Impact on Earnings from Market Volatility and Trading Sluggishness

「At Nissan Securities as well, amid sluggish trading across the market, the number of gold standard futures contracts traded fell to 168,000, or 42.2% of the previous year, and total trading value declined to ¥5.6844 trillion, or 93.0%.」

「Our Group's business is significantly affected by trends in financial and commodity markets and economic conditions both in Japan and around the world. Trading may stagnate or decline not only because of purely economic factors, but also because of war, terrorism, natural disasters and other events. If trading stagnation or decline persists, it may affect earnings beyond management's forecasts.」

「Meanwhile, concerns about the economic outlook intensified as resource prices surged against a backdrop of geopolitical risks, including U.S. and Israeli military operations against Iran that began during the month.」

「Amid concerns over a recession caused by US tariff policy and apprehension over US-China tensions, prices fell sharply in early April, reaching lows in the $36,000 range.」

「Geopolitical risks around the world, including the prolonged and intensifying wars in Europe and the Middle East, conflicts of interest between countries in Asia, and territorial disputes, are increasingly rising and expanding, making the outlook for politics and the economy even more uncertain.」

「In commodity markets, NY gold futures moved largely sideways within a range through June, but entered an upward trend from July onward against the backdrop of rising geopolitical risks in the Middle East and expectations that the Federal Reserve would cut interest rates in September amid concerns over worsening US employment conditions. When the Federal Reserve actually decided to cut rates by 0.5% in September, gold prices moved still higher.」

「In commodity markets, NY gold futures remained on a downward trend through October as US long-term interest rates continued to rise against the backdrop of strong US economic data. From October onward, they moved higher through December as buying flowed into gold as a safe-haven asset amid the military conflict between Israel and the Islamist organization Hamas, and expectations strengthened that the Federal Reserve had ended its rate-hiking cycle.」

「In commodity markets, NY gold futures fell to nearly $1,900 by the end of June as US long-term interest rates rose against the backdrop of strong US economic data. They subsequently exceeded $2,000 at the end of July as expectations spread that the Federal Reserve was nearing the end of its rate-hiking cycle, but then declined amid concerns that the strength of the US economy would prolong the rate-hiking cycle, falling below $1,900 in late September.」

「In commodity markets, NY gold futures remained firm through early May as expectations grew that the Federal Reserve would halt interest-rate hikes ahead of schedule, but turned soft toward the end of June as US long-term interest rates rose against the backdrop of strong US economic indicators. NY crude oil futures traded in the $80 range in early April, supported by an announcement from some OPEC+ oil-producing countries of voluntary production cuts, but fell below $70 in early May amid concerns over weaker demand in the United States and China. They subsequently traded in a range around $70.」

「Geopolitical risks have been intensifying around the world, including concerns over military clashes between major powers in Europe and Asia and political instability and prolonged conflicts in developing regions. Amid unprecedented tensions, rising resource and energy prices have begun to have a pronounced impact on consumer life through higher prices.」

「In commodity markets, NY gold futures rose above $2,000 in April as safe-haven buying emerged amid concerns that Russia's military invasion of Ukraine would be prolonged. They subsequently remained on a declining trend through October amid rising US long-term interest rates and a stronger dollar. From November onward, they moved higher as the dollar weakened against expectations that the Federal Reserve would slow the pace of interest-rate hikes.」

「In commodity markets, NY gold futures rose above $2,000 in April as safe-haven buying emerged amid concerns that Russia's military invasion of Ukraine would be prolonged. They subsequently remained generally soft amid rising US long-term interest rates and a stronger dollar, falling below $1,700 in July.」

「In commodity markets, NY gold futures rose to nearly $2,000 in mid-April as safe-haven buying emerged amid concerns that Russia's military invasion of Ukraine would be prolonged. They subsequently declined amid rising US long-term interest rates and a stronger dollar, and after falling below $1,900, remained capped within a range of approximately $1,800 to $1,900.」

「Against this backdrop, nationwide market trading volume was 31.536 million contracts (108.1% of the year-earlier period).」

「In the commodity-related business, the commodity futures market remained sluggish. In addition, as the company shifted its primary sales focus to the Click-related business, operating revenue was ¥287 million (down 43.4% year on year),」

