Market Snapshot – Nikkei Moves to Highs, Market Awaits US Data

Nikkei Hits Highs

The Japanese stock markets moved on to new highs as the earnings data are expected to trickle in one by one and the markets expect the earnings from the major companies to be good. This rally can be considered to be part of the global rally in the stock markets with the US stock indices making all time highs almost on a daily basis. We had also mentioned that with the major countries at the end of the rate cut cycle and beginning their rate hike cycle, this is likely to keep the respective stock markets high and this would in turn lead to a global stock market rally in the short and medium term as well. The gold prices are expected to be under pressure during this period.

US CPI Data Awaited

The market awaits some important pieces of data from the US later in the day today as the CPI and retail sales data would be released later on in the day. This piece of data would be noted closely by the markets, especially the inflation data, as they are likely to have a strong bearing on the rate hike decision from the Fed. The Fed would ideally like to see some strong data so that it makes their decision easier but so far, the incoming data has been choppy and that is an added reason why this piece of data would be important for the market.