Japan is a holiday weekend, be careful with risk management! "March 20 highlights and event schedule"

Yesterday, the ECB announced an emergency additional easing of 750 billion euros, bringing this year’s total easing to 1.1 trillion euros.

The United States has also announced many support measures, and stock prices have been buoyed, with European and American stocks holding firm.

The Bank of Japan is also purchasing 42.04 billion yen of ETFs and has doubled the purchase amount to implement the maximum ETF purchases.

Yesterday, the UK carried out an emergency rate cut.

Today I’m curious which country will implement emergency measures.

◎ Today's Points of Attention

1) Stock Prices

Today Japan is a holiday, and the Tokyo market is closed.

I don’t know how the Nikkei will move, but in the futures market it has recovered to around 17,000 yen.

European and American stock markets closed in positive territory yesterday.

Whether ECB’s additional easing measures, RBA’s additional rate cuts and QE implementation, and US fiscal policy are supporting stock prices, or whether this is a reflex rebound after a sharp decline, today’s stock price movement is in focus.

If prices remain firm today, we may be approaching a market bottom.

2) Dollar Strength

Dollar demand is rising worldwide, and the dollar is being bought.

With the dollar advancing, the Dollar Index, which measures the dollar’s value, has surged to around 103.

We are approaching levels not seen since 2003, and I’m watching whether we reach the next thresholds of 106.5 or 107.7.

As the dollar continues to strengthen, concerns about dollar strength control may arise, but given the current basis for dollar buying, I think this will continue for the time being.

I want to be mindful of where the dollar strength ends and where the dollar strength controls appear.

3) Weekend Risk Management

In recent weeks, the market has opened with wide gaps at the start of the week.

The United States has raised travel advisory to Level 4, and Italy has surpassed the number of deaths in China, indicating that the impact of the coronavirus continues to spread.

There may be further news over the weekend.

We may see a large gap up or down.

Conversely, there is a possibility of a large gap up when unwinding occurs.

I want to manage risk carefully.

◎ Today’s Event Schedule

Friday, March 20

18:00 EUR Lane Finland Central Bank President’s Remarks

21:30 CADCanada Retail Sales

23:00 USD US Existing Home Sales

Saturday, March 21

02:00 USD Baker Hughes Rig Count

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