「In commodity markets, gold continued to rise as demand for it as a safe-haven asset increased amid concerns over the spread of the novel coronavirus and the Federal Reserve implemented large-scale monetary easing. Crude oil plunged in April because of a lack of storage capacity in the United States as energy demand declined, then recovered after OPEC+ began coordinated production cuts. Against this backdrop, nationwide market trading volume was 9.237 million contracts (96.3% of the year-earlier period).」

「In commodity markets, gold rose sharply after September, having previously risen against the backdrop of US interest-rate cuts and intensifying US-China trade tensions, and then remained broadly flat. From January onward, it became highly volatile, first surging as safe-haven buying emerged amid the outbreak of the novel coronavirus and then plunging as investors moved to raise cash. Crude oil remained broadly range-bound through February, but plunged in March amid the breakdown of OPEC+ talks on coordinated production cuts and concerns that the novel coronavirus would reduce energy demand.」

「In commodity markets, gold rose sharply from mid-June onward against the backdrop of US interest-rate cuts, intensifying US-China trade tensions and heightened geopolitical risks in the Middle East, but moved within a range without clear direction from September onward. Crude oil declined through late August on expectations that US-China trade tensions would reduce energy demand, but rose toward the end of December as OPEC+ continued coordinated production cuts. Against this backdrop, nationwide market trading volume was 29.182 million contracts (87.9% of the year-earlier period).」

「In commodity markets, gold lacked direction and remained within a range through early June, but rose sharply from mid-June onward against the backdrop of US interest-rate cuts, intensifying US-China trade tensions and heightened geopolitical risks in the Middle East. Crude oil peaked in late April and then declined on expectations that US-China trade tensions would reduce energy demand and amid yen appreciation. Against this backdrop, nationwide market trading volume was 21.337 million contracts (94.6% of the year-earlier period).」

「In commodity markets, gold lacked direction and remained within a range through early June, but rose sharply from mid-June onward amid expectations of US interest-rate cuts and heightened tensions in the Middle East. Crude oil peaked in late April and then declined on expectations that US-China trade tensions would reduce demand, but recovered after reaching a low in early June amid expectations that OPEC-led coordinated production cuts would continue. Against this backdrop, nationwide market trading volume was 9.590 million contracts (80.4% of the year-earlier period).」

「If trading stagnation or decline persists, it may affect earnings beyond management's forecasts.」

「Against this backdrop, nationwide market trading volume was 33.188 million contracts (90.1% of the year-earlier period).」

「Against this backdrop, nationwide market trading volume was 22.552 million contracts (89.7% of the year-earlier period).」

「Our Group's business is significantly affected by trends in financial and commodity markets and economic conditions both in Japan and around the world. Trading may stagnate or decline not only because of purely economic factors, but also because of war, terrorism, natural disasters and other events. If trading stagnation or decline persists, it may affect earnings beyond management's forecasts.」

「Against this backdrop, nationwide market trading volume was 36.847 million contracts (93.5% of the year-earlier period).」

「Against this backdrop, nationwide market trading volume was 25.144 million contracts (94.1% of the year-earlier period).」

「Although coordinated production cuts were seen globally in crude oil, prices were on a declining trend due to increased production by the United States and Russia. Grain markets remained stagnant amid expanding production and export capacity in South America.」

「Volatility, which indicates the degree of price movements, also declined, and trading has been sluggish.」

「In commodity markets, international precious-metals prices fell sharply as expectations of US interest-rate hikes led to a stronger dollar, while oil prices rose following an agreement among oil-producing countries, led by OPEC, to cut production. Grain prices remained broadly flat after the US harvest was completed.」

「In commodity markets, precious metals rose on financial uncertainty caused by the UK's withdrawal from the EU, but turned lower as US interest-rate hikes came into focus. Crude oil declined amid perceptions of oversupply, but rebounded as oil-producing countries strengthened their coordination toward production adjustments. Grain prices plunged on expectations of a record harvest in the United States.」

「Our Group's business is significantly affected by trends in financial and commodity markets and economic conditions both in Japan and around the world. Trading may stagnate or decline not only because of purely economic factors, but also because of war, terrorism, natural disasters and other events. If trading stagnation or decline persists, it may affect earnings beyond management's forecasts.」