Tokyo market is closed; will the risk-on rally continue!? "Key points and events calendar for January 13"

Last week was a roller-coaster market with sharp rises and falls.

It is worth watching whether the risk-on mood will continue this week.

Today is Coming of Age Day, and the Tokyo market is closed.

In Western markets, we are watching to see if the risk-on mood will continue, and whether U.S.-China relations or Middle East risks will flare up again.

◎ Today's Points of Focus

1) U.S.-China Relations

Starting today, Vice Premier Liu will visit the United States to sign the first-stage agreement of the U.S.-China negotiations.

U.S.-China relations are settled for now after the first-stage agreement, but depending on the contents of the second-stage talks, a resumption of the U.S.-China tariff war cannot be ruled out, so I want to keep an eye on information regarding the negotiations.

Also, in the weekend’s Taiwan presidential election, pro-China candidates were defeated by the pro-Democrat camp in a landslide.

For China, Hong Kong, Xinjiang Uyghur Autonomous Region, and Taiwan are issues it does not want the United States to touch, but in terms of Hong Kong and Xinjiang, human rights laws have been passed by the U.S. Congress, and regarding Taiwan, the United States treats it as a sovereign country by exporting weapons, among other actions.

The United States has sent congratulations to Tsai Ing-wen on her presidential victory.

Given this, there is concern about potential deterioration in U.S.-China relations.

2) Middle East Risks

Risk-off sentiment has declined as the United States did not choose a military option against Iran.

Middle East risks have eased and stability has returned, but Canada and Ukraine have expressed regret over the downed Ukraine International Airlines flight involving Iran.

Within Iran, demonstrations have also occurred against the leadership.

Iranian authorities temporarily detained the British ambassador, while Britain has expressed regret to Iran.

In Iraq, rocket attacks on U.S. military bases have continued.

So far there have been no reported injuries to U.S. personnel, but Iraqi soldiers have sustained injuries.

There are still sparks of Middle East risk remaining, so caution is required.

◎ Today's Event Schedule

Monday, January 13

18:30: GBP: UK GDP

Tuesday, January 14

00:00: USD: Federal Reserve President Rosengren’s remarks

02:40: USD: Federal Reserve Bank of Atlanta President Bostic’s remarks

04:00: USD: Monthly Budget Statement