The Tokyo stock market on May 20 is likely to remain dominated by sellers, with the Nikkei Stock Average expected to fall for a fifth consecutive day. Trading is anticipated to focus on defending the 60,000 yen threshold. European markets overnight showed mixed results, with Germany's DAX rising while France's CAC 40 edged lower, but the STOXX Europe 600 index, which represents overall European stock movements, posted a modest gain, reflecting a wait-and-see sentiment. Amid global concerns over rising long-term interest rates, aggressive buying remained limited. U.S. equities also faced selling pressure from near-term position adjustments, with both the Dow Jones Industrial Average and the Nasdaq Composite Index searching for a bottom while eyeing interest rate movements. The benchmark U.S. 10-year Treasury yield temporarily rose to 4.68%, its highest level in about 16 months, dampening investor sentiment. The Iranian situation continues to show no progress, and concerns persist over a prolonged blockade of the Strait of Hormuz. With inflationary pressures intensifying amid persistently high crude oil prices, views are gradually growing that the Federal Reserve may be forced to raise rates rather than cut them. Investors are also holding back on purchases ahead of NVIDIA Corporation 's earnings announcement scheduled for release after the close on May 20 local time, wanting to assess the results. While NVIDIA closed slightly lower on the day, the Philadelphia Semiconductor Index (SOX) finished marginally in positive territory. In the Tokyo market, although the decline in U.S. stocks will weigh on sentiment, with a drop of over 2,700 yen over the previous four trading days, buying on dip expectations is also anticipated, and a move into positive territory is possible.

In U.S. trading on May 19, the Dow Jones Industrial Average fell 322.24 points to 49,363.88, declining from the previous trading day. The Nasdaq Composite Index was down 220.03 points at 25,870.70.

On today's schedule are April convenience store sales and April inbound visitor numbers. Overseas releases include China's May Loan Prime Rate decision, the Eurozone's April Harmonised Index of Consumer Prices (HICP), the UK's April Consumer Price Index (CPI), minutes from the April 28-29 FOMC meeting, and a U.S. 20-year Treasury auction.

Source: MINKABU PRESS

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