The Nasdaq led the US stock market gains by more than 1% on Monday trading (21/08/23), with shares of Nvidia jumping as investors were optimistic ahead of its earnings this week, and other technology-related stocks gaining; while the S&P500 and DJIA tend to be flat. The yield on 10-year Treasury notes hit highs last seen during the Great Financial Crisis in 2007 as investors looked warily toward a meeting of central bankers who convene on Thursday at Jackson Hole in Wyoming. Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on Friday, which will be closely monitored by market participants on whether the Fed will continue to keep interest rates high, which has led to high interest costs that weigh heavily on business and personal credit. China once again cut its benchmark interest rate for the second time in 3 months as the world’s second largest economy struggles to recover from the post-COVID pandemic slump. The Peoples Bank of China (PBOC) lowered the 1-year (short-term) lending rate to 3.45% from 3.55%. As is known, so far China’s economic recovery has been slow due to the property crisis, falling exports, and weak public spending power. Meanwhile, the PBOC kept the 5-year lending rate in place at 4.2%. From Europe, Germany reported PPI (July) at a deflationary rate of minus 6% yoy, exceeding expectations of a 5.1% deflation, and this producer-level inflation clearly dropped considerably from June’s position at 0.1%. Later today, Japan will announce the BOJ Core CPI which is predicted to flatten from its previous position at 3%. South Korea has released Consumer Confidence (August) at 103.1 which was above expectations but slightly down from the previous month. In the afternoon, Indonesia is scheduled to announce the Balance of Payments for Q2/2023, almost at the same time as the Eurozone will also announce the Current Account (June). Later in the evening, important data from the US such as Existing Home Sales will prove whether it is true that home sales in the US in July have started to stagnate around the 4.15 million mark.

Assessing the technical position of JCI, it seems that there is no positive catalyst that is strong enough to make JCI able to break through the first resistance, which is the MA10 & MA20 range, to return to the area above 6900. Thus, NHKSI RESEARCH still advises investors/traders to Wait & See in this Sideways consolidation period.

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