The yen reached its lowest level since the '90s | Oil giants Exxon and Chevron showed off their stuff | [Finimize]( â TOGETHER WITH â â Hi {NAME}, here's what you need to know for April 27th in 3:14 minutes. â âï¸ Finimized over an espresso at [Dalston Coffee]( in Barcelona, Spain (ð¤ 18°C / 64°F) Today's big stories - The Japanese yen reached a 34-year low, which might entice vacationers, but not investors
- Record-high markets are forcing investors to decide: take profits, hold, or keep on buying â [Read Now](
- Exxon and Chevron made less profit than the same time last year, but they were hardly low on cash The Low-Down [The Low-Down] Whatâs going on here? The Japanese yen has fallen 10% this year to reach a 34-year low. What does this mean? A weaker yen does have an upside. Many of Japanâs biggest companies are manufacturers, and a weaker yen attracts bargain-hunting foreign buyers to them, while also increasing the value of their overseas takings when theyâre converted back into yen. Thatâs helped push stocks to record highs. Problem is, if the yen falls too low, it could shake investorsâ confidence, weigh on small local firms that rely on imports, and even fire up inflation which, in turn, could squash consumer spending. So the Bank of Japan (BoJ) wants a weak yen, but not too weak. Striking that balance is easier said than done, though, which is probably why the central bank hasnât meddled yet. Why should I care? For markets: Japan needs a favor. The higher a countryâs interest rates, the more attractive its currency looks to foreign investors. And right now, rates in the US are sitting at 5.5%, while Japanâs are at a flat zero. So the yenâs recovery doesnât just hinge on the Japanese economy, but also â and arguably, even more so â on the American one. Itâs hard to imagine the yen making up some of the difference between it and the US dollar unless the Federal Reserve can bring rates down a notch â and that will only happen if US inflation and economic growth both head south. The bigger picture: The US dollar is on a tear. The US dollar might just be the best hedge for your stock and bond portfolio. The greenback is seen by many as a safe-haven investment, so it could hold its value if financial markets throw a fit. Plus, if inflation picks up and wipes out stocks and bonds, that would likely encourage the Fed to increase interest rates, and that would nudge the US dollar even higher. You might also like: [The winners and losers from Japan's interest rates.]( Copy to share story: [( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=The Low-Down&utm_campaign=daily-global-27-04-2024&utm_source=email) Analyst Take
The Pros Weigh Up Stocks In The US And Japan, With Markets Hitting New Highs [The Pros Weigh Up Stocks In The US And Japan, With Markets Hitting New Highs]( Investors may be fretting about global economic and geopolitical uncertainty, but US and Japanese stock markets have been [powering]( forward. The S&P 500 has hit record new levels this year, and Japanâs Nikkei 225 index has soared to three-decade highs. Now, uncharted territory can be thrilling when the move is upward. But every new high brings a decision: take profits, hold, or keep on buying. And thatâs todayâs Insight: [what the finance pros say about investing in record-high markets](. [Read or listen to the Insight here]( Your free guide to investing with AI Artificial intelligence is slowly but surely becoming ingrained into our lives. Condensing articles, checking out medical symptoms, writing tricky break-up texts: weâve all been flocking to chatbots without a second thought, for better or for worse. So itâs no surprise that [AI investing tools]( have taken off in a big way. After all, they can tap into the insights of every resource imaginable to create [tailor-made suggestions and solutions](. The only problem: AI can go rogue, and it doesnât always understand the nuances of human thinking and communication. (Yet.) So before you use the super-smart tech to sharpen up your strategy, [read this free guide to find out how to invest with AI the right way](. [Check Out The Guide]( See Streetbeat's [disclosures](. A Problem Shared [A Problem Shared] Whatâs going on here? Exxon and Chevron [announced]( their quarterly results, and it turns out that even slight problems with profit couldnât stop them from doling out billions to their shareholders. What does this mean? Both Exxon and Chevron revealed that their sales from last quarter were lower than the same time last year. In Exxonâs case, that meant its profit came in at $8.2 billion, 6% below analystsâ forecasts. Meanwhile, Chevronâs profit fell 16% to $5.5 billion â but that was actually slightly better than expected. The declines were partly caused by natural gas prices falling 37% this year, while at the same time, higher costs and tighter margins on refined oil meant the duo made less from the pumps. Mind you, neither company was exactly strapped for cash: Chevron and Exxonâs bank balances still meant they could both pay shareholders around $6 billion in dividends and share buybacks. Why should I care? For markets: Buffettâs buying. Energy has been the standout sector in the S&P 500 index this year, notching a 16% increase on the back of rising oil prices. And because energy â along with other commodities â can hedge against inflation, rather than being dragged down like bonds, the sector should be able to hold onto its momentum. That explains why Morgan Stanley and Goldman Sachs have upgraded their outlooks for energy stocks recently, and the resilience may also have factored into Warren Buffettâs decision to increase his holdings in Chevron and Occidental Petroleum at the end of last year. The bigger picture: Oilâs life expectancy grows by the day. Some investors have grown wary of the energy sector, concerned that the transition from fossil fuels to cleaner alternatives will be too unpredictable or turbulent for their portfolios to handle. But analysts keep pushing out the expected timing of oilâs peak demand, cautious that cleaner energy projects arenât being built fast enough to fill the worldâs appetite for energy anytime soon. You might also like: [The new investing power couple, AI and energy.]( Copy to share story: [( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
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