year and 7.3% month-on-month.

The PPI measures the average change in the price of goods and services sold by manufacturers and producers in the wholesale market.

-Lim Hui Jie

Falling house prices and rising rents are set to benefit two UK stocks, according to stock analysts.

As mortgage rates rise and put more pressure on homebuilders to improve sales, these two unique stocks are poised to benefit.

Analysts expect one of the stocks to rise more than 60% over the next 12 months, thanks to the trend.

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-Ganesh Rao

This is an important week for central banks, both in the United States and abroad.

The Federal Reserve begins its two-day policy meeting on Tuesday. Traders give a 99% chance that the Fed will skip a rate hike when it announces policy Wednesday, according to CMEGroup’s FedWatch tool, which gauges prices of federal funds futures contracts. The Fed will also offer economic forecasts on Wednesday.

Central banks in several other countries are also expected to announce their policy decisions this week. Here is a list of countries expected to release their decisions within 36 hours of the Fed’s announcement expected Wednesday at 2 p.m. ET, according to Bespoke Investment Group:

• Brazil
• Indonesia
• Japan
• Norway
• South Africa
• Sweden
• Swiss
• Taiwan
• Türkiye
• The United Kingdom

Sam Stovall, chief investment strategist at CFRA Research, said investors around the world “are eager to know what their central banks are likely to do.”

-Alex Harring

Oil prices jumped more than a dollar, marking a fourth consecutive session of gains, as weak U.S. shale production added to supply concerns linked to prolonged production cuts by Saudi Arabia and Russia.

Here’s how prices performed Tuesday morning:

Prices have risen for three consecutive weeks, with both benchmarks hitting their highest levels since last year.

— Pia Singh

All 11 sectors of the S&P 500 fell on Tuesday.

The broad index slipped about 0.7% shortly after 1 p.m. ET. Consumer discretionary, energy and industrials stocks were among the worst performers, with all three sectors falling more than 1%.

Utilities and health care managed to limit their losses, falling just 0.3% each.

-Alex Harring