Today’s session on the Japanese equity market is marked by a combination of several factors supporting an improvement in sentiment after the earlier sell-off.
- Wall Street rebound: Nasdaq 100 futures are up around 1%, signaling improved sentiment after last week’s declines in tech stocks. In Japan, earlier selling pressure is easing, especially in the semiconductor and AI sectors.
- Decline in oil prices: Brent crude is down more than 2%, helped by a partial easing of US sanctions on Russia. Lower oil prices reduce inflation pressure and soften expectations for global interest rates.
- Buying-up losses: After last week’s sharp drop, investors are closing short positions in index futures. Additional support comes from interest in defensive stocks, which partially offsets weakness in the technology sector.
However, the scale of the rebound is still limited by ongoing concerns about bond yields and AI investment profitability.
OIL (D1)
The 100 and 200 EMAs point to continued upward momentum, although the RSI (14) is already starting to move into levels interpreted as “overbought.” Fibonacci levels drawn from the most recent upswing indicate that the latest highs are a likely upper boundary for a very broad consolidation channel. Source: xStation5
Market Wrap: Rebound in China and Falling Oil Prices, France Leads EU Declines
Chart of the Day: What’s next for tech stocks after the deepest sell-off since April 2025? (19.10.2026)
Economic Calendar: Big tech earnings week and test for the AI rally (19.10.2026)
Morning Wrap: Nasdaq rebounds ahead of Mag7 earnings, bonds regain favour, oil falls from peak (19.10.2026)
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.