The Tokyo stock market on April 30 is expected to see continued profit-taking centered on major stocks, with the Nikkei average likely to fall sharply for a second consecutive session. Rushed profit-taking in AI and semiconductor-related high-priced stocks, which have led the market until now, is likely to weigh on the overall index. In the European stock markets the previous day, major stock indices such as Germany's DAX, France's CAC 40, and the UK's FTSE 100 were generally weak. The DAX fell for an eighth consecutive session, showing strong signs of correction. With no progress seen in negotiations between the U.S. and Iran toward ending hostilities in the Middle East, risk-averse attitudes toward investment money have intensified. Additionally, Deutsche Bank sold off after its earnings announcement, as its capital ratio fell short of consensus, which also dampened market sentiment. In the U.S. stock market, while many tech stocks showed resilience by absorbing profit-taking, there was a strong tendency for cyclical stocks to decline, and the NY Dow fell for a fifth consecutive session. The Dow broke below its 5-day moving average with a bearish candlestick, and with the moving average also turning downward, there is a mood of caution regarding a near-term trend reversal. The FOMC results announced on this day decided to keep the policy rate unchanged at 3.50% to 3.75%. Fed Chairman Powell stated that he will remain as a Fed board member for the time being after his term ends on May 15. Uncertainty remains strong regarding the opening of the Strait of Hormuz, and on this day, WTI crude oil futures surged, rising to nearly 107 dollars per barrel on a closing basis, dampening investor sentiment. Earnings announced after the close by Alphabet and Microsoft both exceeded market expectations. However, in after-hours trading, while Alphabet was bought up sharply, Microsoft faced selling pressure, showing contrasting fortunes. The Tokyo market is likely to remain under selling pressure throughout the day as the correction mood intensifies in European and U.S. stock markets. The foreign exchange market has moved rapidly toward yen weakness, but whether this will work as a positive factor is uncertain.

In the U.S. stock market on the 29th, the NY Dow average fell 280.12 dollars to 48,861.81 dollars, down for a fifth consecutive session. The Nasdaq Composite Index rose 9.44 points to 24,673.24.

On the schedule for today: March industrial production preliminary report, March commercial statistics, March automobile export results, March construction machinery shipments, March housing starts statistics, April consumer sentiment survey, and others. Overseas: ECB Governing Council results announcement, Bank of England Monetary Policy Committee results announcement, U.S. real GDP preliminary report for January-March, U.S. personal income, personal consumption expenditures, and PCE deflator for March, and others.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.