The Big Wave Again? Outlook of the Stock
The fall season brings a number of important events that will potentially determine the medium- to long-term direction of the country’s economy. The Nikkei may see another period of drastic fluctuations toward the end of the year.
The Syrian situation is currently the biggest source of uncertainty in the global market. The U.S. and its allies are preparing for military intervention (cruise-missile attacks against military facilities) in response to the Syrian government‘s alleged use of chemical weapons in the de-facto civil war against anti-government forces.
If the planned military strike takes place, the balance of power in the Middle East will shift, particularly with respect to neighboring countries such as Iran, Iraq and Israel as well as their respective allies. This will cause logistical disruptions and price escalations in the oil market, the flight of capital, and increased volatility in the stock, currency and commodities markets due to inflow. Those changes will significantly impact not only the Japanese economy but the global economy as well, and consequently the market participants are monitoring the developments…Read Full Texts