Japan's nikkei index hits historic high!
The Nikkei 225 - Japan's key stock index comprising 225 companies from the Land of the Rising Sun listed on the Tokyo Stock Exchange. It is calculated as the arithmetic mean of their values. The index was introduced in 1950 and named after the newspaper that first applied such a calculation methodology to the Japanese stock market. The Tokyo Stock Exchange (TSE) is one of the largest in the world, with over 2,000 companies represented, including brands known to everyone - Toyota, Sony, Mitsubishi, Nintendo, SoftBank, and many others. In terms of market capitalization, TSE is second only to the New York Stock Exchange. The historic peak of #NIKKEI was reached on December 29, 1989, when the index rose to 38,957 points during the day's trading. And now, for the first time in 34 years, in our days, #NIKKEI has exceeded the 40,000-point mark. FreshForex analysts point to the following factors driving the growth of the Japanese stock market in 2024:
- Strengthening of technology company stocks and reports of high corporate earnings,
- Investor optimism amid billionaire Warren Buffett's investment in major Japanese companies (Berkshire Hathaway holding),
- Exporter stocks supported by a weakening yen, increasing their profits in the national currency,
- Rising inflation to 2.8% - a radical change compared to the deflation of previous years when constant price declines negatively affected company profits.
Thanks to these factors, traders worldwide see increasing opportunities in the Japanese market. In 2023, the Nikkei 225 gained 29%, marking the highest annual growth in a decade. And since the beginning of the current year, it has added another 22%, making the contract extremely attractive for investment. Evaluate the potential of the #NIKKEI contract alongside successful traders on our trading platform!
Bright shine of gold above new peaks
BRIGHT SHINE OF GOLD ABOVE NEW PEAKS
On April 12, gold once again set a record, surpassing the $2400 per ounce mark. Since the beginning of the year, XAUUSD has already risen by +15%, which currently outpaces the US stock market nearly threefold (Nasdaq 100 and S&P 500 are currently showing growth of around 6%).
Against the backdrop of this historical surge, experts predict further price hikes for the precious metal, confidently stating the possibility of reaching $3000 per ounce.
FreshForex analysts have repeatedly forecasted such growth since November 2023. We believe that gold continues to be a profitable investment, supported by several factors:
- Geopolitical risk and economic uncertainty. Last year, gold prices increased by more than 19%, and according to analysts, there is still room for growth in this rally. Conflicts in the Middle East and other hotspots around the world increase the premium for geopolitical risk, maintaining interest in gold.
- Forecasts from major financial institutions' analysts. Bank of America and Citigroup are optimistic about gold's future, predicting its rise to $3000 per ounce in the coming years. Goldman Sachs has raised its gold price forecast to $2700 per ounce, and UBS expects it to reach $2500 by the end of 2024. Analysts believe that increased investor inflows, expectations of US Federal Reserve interest rate cuts, and active purchases by major central banks and consumers in China will support this growth.
- Investors view gold as a hedge against inflation and economic uncertainty.Demand for the precious metal strengthens during periods of declining confidence in risky assets such as currency, stocks, and bonds, and it is forecasted that this trend will continue, pushing gold prices to new heights.
Thus, confidence in gold remains unshaken, giving the green light for new investment flows and trading ideas. Our traders have assessed market sentiment and actively use the XAUUSD trading pair in their strategies.
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