After the Christmas holidays, will stock prices rebound!? ~ Focus points and schedule for December 26 ~

Yesterday, amid thin trading with partial (time-shortened) trading, the Nikkei Stock Average sharply fell below 20,000 yen. Today, even though it is after Christmas holidays, market participants are few and a dull market is anticipated. In some countries, offices are closed for Boxing Day... spreads may widen and sudden price movements may occur, so I want to be careful as abnormal movements can happen. Also, trading hours vary by broker and securities company, so confirming trading hours is important.

◎ Today’s Highlights

1)Stock price plunge

Global stock prices continue to decline. The epicenter feels like the U.S. stock market, but globally risk has become more concentrated, leading to stock price declines. Also, participation and trading volume are low due to the holidays, which is one factor in the decline. Today, as the market reopens, I’m watching how it digests the information.

Recession again!? Thinking about the factors behind the ongoing slide in stock prices

2)Trump Administration

Resignation of Defense Secretary James Mattis. Rumors of dismissals of Powell, Chair of the Federal Reserve, and Mnuchin, Treasury Secretary, are spreading, causing concerns about personnel. Also, with a budget for building the wall in Mexico, the U.S. budget deadline has passed. Some government agencies have been shut since the 22nd. I want to focus on the budget plan and the Trump administration.

3)Kuroda, Governor of the Bank of Japan, remarks

As global stock prices remain weak, the Nikkei average has fallen below 20,000 yen. Also, risk-off sentiment has driven 10-year Japanese government bond yields temporarily to 0%, raising concerns about long-term interest rates. I’m curious how Governor Kuroda will comment on this area.

◎ Today’s Event Schedule

12/26 (Wednesday)

08:50 JPY Monetary Policy Meeting Minutes
13:00 JPYGovernor Kuroda’s remarks

12/27 (Thursday)

00:00 USD Richmond Fed Manufacturing Index
03:00 USD 5-year Bond Auction