【Morning Report】US PCE data, BOJ meeting this week, will the risk-off stop? Earnings reports to intensify from the 23rd, focus on semiconductor-related sectors
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Here are the key points of the early morning report today.
● [Tokyo Stock Market Forecast Range] 6,700-7,300 thousand yen (closing price on the 19th of 7,068.35 yen).
● Will the patient stance of the Fed be further supported by US PCE data this week - this week's macro focus.
● Capital outflows from US stocks due to interest rate concerns; good news is bad news - BofA.
● Will the risk-off sentiment stop at this week's Bank of Japan meeting? Focus on Japanese stocks, the yen, and crude oil.
● Earnings reports for the March quarter will intensify from the 23rd - keep an eye on the semiconductor sector.
● 'Wealthy' companies raising dividend expectations - automotive sector stands out.
Tesla has successively lowered prices over the weekend, targeting EV and self-driving assistance software.
moomoo News - Amelia
● [Tokyo Stock Market Forecast Range] 6,700-7,300 thousand yen (closing price on the 19th of 7,068.35 yen).
● Will the patient stance of the Fed be further supported by US PCE data this week - this week's macro focus.
● Capital outflows from US stocks due to interest rate concerns; good news is bad news - BofA.
● Will the risk-off sentiment stop at this week's Bank of Japan meeting? Focus on Japanese stocks, the yen, and crude oil.
● Earnings reports for the March quarter will intensify from the 23rd - keep an eye on the semiconductor sector.
● 'Wealthy' companies raising dividend expectations - automotive sector stands out.
Tesla has successively lowered prices over the weekend, targeting EV and self-driving assistance software.
moomoo News - Amelia
Market Overview
In the US stock market on the 19th, the Dow Jones Industrial Average was up 211.02 cents to 3,979,860.40 cents, an increase of 0.03% compared to the previous trading day. The Nasdaq Composite Index was down 319.489 points to 1,5282.010, a decrease of 0.01%. The Tokyo stock market on the 22nd may experience a back and forth pattern as the Nikkei Average strengthens and weakens around the previous week's closing price. Although there may be a rebound in buying due to the reaction from the significant selling pressure driven by futures trading at the end of the previous week, limited demand buying and strong resistance levels are expected.
In the US stock market on the 19th, the Dow Jones Industrial Average was up 211.02 cents to 3,979,860.40 cents, an increase of 0.03% compared to the previous trading day. The Nasdaq Composite Index was down 319.489 points to 1,5282.010, a decrease of 0.01%. The Tokyo stock market on the 22nd may experience a back and forth pattern as the Nikkei Average strengthens and weakens around the previous week's closing price. Although there may be a rebound in buying due to the reaction from the significant selling pressure driven by futures trading at the end of the previous week, limited demand buying and strong resistance levels are expected.
Top News
US PCE data, along with the Federal Reserve's patient stance, could further support the idea that progress in reducing inflation is stagnating. Currently, there are signs of an intention to maintain higher interest rates for a longer period of time than previously assumed, which could support a change in tone.
US financial regulators are likely to confirm further signs this week that progress in reducing inflation is stagnating. The current stance indicates an intention to maintain higher interest rates for a longer period of time than previously assumed, potentially supporting a change in tone.
Related Articles:Central bank officials are on guard against the oil shock, and are wary of the resurgence of inflation due to the tension in the Middle East.
Funds are flowing out of US stocks due to interest rate concerns, and good news is not good - BofA.
US Bank $Bank of America (BAC.US)$According to reports, concerns about the persistence of a strong US economy and inflation causing the Federal Reserve to keep interest rates higher for longer have prompted investors to withdraw funds from stocks.
Will the risk-off sentiment stop at the Bank of Japan meeting this week? Japanese stocks, the yen, and crude oil.
The financial markets are shrouded in a risk-off mood. It is reported that Israel launched a counterattack against Iran in the early hours of the 19th (Japan time). The Nikkei Average recorded its largest decline of the year on the same day. Will the risk-off sentiment stop? Here are the three points for the week: - Escalation of the Middle East situation, 'Crude oil, surge if there is a supply impact' - Major corporate earnings in the US and Japan, high expectations but also disappointment in selling - Bank of Japan meeting at the weekend, the market expects 'no change' for now
Related Articles:The accommodating financial environment is expected to continue for the time being, but the purchase of government bonds will eventually be reduced - Bank of Japan governor.
US stock index futures rise in after-hours trading, providing a sense of relief without any weekend turbulence.
The yen is in the 154 yen range, supported by concerns about intervention and the Bank of Japan's meeting, as long-term US interest rates stabilize.
The announcement of earnings for the March quarter will intensify, with a focus on semiconductor-related companies.
The announcement of the financial results for the fiscal year ending in March 2024 by listed companies is intensifying. This week will start from the 23rd. $Nidec (6594.JP)$ and $DISCO CORPORATION (DISPF.US)$ and $Advantest (6857.JP)$ will make announcements, mainly in mid-May. $Toyota Motor (7203.JP)$ Ya $Sony Group (6758.JP)$Amid changing circumstances such as the receding speculation of a rate cut in the USA and the escalating Middle East situation, attention is focused on the future performance and shareholder return stance.
"Wealthy" companies are increasing dividend expectations, particularly prominent in the automotive sector.
