Oil is falling and the negative results of Japanese companies lead to a decline in the Japanese stock exchange

Oil is falling and the negative results of Japanese companies lead to a decline in the Japanese stock exchange

Oil is falling and the negative results of Japanese companies lead to a decline in the Japanese stock exchange:Trading results have not been good in today’s trading markets,
where the Tokyo Stock Exchange has declined following some negative results for companies, especially technological ones, and oil has also not survived,
as it fell following an increase in US inventories.

Evest follows developments in economic markets and relays them to you in the following report.


Tokyo Stock Exchange falls by 1%

Sony is hitting a big high in operating profit of 1%

The FTSE 100 is stable at the opening

Oil continues to fall due to increased inventories



Tokyo Stock Exchange falls by 1%

The Tokyo Stock Exchange closed today down 0.96% on its main index, Nikkei,
affected by the negative business results of some Japanese companies due to the global shortage of chips.

The Nikkei ended down 278.15 points, to integer 28820.09, while the broader Topix index, which includes all stocks in the first division,
the largest, fell by 14.15 points, or 0.70%, to 1.999.66.

The Tokyo stock market was pessimistic yesterday on the US Dow Jones index and succumbed to concern about the impact of the semiconductor shortage.

In addition, the Bank of Japan (BOJ) on Thursday adjusted its forecast for the country’s economic growth,
which is expected to expand by 3.4% in the fiscal year 2021 and excluded its previous estimate of an increase in inflation for this year.

The issue of semiconductor shortages has led the manufacturer of industrial robots and machinery, Fanuc, to cut its estimates for this year’s net profit,
causing the stock market to fall by 8.66% of this Nikkei heavyweight.

Technology giant SoftBank lost 2.69%, while sensor and other optical device manufacturer Keyence lost 0.82%.

On the other hand, manufacturers of semiconductor components Tokyo Electron (2.02%) and Lasertec (2.09%) have significant gains
which could benefit from a crisis in global demand for chips.

In the first division, 953 stocks rose against 1143 stocks and 88 stocks remained unchanged.

Circulation amounted to 5.06 trillion yen (38.4 billion euros). 

The figures from technology company Hitachi were not good either.

Shares of the company, which is mainly active in the automotive industry and suffers from delivery constraints, declined by 1.5 percent. 

The market expects the effects of the chips shortage to ease by the end of the year. 



Sony is hitting a big high in operating profit of 1%


On Thursday, Japan’s Sony posted a surprising 1% rise in operating profit for the second quarter
despite the pressure on cost margins from increased sales of the PlayStation 5 console.

The weak profitability in the major gaming sector cannot prevent the group from raising its full-year operating projections
by 6% to 1 trillion yen ($8.81 billion) from August projections,
driven by expected profit growth in areas including film, music and electronics.

Sony said it has sold 13.4 million cumulative PS5 consoles since its launch last November.

This contributed to a 27% increase in sales on an annual basis in the gaming console, although the profit was lower as the group sold the hardware at less than cost.

Gaming console manufacturers frequently sell new hardware at less than the cost of manufacturing as they build a stabilization base for software sales.

Sony said sales of first-party titles fell, despite the growth of other developers’ sales. It`s  aims to sell 14.8 million PS5 consoles this fiscal year,
a goal that takes into consideration the global shortage of semiconductors.

Sony announced a collective profit of 318.5 billion yen in the July-September period.

This compares with an average of six analysts’ estimates of 222 billion yen.

Sony also said it was considering including a partnership with Taiwan Semiconductor Manufacturing Co Ltd in its plans to build a chip factory in Japan,
as companies scramble to secure stable long-term supplies of semiconductors.

Through its work, Sony is engaged in a global battle to attract consumer attention as entertainment giants’ aspirations outweigh US growth limits and hunt non-English speaking content creators.



The FTSE 100 is stable at the opening

The FTSE 100 is expected to start trading with slight change after ending the previous session lower following the release of the latest budget statement by British Treasury Secretary Rishi Sunak. 

The London Index is expected to open 2 points lower after closing 24 points lower on Wednesday. 

HSBC economists say that Sonak oversaw the biggest absolute tax increase since 1993, along with its supervision of raising the overall burden to its highest level since 1949. 

“Of course, debt still seems to be very high, at 90% of GDP in 2025, by historical standards,”
they say on Thursday’s agenda, the European Central Bank’s policy meeting and US economic growth data will be held for the third quarter.

Oil continues to fall due to increased inventories

Benchmark oil prices continued to decline on Thursday against the backdrop of data on US fuel inventories increase last week.

In addition, the market has been pressured by reports that Iran may soon resume negotiations on its nuclear program, according to MarketWatch.

December Brent oil futures on the London Stock Exchange ICE Futures fall by $1.57 (1.86٪) to $83.01 per barrel.

On Wednesday, it fell by $1.82 (2.1%) to $84.58 per barrel at the previous closure.

The price of West Texas Intermediate crude futures in December in electronic trading on the New York Mercantile Exchange (NYSE)
fell in the morning by $1.39 (1.68%) to $81.27 per barrel.
As a result of the previous session, its price had fallen by $1.99 (2.4%) to $82.66 per barrel.

The United States Department of Energy said on Wednesday that commercial oil reserves in the United States
had increased over the past week by 4.27 million barrels to 430.81 million barrels.

Analysts polled by Standard & Poor’s Global Platts had expected a 100-thousand-barrel fall.

Gasoline reserves decreased by 1.99 million barrels and distillates amounted to 215.75 million barrels – 432,000 barrels to 124.96 million barrels.

In the meantime, inventories at the Cushing terminal, where oil traded on the NYMEX is stored,
fell by 3.9 million barrels to 27 million barrels, the lowest level since October 2018.


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