Last quote by Masahiro Ichikawa
Masahiro Ichikawa quotes
Oil prices have fallen considerably on worries about the deal. That would pressure energy shares, and could hit the entire stock markets. Given their rally in recent days, it's no surprise to see some adjustment.
On the other hand, steady selling pressure around the 17,000 threshold is preventing a further advance and keeping the Nikkei in range.
All three Wall Street indexes rebounded overnight and crude oil prices are rising, and these are supportive factors for the market.
Yellen's remarks are likely to lift Japanese bond yields too, which should support financial shares. The Nikkei is likely to be supported by a weak yen as well on the whole.
Potential sources of turbulence that can impact broader risk sentiment over the long weekend is developments in the euro zone and volatile sterling.
The dollar pulled back slightly against the yen and this looks to have stalled the Nikkei's advance. As for the U.S. jobs report, the main points are if Wall Street can weather potentially upbeat data and how much the dollar can gain against the yen.
A strong jobs report would take the yen down further and bode well for the equity market. The key is how U.S. shares react to a strong report. If they come out relatively unscathed, the Nikkei could test fresh highs.
Low U.S. productivity growth could suggest the third quarter growth can't be fantastic. That in turn would mean the Fed will not need to raise rates.
The Nikkei initially took cues from overnight gains by U.S. shares and a rise in crude oil prices. But the market eventually ran out of factors to sustain the rise, with participants not inclined to build positions ahead of a key event like the U.S. jobs data release.
Upbeat U.S. stocks and the yen's weakening are continuing to push the Nikkei higher. The Bank of England may have gone against expectations by standing pat on monetary policy, but it did leave the door open for a rate cut in August and spared the markets from confusion.
We need to be aware of risk aversion if geopolitical risks show signs of spreading, but it won't negatively impact the financial system if such risks are geographically contained.
A while ago, everything looked so uncertain on Brexit. But now the UK looks set to have a new prime minister and negotiations may begin earlier. That is soothing investor sentiment.
Various commodities are rising even though there is no clear sign of sudden improvement in demand in each market. Their rally seems to be driven by hopes of stimulus.
The market's risk appetite seems to be coming back, or rather, its excessive pessimism is easing.
Despite the denial from Russia, oil prices were strong, pointing to strong market sentiment. I suspect there is speculation that oil producers will eventually agree on an output freeze.
Fears of Brexit have relegated the GBP to the bottom of the leader board.
The U.S. economic data has been soft especially in the manufacturing sector so the key is how much the services sector is holding out.