When searching for promising small and mid-cap stocks, "cash-rich" is also one of the criteria. In addition to the Tokyo Stock Exchange's request to improve low P/B ratios, activist shareholders are becoming more active. If a wealthy company with a P/B ratio of less than 1 is identified, there may be a potential to strengthen shareholder returns as part of a response. Nikkei Veritas extracted cash-rich stocks from companies listed on the TSE Prime or Standard with a market capitalization of over 30 billion yen and less than 500 billion yen and P/B ratios less than 1.
Kubota's Vice President remains optimistic about the construction machinery sector, mentioning positive winds.
How are Japanese companies thinking about the potential impact if the "What if Trump wins" scenario in the US presidential election in November becomes a reality? Yoshikawa Masato, Vice President of "company name", suggests that with the return of manufacturing to the US, the establishment of factories, and the development of residential areas around them could be viewed positively and does not necessarily need to be perceived negatively. $Kubota (6326.JP)$With Tesla lowering prices over the weekend, focusing on EV and self-driving assistance software.
If Tesla successively reduces prices over the weekend, EV and self-driving support software will be the targets.
American electric vehicle (EV) manufacturer, $Tesla (TSLA.US)$Over the weekend, the company lowered the prices of its own models in China, Europe, and the USA, and also reduced the price of software. This is due to poor sales and a buildup of inventory.
US PCE data, along with the Federal Reserve's patient stance, could further support the idea that progress in reducing inflation is stagnating. Currently, there are signs of an intention to maintain higher interest rates for a longer period of time than previously assumed, which could support a change in tone.
US financial regulators are likely to confirm further signs this week that progress in reducing inflation is stagnating. The current stance indicates an intention to maintain higher interest rates for a longer period of time than previously assumed, potentially supporting a change in tone.
Related Articles:Central bank officials are on guard against the oil shock, and are wary of the resurgence of inflation due to the tension in the Middle East.
Funds are flowing out of US stocks due to interest rate concerns, and good news is not good - BofA.
US Bank $Bank of America (BAC.US)$According to reports, concerns about the persistence of a strong US economy and inflation causing the Federal Reserve to keep interest rates higher for longer have prompted investors to withdraw funds from stocks.
Will the risk-off sentiment stop at the Bank of Japan meeting this week? Japanese stocks, the yen, and crude oil.
The financial markets are shrouded in a risk-off mood. It is reported that Israel launched a counterattack against Iran in the early hours of the 19th (Japan time). The Nikkei Average recorded its largest decline of the year on the same day. Will the risk-off sentiment stop? Here are the three points for the week: - Escalation of the Middle East situation, 'Crude oil, surge if there is a supply impact' - Major corporate earnings in the US and Japan, high expectations but also disappointment in selling - Bank of Japan meeting at the weekend, the market expects 'no change' for now
Related Articles:The accommodating financial environment is expected to continue for the time being, but the purchase of government bonds will eventually be reduced - Bank of Japan governor.
US stock index futures rise in after-hours trading, providing a sense of relief without any weekend turbulence.
The yen is in the 154 yen range, supported by concerns about intervention and the Bank of Japan's meeting, as long-term US interest rates stabilize.
The announcement of earnings for the March quarter will intensify, with a focus on semiconductor-related companies.
The announcement of the financial results for the fiscal year ending in March 2024 by listed companies is intensifying. This week will start from the 23rd. $Nidec (6594.JP)$ and $DISCO CORPORATION (DISPF.US)$ and $Advantest (6857.JP)$ will make announcements, mainly in mid-May. $Toyota Motor (7203.JP)$ Ya $Sony Group (6758.JP)$Amid changing circumstances such as the receding speculation of a rate cut in the USA and the escalating Middle East situation, attention is focused on the future performance and shareholder return stance.
"Wealthy" companies are increasing dividend expectations, particularly prominent in the automotive sector.
When searching for promising small and mid-cap stocks, "cash-rich" is also one of the criteria. In addition to the Tokyo Stock Exchange's request to improve low P/B ratios, activist shareholders are becoming more active. If a wealthy company with a P/B ratio of less than 1 is identified, there may be a potential to strengthen shareholder returns as part of a response. Nikkei Veritas extracted cash-rich stocks from companies listed on the TSE Prime or Standard with a market capitalization of over 30 billion yen and less than 500 billion yen and P/B ratios less than 1.
Kubota's Vice President remains optimistic about the construction machinery sector, mentioning positive winds.
How are Japanese companies thinking about the potential impact if the "What if Trump wins" scenario in the US presidential election in November becomes a reality? Yoshikawa Masato, Vice President of "company name", suggests that with the return of manufacturing to the US, the establishment of factories, and the development of residential areas around them could be viewed positively and does not necessarily need to be perceived negatively. $Kubota (6326.JP)$With Tesla lowering prices over the weekend, focusing on EV and self-driving assistance software.
If Tesla successively reduces prices over the weekend, EV and self-driving support software will be the targets.
American electric vehicle (EV) manufacturer, $Tesla (TSLA.US)$Over the weekend, the company lowered the prices of its own models in China, Europe, and the USA, and also reduced the price of software. This is due to poor sales and a buildup of inventory.
Foreign exchange
Key Market Events
Source: Dow Jones, MINKABU, Bloomberg, The Nikkei, Wealth Advisor, Fisco
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よろぴこ : Once my stock holdings drop this far, I feel like an ascetic monk anymore. If your mind is destroyed, the decline will cool down again...