2H22 Consensus Profit Projection Too High. Inflation and high interest rates, as well as the appreciation of the USD, made a number of analysts revise their 3Q22 and 4Q22 corporate profit projections. The strengthening of USD depresses the margins of export-oriented companies. Most companies in the S&P 500 index, will release their 2Q22 financial results after mid-July. Previously, analysts had revised down some of their 2Q22 profit forecasts in recent weeks. Investor concerns over falling earnings sent Wall Street back lower yesterday, with the Nasdaq down more than 4%.

Global central banks adopted an aggressive Hawkish stance, a concern that had disrupted the JCI movement in the green zone since the beginning of trading, although it ended up closing 43 points higher to the level of 7,050. The Swiss National Bank raised interest rates for the first time in 15 years. Meanwhile, the Bank of England raised its benchmark interest rate again, for the fifth time in a row this year, to 1.25% or the highest level since the global financial crisis in 2009. Ahead of the BI RDG next week, NHKSI Research projects the JCI to move upward today, within a range of 7,000-7,260.

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