In the overseas market after this, the nervous market is likely to continue toward the weekend. There are few major economic indicator announcements that can be used as clues today. Eurozone consumer confidence and breaking news (May) will be announced.
While the central banks of each country took a monetary tightening stance in response to inflation, the stock market is becoming easier to sell. It is symbolized by the fact that Apple stocks have fallen by more than 20% from the high price. The outlook for retailers’ earnings released this week was a bit pessimistic. There seems to be concern that inflation and monetary tightening will stiffen consumers’ wallets.
The United Kingdom, the United States, etc. have already started raising interest rates, and the current focus is on the ECB’s July interest rate hike. The ECB has a constitution in which it is difficult to gather the opinions of the central bank governors due to the disparity in the economic conditions of the North and South countries, but since all countries are suffering from rising inflation, this monetary tightening seems to be able to start smoothly.
As the stock price depreciation shows, this week’s market is in a situation where a sense of caution about the future economic slowdown and stagflation is being pushed to the fore. Even in the exchange market, it seems that the point of interest is shifting from the interest rate difference so far to the risk aversion / preference market that looks at economic trends.
In Asian time, it was good news that China lowered the 5-year LPR (loan prime rate) more than expected. Hong Kong and Shanghai stocks are doing well. Buying is predominant in the Nikkei 225, US stock futures and after-hours trading. I would like to pay attention to whether this mood will continue in the European and US markets.
This week’s exchange is consistently rewinding and adjusting mode. It is assumed that USD sales will continue.