Today’s Outlook:
• The S&P 500 and Nasdaq wrapped up a strong week with record closes on Friday (the first day of March), underpinned by slump in Treasury yields and an Nvidia-led surge in chip stocks as the latest quarterly results from tech continue to point to accelerating artificial intelligence demand. The Dow Jones Industrial Average was up 98 points, or 0.3%, S&P 500 advanced for the second consecutive day by gaining 0.8%, while NASDAQ Composite led the gains by jumping 1.1% to a record 16,274.94. MSCI’s index of stocks around the world rose 5.81 points, or 0.76%, to 767.09 and hit a record high.
• Fed governor Christopher Waller said Friday he would like to see the U.S. central bank shift its holdings more toward short-term Treasuries, sending the yield on the 2-year Treasury 11 basis points lower to 4.54%. Data on Friday showing consumer sentiment unexpectedly slipped in February, and manufacturing activity deteriorating further into contraction territory boosted hopes for an earlier rate cut in further blow to Treasury yields to boost growth sectors including tech. The Institute for Supply Management (ISM) said its manufacturing PMI fell to 47.8 last month from 49.1 in January, the 16th straight month that the PMI remained below 50, considered as an immersed in contraction territory. The University of Michigan surveys of consumers showed all three measures for sentiment, current conditions and consumer expectations remain to appear pessimistic in the next 6 months.
• EUROPEAN & ASIAN MARKETS: However, MSCI’s gauge of stocks across the globe rose 5.81 points, or 0.76%, to 767.09 and hit a record high. The STOXX 600 index closed up 0.6% after Eurostat figures published showed inflation across the 20-nation euro zone eased to 2.6% in February from 2.8% a month earlier. Global factory surveys showed manufacturing output had continued to fall in both Europe and Asia. And in Asia, Japan’s Nikkei index jumped 1.9% to hit a fresh all-time high, extending a surge of 7.9% the previous month when it breached levels last seen in 1989.
• OTHER FINANCIAL INSTRUMENTS: Bond yields fell sharply including two-year yields’ biggest daily decline since the end of January after the manufacturing data and Waller’s suggestion of the need for more shorter-dated Treasuries. The 2-year note yield, which typically moves in step with interest rate expectations, fell 11.1 basis points to 4.5354%, from 4.646% late on Thursday. The yield on benchmark U.S. 10-year notes fell 6.6 basis points to 4.186%, from 4.252% while the 30-year bond yield fell 4.7 basis points to 4.3285% from 4.375% late on Thursday. In the FOREIGN EXCHANGE market, the dollar fell against the euro on weaker-than-expected U.S. economic data but gained against the Japanese yen after Bank of Japan governor Kazuo Ueda said it was too soon to declare victory on inflation. The dollar index, which measures the greenback against a basket of major currencies, fell 0.2% at 103.91, with the euro up 0.28% at $1.0833.
• COMMODITIES: OIL prices settled higher and posted weekly gains as traders awaited an OPEC+ decision on supply agreements for the second quarter while they weighed U.S., European and Chinese economic data. US crude settled up 2.2% at $79.97 a barrel and Brent finished at $83.55 per barrel, up 2% on the day. In metals, gold started the month on a positive note, with prices rising to a two-month high the muted economic data.Spot gold added 1.97% to $2,083.41 an ounce.
• JCI has tested the MA20 Support several times which is equivalent to the lower channel Support location of the uptrend created since the bottom of last November. Fortunately, often times the Closing position is still always safely controlled above the crucial Support limit, which is currently located in the 7280-7300 area. NHKSI RESEARCH should remind investors/traders to maintain a WAIT & SEE attitude for longer, and later more closely monitor the direction of the JCI breakout chosen this week, then adjust trading decisions related to their respective portfolio positions.
Company News
• ADMR: Recorded 2023 Profit of USD441 Million
• POWR: Earned a 2023 Profit of USD76.97 Million
• JPFA: 2023 Profit Slashed 34 Percent
Domestic & Global News
• Bulog: 300,000 Tons of Imported Rice from Thailand and Pakistan to Enter Indonesia This Month
• Good News, Japan to Announce Successful Deflation
Download full report HERE.
