Is Nikkei 225 still going strong?Published On: 21 September 2020
Jason Chua, Dealer
As Tech Bull bail, we saw the US market going down for the past few weeks. Despite that, Nikkei which has a rather strong correlation to Dow remained strong.
The Federal Reserve expects to keep the interest rate at near-zero percent until at least 2023 to help boost the economy. This low-interest rate environment could be viewed as a catalyst for growth, which in terms means a bullish sign for the equity market. However, the lack of promising new stimulus kept bull cautious.
On Technical, we could see that Nikkei is still on a rising trend. Although the trend remains bullish, investors remained mixed as Nikkei start to range. With the bears starting to gain momentum, bulls might want to take caution in the coming week.
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