On September 11th, what the market was most afraid of. The US Consumer Price Index (CPI) announced exceeded market expectations, demonstrating the deep roots of inflation once again. This blow completely crushed the Fed's expectations for a rate cut, and the global stock market fell flat.
Amidst this global risk-off trend, only the Japanese market closed before the announcement of the CPI, and continued to grow thanks to a small rebound in the US market the previous day. But this "Lonely High" is completely cut off from the reality of the world It is no longer a celebration, but a dangerous sign that stands on the edge of collapse. The funds, which sensed fear, escaped to safe assets, Gold is $3,700 Break through. The real sentiment of the market is here.
The Dow Jones Industrial Average is -1.8% , the S&P 500 -2.1% And then it fell sharply. Following the CPI exceeded expectations, the market has begun to fully incorporate "higher for longer" interest rate scenarios. Expectations for "soft landings," which had supported the market up until now, completely faded, and fears of a recession dominated the market.
The Nikkei Stock Average closed before the US CPI announced, Around 44,150 yen This rose for three consecutive days, bringing a new record high every day. However, this is the exact opposite of global sentiment, with futures falling sharply in after-hours trading. The yen weakens further 1 dollar = 149 yen range As the company approached, it was revealed how vulnerable this stock rise is on a foundation.
Following the announcement of the US CPI, major European indices have also fallen all over. The slowdown in the Fed's interest rate cut was also negative for the European economy, and it appeared to be a global stock market fall. In particular, high-tech stocks and real estate stocks that are weak to rising interest rates have been sold.
The Shanghai Composite Index is slightly lower. There are growing concerns about domestic real estate issues and economic slowdowns, and the global trend of risk-offs is weighing down, and the upswing continues to be heavily.
The sudden rise in gold prices clearly shows mistrust in fiat currency and a escapism from the stock market. Meanwhile, crude oil prices have fallen due to concerns about a recession. The dollar-yen market has been sold even further due to the growing Japanese-US interest rate difference, and is leaning towards the 149 yen range. It highlights the rise in Japan's stock prices in exchange for a loss of value in its own currency.
The September 11th inflation shock marked the "end" of the optimistic scenario that has dominated the market up until now. And that means that the countdown to the "beginning" of Walpurgis has entered the final stage.
The distortions in the Japanese market, which have turned a blind eye to the reality of the world and hit a lonely high, have now exceeded the critical point. When this disconnect is corrected, the impact is immeasurable.
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