JCI forms a support level of 7,200 ahead of 4% BI 7DRRR in September. Energy rose 3.7%, leading sectoral gains for the week, as the European continent’s energy crisis pushed coal prices on the Newcastle ICE market to hit a new record level of USD461.07/Ton, or up nearly 6% after Gazprom stopped indefinitely supplying natural gas to the Eurozone. Although the JCI is moving within the range of 7,147-7,287, the weekly average is above the psychological 7,200 level. The JCI movement is in the midst of a Bloomberg survey which projects that BI will raise the BI 7DRRR in September by +25 bps to the level of 4.00% (vs. Aug. 3.75%). NHKSI Research sees that BI is starting to anticipate the impact of a significant increase of more than 30% of subsidized fuel prices on inflation in September 2022.
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