[2021.6.10] Reflection on yesterday in the market and today's insights

Stock price: The Nikkei Stock Average fell yesterday by 102.76 points. The short-selling ratio is increasing at 40.9%.

Yesterday's U.S. stocks declined: Dow Jones Industrial Average by 152.68 points, S&P 500 by 7.71 points, and Nasdaq by 13.16 points. Today, the U.S. Consumer Price Index is to be released. Recently, market attention has been on inflation concerns, making the CPI a key indicator. Therefore, U.S. stock position adjustments are believed to have occurred. The last CPI year-on-year was up 4.2%. Exceeding market expectations of +3.6%, this raised expectations for early tapering in the U.S., causing stock prices to fall and the dollar to strengthen. Last time, commodities rose, and inflation followed accordingly, which is unlikely to be otherwise. After the last CPI release, commodity prices have become less prone to rise, so the chances of a significantly higher CPI this time are low. Around events, there is a high likelihood of large fluctuations, so it might be best to wait and see.