Worldwide stock prices plummet to record lows! "February 25 Highlights and Event Schedule"

Yesterday the Tokyo market was closed, but in the futures market the Nikkei-225 Futures fell to as low as 22,150 yen, a drop of more than 1,200 yen.

All eyes are on how the Tokyo market will move today.

Globally, the Dow Jones fell by 1,031 dollars, the second-largest decline after the Lehman Shock.

In Greece there was a record drop of 8.3%.

Originally they talked about delaying tax increases to the Lehman Shock level, but this time it is really a drop on the Lehman Shock scale.

Will any measures or fiscal policies be enacted? The government's moves are also in focus.

◎ Today's Points of Attention

1) Global Stock Sell-off

Stocks fell dramatically in the European and American markets yesterday.

Since the Tokyo market was closed yesterday, there is growing attention on how the Tokyo market will move today.

If the Nikkei falls below 22,000 yen, it feels like whale money might come in, but the correlation has broken down; even if stock prices are supported, it is unclear whether the yen will weaken or strengthen if stock prices drop.

Today, focus on stock prices, USD/JPY movements, and cross-currency movements.

2) COVID-19 (Novel Coronavirus)

From an outbreak centered in Asia, it is expanding globally.

Additionally, responses from countries around the world are becoming more stringent.

Many countries, including Australia and the United States, have issued travel advisories or imposed restrictions on travel and entry.

In Italy, infections are rapidly expanding and deaths are occurring.

Because of this, the EU is closely watching the freedom of movement (Schengen Area), but each member country appears to be handling borders independently.

As the movement of people and goods slows, supply chains erode and manufacturing is affected.

Moreover, as freedom of movement decreases, tourism and service industries are affected.

Today also looks to be another day where headlines related to COVID-19 attract attention.

3) Remarks by Officials

In the United States, the end of hidden QE is feared, which is said to be one of the reasons for the dollar strength and stock weakness.

Also, long-term yields in many countries are declining.

Expectations for further rate cuts are growing.

We should pay attention to remarks by officials.

◎ Today's Economic Event Schedule

Tuesday, February 25

16:00　EUR Germany GDP (revised)

17:00　EUR DeCos–Spain Central Bank President speaks

21:00　MXN Mexico GDP

23:00　USD U.S. Home Price Index

23:45　USD Kaplan Dallas Fed President speaks (2020 voting rights)

Wednesday, February 26

00:00　USD U.S. Consumer Confidence Index

02:15　CAD Lane BOC Deputy Governor speaks

05:00　USD Clarida Federal Reserve Vice Chair speaks