Outlook for the stock market
2022-09-26
■U.S. Stocks Wary of continued weakness in stock market
■European Stocks? Sense of undervaluation is expected to fade over time
S&P500 and INDEXDJX continue to fall sharply. Outlook for Federal Open Market Committee (FOMC) members on their policy rate, with the prospect of a rate hike to around 4.5% by the end of the year and policy rates are expected to remain high from next year onward, fears of recession resurfaced. INDEXDJX fell consecutively for 4 business days through the weekend, hitting a new low est price for the year and falling below $30,000.
The continued strength of the U.S. dollar will put pressure on global companies with a high proportion of exports overseas, and the outlook for corporate performance will become more uncertain as monetary policy tightens. With long-term interest rates in the U.S. rising, investing in stocks is likely to become less attractive and investor sentiment is unlikely to improve, caution about a continued downward trend in stock prices is still needed in the near term. This week, please take care of the important announcements from FRB and financial results reports from major retail and semiconductor companies.
Stoxx Europe 600 Index continues to fall. In addition to the U.S., U.K. and Swiss central banks decided to raise interest rates as well. Also compared to the previous month, the PMIs of Eurozone has degraded in September. Leading to a increased recession fears so that stock prices declined over the weekend. Both the Stock Europe 600 Index and the German DAX Index have hitted the lowest price this year.
The U.K. government planned to cut taxes on a large scale and increase government bonds didn't improve investor sentiment due to warnings of deteriorating public finances. Concerns about long-term monetary tightening, based on the idea that high inflation will persist, were cited as a factor in the stock market decline. The undervaluation of European stocks that is occurring now may diminish over time as European companies lower their earnings forecasts.
■European Stocks? Sense of undervaluation is expected to fade over time
S&P500 and INDEXDJX continue to fall sharply. Outlook for Federal Open Market Committee (FOMC) members on their policy rate, with the prospect of a rate hike to around 4.5% by the end of the year and policy rates are expected to remain high from next year onward, fears of recession resurfaced. INDEXDJX fell consecutively for 4 business days through the weekend, hitting a new low est price for the year and falling below $30,000.
The continued strength of the U.S. dollar will put pressure on global companies with a high proportion of exports overseas, and the outlook for corporate performance will become more uncertain as monetary policy tightens. With long-term interest rates in the U.S. rising, investing in stocks is likely to become less attractive and investor sentiment is unlikely to improve, caution about a continued downward trend in stock prices is still needed in the near term. This week, please take care of the important announcements from FRB and financial results reports from major retail and semiconductor companies.
Stoxx Europe 600 Index continues to fall. In addition to the U.S., U.K. and Swiss central banks decided to raise interest rates as well. Also compared to the previous month, the PMIs of Eurozone has degraded in September. Leading to a increased recession fears so that stock prices declined over the weekend. Both the Stock Europe 600 Index and the German DAX Index have hitted the lowest price this year.
The U.K. government planned to cut taxes on a large scale and increase government bonds didn't improve investor sentiment due to warnings of deteriorating public finances. Concerns about long-term monetary tightening, based on the idea that high inflation will persist, were cited as a factor in the stock market decline. The undervaluation of European stocks that is occurring now may diminish over time as European companies lower their earnings forecasts.