What will be the reaction of the US and UK markets after the holidays!? "Key points and event schedule for May 26"

Yesterday the market was quiet, and movement was limited in all currencies.

Today the UK and US markets are returning from holidays, and attention is on how they will react.

During the holidays, there were protests in Hong Kong, and with the US-China issues worsening, market reactions are under close watch.

Also, yesterday Japan lifted all states of emergency, and phased lifts by local governments have begun.

With the economic reopening from the lifting, will Japanese stocks rise or move back to their previous levels? There is concern.

◎ Today's Highlights

1) US-China Issues

China is holding its National People's Congress, drawing global attention.

In particular, around the highly watched National Security Law, protests in Hong Kong have intensified, and many countries including Taiwan, Canada, and Austria have issued criticisms, while the US is also criticizing and considering sanctions.

One focus of US sanctions is whether the US will revoke preferential treatments granted to Hong Kong (visa issuance, tariffs, etc.).

If revoked, Hong Kong’s advantage would disappear, causing Hong Kong stocks to fall sharply.

China has previously used Hong Kong Special Administrative Region to gain large profits.

This time, it appears China aims to suppress Hong Kong even at the cost of losing profits, so a deterioration in US-China tensions is expected.

Another point of attention is the United Kingdom’s movements.

The UK has shown signs of retreat along with Canada and Austria, but there are voices calling for sanctions against the former colonial power, the UK, just like the United States.

◎ Today's Event Schedule

Tuesday, May 26

15:00 EUR Germany GfK Consumer Confidence Index

18:00 GBP Hallen BoE External Director Speech

20:00 MXN Mexico GDP (Q1)

21:45 EUR Lane ECB Executive Board Member Speech

23:00 USD US Consumer Confidence Index

Wednesday, May 27

02:00 USD Kashkari Minneapolis Fed President Speech

06:00 CAD Poloz BoC Governor Speech

06:00 NZD RBNZ Financial Stability Report

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