US Market Outlook: “I don't think there will be interest rate cuts until mid-2024,” the US Atlanta Fed President said, the Dow Jones Industrial Average started at 48 dollars lower

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US private investors who don't end with being bearish are interested in energy
US individual investors are increasing their bearish mentality. According to the quarterly survey published by Morgan Stanley Wealth Management on the 16th, the percentage of bearish people has increased over market prices for the fiscal year ending 2023/10-12. In addition to inflation remaining high, geopolitical risks such as the situation in the Middle East are factors of turbulence. There is also a growing view that the energy sector is a promising investment destination.

There is also a possibility that there will be interest rate cuts by Fed President Bostic Atlanta at the end of 2012
“There is also a possibility that there will be interest rate cuts at the end of 2012,” “I don't think there will be interest rate cuts until mid-2012,” “there will be no recession,” and “if inflation expectations rise, it is necessary to respond.”

There is also a temperature difference between raising rice interest rates and “ending” the probability that the next one will be postponed
There is a large possibility that the US Federal Reserve (Fed) will forego interest rate hikes at the next US Federal Open Market Committee (FOMC) to be held from 10/31 to 11/1. Chairman Powell set a precautionary line in his speech on the 19th saying that interest rate hikes were not over, but there is a temperature difference between how the market and the Fed look at it.

US MMF asset balances declined sharply, a drastic drop since the week of the collapse of Lehman Brothers
US money market fund (MMF) asset balances have declined for 2 consecutive weeks. The company withdrew funds in order to pay income tax to the US government. The tax payment deadline had been postponed until the 16th for some taxpayers. Approximately 98.8 billion dollars flowed out of the MMF in the week ending the 18th. The outflow amount was the largest since the week when Lehman Brothers Holdings went bankrupt in 2008/9 and financial unease spread to markets around the world.

Bank of Japan warns against risk of rising interest rates The financial system is “stable as a whole”
On the 20th, the Bank of Japan published the “Financial System Report,” which is compiled every six months. Japan's financial system was evaluated as “maintaining stability as a whole.” After analyzing the impact of rising interest rates on earnings as having “tolerable loss absorption capacity,” it sounded an alarm for domestic financial institutions that “careful risk management is required” more than before.

Negotiators from the American Auto Workers Union who continue to strike as they advance toward an interim agreement with GM
rice $General Motors (GM.US)$and the United Auto Workers Union (UAW) are making progress toward a provisional agreement. The UAW negotiation executive made it clear. If an agreement is reached, it is expected that the large-scale strike that has been going on for over a month will come to an end.

The yen temporarily rose, and 1 dollar is just around 150 yen - vigilance against intervention continues
In the foreign exchange market on the 20th, the yen temporarily surged just before 150 yen against the dollar. This level is close to the level at which the Japanese authorities intervened to support the yen last fall. The yen remained at a level slightly below 150 yen throughout this week. There is a mixture of materials such as a sense of caution about intervention by the Japanese currency authorities, the high level of Japan-US interest rate differences, and the risk of the situation in the Middle East, etc., and developments where it is difficult to determine a sense of direction continue.

Continuing Tenacious Mitigation While Responding Agility, Uncertainty Is Extremely High - Bank of Japan Governor
Bank of Japan Governor Ueda Kazuo stated on the 20th that “uncertainty surrounding the internal and external economy and financial markets is extremely high,” and once again indicated the policy of continuing the current monetary easing policy. Governor Ueda stated that “we will continue monetary easing tenaciously while responding flexibly according to the economic/price/financial situation,” and then stated, “We will aim to sustainably and stably achieve the price stability target of 2% in a form accompanied by an increase in wages.”

Tesla's EV charging standards focus on Asian power grid connections are also in the spotlight
$Toyota Motor (7203.JP)$Is the US fast charging standard in North America $Tesla (TSLA.US)$The “NACS” method will be adopted from 2025. The situation is certain that the Tesla model will become the de facto standard in North America. There is also a view that Tesla holds data on charging. The focus will be on whether it will expand to Asia from now on.

-Moomoo News Sherry, Calvin
Distribution source: Bloomberg, Nihon Keizai Shimbun, Jiji Press, MINKABU