Will it carry over the risk-off trend from last weekend!? ~ Highlights and schedule for December 17 ~

The news that flowed out over the weekend, Johnson & Johnson's baby powder issue. It seems likely to have a significant impact on U.S. stocks. Today is the start of a new week and just before the FOMC meeting. When the week changes, the flow can change. It looks like today will be a day to assess the week's momentum.

◎ Today's Highlights

1)European Issues

Italy has slightly revised its budget proposal. It remains to be seen how the European Commission will interpret this and whether it will avoid sanctions. France is also drawing more attention. The PMI released last week fell below the baseline of 50, recording 49.5. If Italy faces sanctions, France should be treated the same, arguing that France is also violating EU fiscal discipline. Not only fiscal issues, but protests in France continue, and President Macron's approval ratings are declining. Marine Le Pen, who contested the 2017 presidential election, has steadily increased her support and is said to now surpass Macron's approval rating. If France faces a dissolution election, the EU could see risk-off flow return. This is worth watching closely.

2)Risk-Off

Over the weekend, weak economic indicators in Europe and issues in Italy and France were interpreted as risks, creating a risk-off mood. In the U.S., all three major stock indices fell, and a risk-off flow is underway. As the new week begins, it remains to be seen whether this trend will continue or change, and I will be watching closely.

◎ Today's Event Schedule

12/17 (Monday)

16:00 TRY Turkish unemployment rate and industrial production
19:00 EUREuro area HICP (Consumer Price Index)
22:30 USD New York Fed Manufacturing Index

12/18 (Tuesday)

09:30 AUDRBA Board Meeting Minutes・Mid-year Economic and Fiscal Outlook