Ahead of the release of the US August PPI and September CPI, stock market activity is expected to vary depending on rate expectations. Oracle is also due to report earnings this week, and developments in risk assets are likely to depend on the results.
Japanese stocks remained under pressure last week, mainly due to movements in Japanese and US interest rates, before narrowing their losses on buying toward the weekend. Two US inflation indexes are due to be released this week, and inflation trends will be a key factor determining the market’s direction.
Oracle is scheduled to report earnings on the morning of the 11th Japan time, making the performance of the major IT company another focus for the market. Expectations for Japanese and US interest rates are once again likely to be the market’s focal point, with rate-hike expectations expected to strengthen or weaken depending on the inflation data.