Bank Stress Tests Released on Thursday. While Wall Street was on holiday to commemorate Juneteenth, European markets rose earlier in the week. European markets rebounded, after facing negative sentiment on interest rate hikes by three central banks, the Fed, Swiss National Bank and Bank of England. Meanwhile, the US Fed will release the results of its annual bank health check on Thursday. For the record, as many as 34 US banks with assets of more than USD 100 billion undergo stress tests in 2022. However, the scenario of the Fed’s stress tests this year is before the Russian invasion of Ukraine, and the prospect of hyper-inflation.

With high inflation trend, investors are interested in consumer non-cyclicals stocks which are relatively resilient, leading sectoral gains up to 1.8% earlier in the week. Then, followed by the healthcare sector which rose 1.16% supported by a number of current health issues. JCI volatility yesterday happened as investors began to observe the narrowing of the interest rate disparity between BI and the Fed. Amid the wait and see attitude of investors ahead of the results of the BI RDG, NHKSI Research projects that the JCI will move upward in the range of 6,850 to 7,150.

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