The central banks of Japan, the US and Europe are expected to hold meetings next week, with US September core PCE and earnings from major AI companies including Alphabet, Microsoft and Amazon set to mark an inflection point for the market.
Next week will be an unusual one, with the central banks of Japan, the US and Europe scheduled to hold policy meetings in succession. The schedule is the US FOMC on the 27th-28th, the ECB on the 29th and the Bank of Japan on the 29th-30th, with all three expected to leave policy unchanged. The market will assess the prospects for an additional rate hike in December while focusing on US September core PCE and earnings from major AI companies.
US stocks fell broadly across the major indices on the 23rd, while North Sea Brent crude rose. Energy stocks were firm on higher oil prices, while cyclical and financial stocks came under selling pressure.
The earnings outlook and capital expenditure plans of the three major hyperscalers, amid expanding AI investment, will be key factors influencing semiconductor stocks. Earnings announcements from Japanese semiconductor-related companies are also coming in succession, and FANUC's upward earnings revision could affect related stocks.
Tensions in the Middle East and developments following the US midterm elections are attracting market attention as risk factors that could affect monetary policy decisions in December. The projected range for Japanese stocks is a high of ¥65,000 and a low of ¥61,500, with individual stock picking expected to be the main focus.