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Morning report: FRB's "hawkish" rate cut, retreat in next year's forecast to 2 times, significant decline in US stocks 3 indicators, yen depreciation progressing to the 154 yen range later.

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moomooニュース米国株 wrote a column · Dec 19 07:03
Morning report: FRB's "hawkish" rate cut, retreat in next year's forecast to 2 times, significant decline in US stocks 3 indicators, yen depreciation progressin...
Dear MOOMOO users, good morning!The key points of this morning's report are here.
Tokyo stock market is expected to range from 800,000 yen to 870,000 yen (closing price on the 18th is 908,181 yen and 71 sen).
FRB cuts interest rates by 0.25 points, hinting at a slowdown in the pace next year.
Micron tumbles after earnings hours with significant downturn, reflecting dislike for guidance due to weak demand for smartphones and PCs.
Mr. Mask expresses opposition to interim budget proposal, deepening confusion within the Republican Party.
EU to investigate the link between Pfizer and eye diseases.
Netflix fined by Dutch authorities in regards to handling of personal information.
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Market Overview
Morning report: FRB's "hawkish" rate cut, retreat in next year's forecast to 2 times, significant decline in US stocks 3 indicators, yen depreciation progressin...
On the 18th, the US stock market experienced a significant decline. It has been the first time since August that all 3 indices dropped by more than 2%. The Dow Jones Industrial Average has been declining for 10 consecutive trading days. With the Federal Open Market Committee (FOMC) results pending, cautious sentiment increased. The market opened with mixed reactions after the initial trading. While the Dow average saw some buying interest in some key stocks, leading to an increase, the Nasdaq started with a slight decline. As expected, the key policy interest rate was reduced by 0.25% at the FOMC meeting, but the disappointment stemmed from the decrease in the projected number of rate cuts for the year 2025 compared to previous expectations, leading to the decline. Subsequently, as long-term interest rates increased, the selling pressure expanded, resulting in a broader decline at the close.
On the 19th, the Tokyo stock market is expected to see a widespread sell-off, particularly in key stocks, with a high possibility of a significant decline in the Nikkei Stock Average.
Morning report: FRB's "hawkish" rate cut, retreat in next year's forecast to 2 times, significant decline in US stocks 3 indicators, yen depreciation progressin...
Top News
FRB cuts interest rates by 0.25 points, suggesting a slowdown in pace next year.
The Federal Reserve Board (FRB) decided to further reduce the target for the policy interest rate by an additional 0.25 points at the Federal Open Market Committee (FOMC) meeting held until the 18th. However, it suggested that there is even more uncertainty about the magnitude and pace of future interest rate cuts. Fed Chair Powell stated at the post-FOMC press conference, "We can consider adjusting policy interest rates even more cautiously in the future."
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Dollar-yen temporarily rose to the upper 154 yen level, giving the impression that the FRB has completely shifted to a hawkish interest rate cut stance.
Some FRB officials are considering Trump's policies in the outlook, according to Chairman Powell.
Micron experienced a significant decline after earnings in after-hours trading, reflecting concerns about guidance due to sluggish demand for smartphones and PCs.
$Micron Technology (MU.US)$Significant decline in after-hours trading. It seems that they are disappointed with the guidance for the second quarter. Both earnings per share and revenue fell below expectations. The company stated, "The consumer-oriented market is currently sluggish, but we expect a recovery toward growth in the second half of the 25th fiscal year," reflecting a decline in demand for smartphones and computers.
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Micron transforms into profit in the first quarter with a revenue increase of 84%, reaching 8.7 billion dollars, operating profit of 2.17 billion dollars, and EPS of 1.67 dollars.
Mr. Mask expresses opposition to the interim budget proposal, deepening confusion within the Republican Party.
Mr. Mask, who is set to lead cost-cutting in the upcoming Trump administration, posted a tweet before dawn on the 18th. He echoed the criticism of lawmakers on the interim budget and stated, "This bill should not be approved." He also later posted, "Those (lawmakers) who cast a vote in favor of this outrageous spending bill deserve to be voted out in two years!"
The European Medicines Agency (EMA) of the European Union (EU) announced on the 18th that it will investigate the potential relationship between Denmark's pharmaceutical giant's diabetes treatment drug, Ozempic, and a rare eye disease causing vision impairment. Concerns have been raised recently by two scientific studies.
The Dutch Data Protection Authority (DPA) announced on the 18th that the Office of the Data Protection (DPA) has imposed a fine on Netflix due to concerns over the handling of personal information. $Novo-Nordisk A/S (NVO.US)$The European Medicines Agency (EMA) of the European Union (EU) announced on the 18th that it will investigate the potential relationship between Denmark's pharmaceutical giant's diabetes treatment drug, Ozempic, and a rare eye disease causing vision impairment. Concerns have been raised recently by two scientific studies.
The Dutch Data Protection Authority (DPA) announced on the 18th that the Office of the Data Protection (DPA) has imposed a fine on Netflix due to concerns over the handling of personal information.
The Dutch Data Protection Authority (DPA) announced on the 18th that the Office of the Data Protection (DPA) has imposed a fine on Netflix due to concerns over the handling of personal information. $Netflix (NFLX.US)$A fine of 4.57 million euros (approximately 37 million yen) was imposed. It was determined that the company did not provide users with sufficient information regarding the handling of personal information.
Boeing resumes production of '737' and '767' aircraft.
US aerospace giant Boeing has resumed production of each aircraft including '737', '767', '777', and '777X'. Chief Operating Officer Stephanie Pope revealed on LinkedIn that multiple factories on the US Pacific Northwest coast have restarted operations using safety management systems. Boeing had announced earlier this month the resumption of production of its main narrow-body aircraft, the '737 MAX'.
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Morning report: FRB's "hawkish" rate cut, retreat in next year's forecast to 2 times, significant decline in US stocks 3 indicators, yen depreciation progressin...
Source: Dow Jones, MINKABU, Trader's Web, Fisco
Morning report: FRB's "hawkish" rate cut, retreat in next year's forecast to 2 times, significant decline in US stocks 3 indicators, yen depreciation progressin...
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  • さる歩き : In the past two months or so, the asset effect of cryptocurrencies alone has exceeded 200 trillion yen, while in the US stock market, AVGO rose by about 40% in just two days, creating an asset effect of about 50 trillion yen. Is there no way the US economy could deteriorate?