Attention-grabbing PMIs released one after another in the U.S., U.K., and Europe; "Key points and event schedule for March 24"

Yesterday's Nikkei average remained firm, the Bank of Japan's ETF purchases reached a daily maximum of 200.4 billion yen, and J-REIT purchases totaled 4 billion yen.

While European and American stock prices moved lower, the Nikkei alone remained in positive territory.

Whether this trend will continue from today onward, or if there are no ETF purchases and only BOJ support, causing a decline, is something to watch.

Also, after the Fed announced it would make QE purchases open-ended (unlimited), the dollar briefly weakened, but thereafter dollar demand pushed the dollar higher again.

The euro strengthened as Germany decided on fiscal spending and postponed balanced budget concerns, leading to euro appreciation.

◎ Today's Highlights

1) PMI for each region

Today, PMI, which reflects business sentiment, will be released.

PMI (Purchasing Managers' Index) asks purchasing managers in sensitive sectors about future business prospects and converts the responses into an index.

An index value of 50 is the threshold between expansion and contraction; it is the average point for future economic outlook.

The PMI figures released today are expected to show deteriorating outlook and readings under 50, with the 40s anticipated across several regions.

If results come in even lower than already low expectations, stock prices may fall and risk-off sentiment could spread.

France

Manufacturing PMI (expected: 40) (previous: 49.8)
Services PMI (expected: 41.5) (previous: 52.5)
Composite PMI (expected: 38.0) (previous: 52.0)

Germany

Manufacturing PMI (expected: 40.0) (previous: 48.0)
Services PMI (expected: 42.5) (previous: 52.5)
Composite PMI (expected: 39.1) (previous: 50.7)

Eurozone

Manufacturing PMI (expected: 39.0) (previous: 49.2)
Services PMI (expected: 38.4) (previous: 52.6)
Composite PMI (expected: 37.8) (previous: 51.6)

United Kingdom

Manufacturing PMI (expected: 45.0) (previous: 51.7)
Services PMI (expected: 45.0) (previous: 53.2)
Composite PMI (expected: 45.1) (previous: 53.0)

United States

Manufacturing PMI (expected: 42.8) (previous: 50.7)
Services PMI (expected: 42.0) (previous: 49.4)
Composite PMI (expected: )(previous: 49.6)

2) Stock prices and gold prices

The Nikkei average seems to be supported by BOJ ETF purchases, but with the Tokyo Olympics nearly decided to be postponed, it remains to be seen whether the Nikkei can stay afloat and form a bottom.

European and American stocks are declining, but the declines are narrowing.

Markets seem to be gradually stabilizing, drawing growing attention.

Additionally, with gold prices rising again, it is thought that cash raised from panic selling may be slowly returning to the market.

We plan to monitor stock prices and gold prices to discern the bottom of the coronavirus shock.

◎ Today's Schedule of Events

Tuesday, March 24

G7 Foreign Ministers' Video Conference

17:15 EURFrance Manufacturing, Services, and Composite PMI (flash)

17:30 EURGermany Manufacturing, Services, and Composite PMI (flash)

18:00 EUREuro Area Manufacturing, Services, and Composite PMI (flash)

18:30 GBPUK Manufacturing, Services, and Composite PMI (flash)

22:45 USDUS Manufacturing, Services, and Composite PMI (flash)

23:00 USD New Home Sales

Wednesday, March 25

06:45 NZD NZ Trade Balance

08:50 JPYBOJ Summary of Opinions from Monetary Policy Meeting

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