This week's points
Japanese stocks are expected to continue to fall this week. While early interest rate cut observations in the US recede and uncertainty about the future of monetary policy is being recognized, downward pressure is likely to be applied to Japanese stocks. The situation in the Middle East, which has become even more tense, seems to be perceived as bad news. Also, economic indicators that have a large impact on monetary policy at home and abroad will be announced. If the US price index rises or if real wages in Japan continue to decline, investor sentiment will deteriorate and the market price is likely to weigh on. Currently, speculations are mixed over the timing and number of interest rate hikes in the US,Economic indicatorsYaMessage from the central bankIt seems that long-term interest rates and exchange rates will be greatly stimulated.
In the US, the March US Consumer Price Index (CPI) and Producer Price Index (PPI) are scheduled to be announced this week, drawing the interest of market participants. If CPI rises from expectations following January and February, the US financial authorities' cautious stance against early interest rate cuts will intensify, US interest rates will rise and US stocks will depreciate, and there is a possibility that selling pressure on Japanese stocks will also intensify. However, it is also conceivable that a slight gap with consensus has already been factored into the market price. Meanwhile, due to rising US interest rates...