Asia-Pacific stocks set to fall ahead of China inflation data

August was marked by extremely hot temperatures in parts of China, prompting temporary power rationing in some regions. Pictured here on Aug. 24, 2022, is the central city of Chongqing's skyline with the lights partially turned off to conserve energy during the heatwave.

Vcg | Visual China Group | Getty Images

Thursday's consumer price report for September was "modestly hotter-than-expected" and insufficient to stop the Federal Reserve from raising rates one more time before the end of 2023, according to Wolfe Research chief investment strategist Chris Senyek.

"Our sense is that the FOMC will need to see core inflation break below 4% and believe it will continue to trend downward to pause and remain on hold for a prolonged period," Senyek wrote to clients.

Over the medium, Senyek believes the lagged effect of the Fed's rate hikes since March 2022 will eventually "spark economic disappointments, rising recession concerns and a downward EPS revision cycle in the months ahead," and that declining interest rates will be insufficient to offset the downward bias.

— Scott Schnipper, Michael Bloom

Stronger economic growth, accelerating government spending and a bottoming out of inflation are just some reasons why many analysts are bullish on India — and asset management firm AllianceBernstein is no exception.

The analysts expect the South Asian country to give "one of the highest returns among key markets throughout the world for the next several years."

AllianceBernstein revealed some of its favorite stocks in the country, including two new names on its radar.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Artificial intelligence-related stocks have rallied as the theme gained traction this year, with investors piling into favorites such as Nvidia and Microsoft.

But according to Deepwater Asset Management, there's one under-the-radar AI stock that will be essential for the long-term infrastructure rollout of artificial intelligence.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Oil prices bounced back on Thursday, with futures for U.S. benchmark West Texas Intermediate crude rising 1.6% to trade just below the $85 per barrel mark. The move erased some of Wednesday's declines, the price of oil still remains below Monday's high and levels from late September, when WTI traded above $90 per barrel.

Helima Croft, RBC Capital Markets commodities strategist, said on "Squawk on the Street" that a report showing a surprising gasoline build in the United States last week is helping to keep prices in check despite the fears that the Israel-Hamas war could expand and disrupt the global oil supply.

"The question is what's going to win out this year. This broader concern about the macro backdrop — potential demand softness — or questions about the security of supply," Croft said.

— Jesse Pound

Birkenstock's recent initial public offering (IPO) is expected to help boost shares of a British footwear brand, according to Investec analysts.

German shoe brand Birkenstock's debut on the New York Stock Exchange earlier this week has given investors and analysts insight into the financials and metrics of a sizeable single-brand footwear company for the first time. Using this information as a benchmark, Investec analysts believe that there is significant growth potential for a London-listed stock that the market may be underestimating.

CNBC Pro subscribers can read more here.

— Ganesh Rao