This week's market focus is on the momentum of the rise in US interest rates and the differing movements of Japanese and US equities. Earnings announcements from major US semiconductor companies and the Jackson Hole symposium are emerging as key themes.
The key points of Mizuho Weekly VIEW are market expectations over whether the rise in US interest rates will be curbed and the prospect that Japanese and US equities will follow different paths. As technical considerations, it has been noted that the overlap between developments in US market interest rates and the timing of corporate earnings announcements could cause investor sentiment to oscillate between heightened and easing caution.
This week's focus is said to center on two events: earnings announcements from major US semiconductor companies and the Jackson Hole symposium. These events could affect market volatility. On the US technical front, there is also a view that the market remains in a “perfect order” configuration, although uncertainty over interest-rate trends remains a risk factor.
As for Japanese equities, it has been noted that, in the short term, the 25-day moving average may fall below the 75-day moving average. The outlook for US equities, by contrast, may fluctuate depending on the impact of earnings and interest rates, and the report concludes that future developments will depend on the earnings announcements and the outcome of the symposium.
In subsequent updates, the earnings results of major US semiconductor companies and comments from key figures at the Jackson Hole symposium are expected to become more concrete market factors. Attention is expected to focus on the divergence between Japanese and US markets and the direction of interest rates.