The Nikkei surges on BoJ ultra dovish policy

Speculation about the BOJ delaying its ultra-dovish policy tightening in 2024 boosts the Nikkei

By Nadia Elbilassy | @Nadia Elbilassy | 10 January 2024

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  • FactSet projects 1.3% earnings increase for the S&P in Q4 2023, potentially marking the second consecutive quarter of positive year-over-year growth.

  • ECB Vice President Luis de Guindos voiced concerns about the fragility of the eurozone specifically in the last quarter.

  • The Nikkei emerged as one of the top-performing major stock indices in 2023

On the Market Watch!


The Nikkei emerged as one of the top-performing major stock indices in 2023, with a 30% gain. On the back of the accommodative stance of the Bank of Japan (BOJ), which continued its stimulative policies while many other central banks opted to raise interest rates.

The Nikkei's performance was boosted today as markets weighed the widespread belief that the BOJ would need to postpone its intentions to start tightening its ultra-dovish policy in 2024.

S&P 500 Earnings

FactSet predicts that in the last quarter of 2023, the S&P 500 is anticipated to experience a 1.3% increase in earnings compared to the same period the previous year. If this forecast comes to fruition, it would mark the second consecutive quarter of positive year-over-year earnings growth for the index.

As we step into the fourth quarter earnings season, the forward 12-month price-to-earnings (P/E) ratio for the S&P 500 stands at 19.2. This value exceeds both the five-year average of 18.9 and the ten-year average of 17.6, indicating a relatively high valuation compared to historical benchmarks.


The EUR/USD pair was little changed to 1.0943, holding steady after falling at the start of the week to 1.0874. Luis de Guindos, ECB vice president has voiced concerns suggesting that the Eurozone might have faced a recession in the last quarter. Additionally, he highlighted the ongoing fragility of economic prospects in the region which also weighed on the pair.