Day: 15 January 2024

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Japan Nikkei index hit an all-time high of 38915 in December 1989, will it ever be broken?

Nikkei

Japan’s Nikkei 225 index set a new record in nearly 34 years last week, breaking the 35000 barrier for the first time since February 1990. Its all-time high of 38915 was hit in December 1989? That’s a 35 year old record!

Some analysts think that the long-term prospects for the Japanese markets look good.

The Nikkei 225 index is a benchmark of the Japanese stock market. It is composed of 225 large companies listed on the Tokyo Stock Exchange. The index has been fluctuating between 20000 and 30000 points for most of the past decade. It recovered from the lows of the global financial crisis in 2008 and 2009.

According to some market strategists, the Nikkei 225 index could reach 40000 points in the next 12 months. Fundamentals are ‘pointing in the right direction’ and investor interest in Japan is increasing. 

This would breach the Nikkei’s all-time high of 38915 reached in December 1989. However, others suggest the rally will struggle somewhere between 36000 and the all-time high. This suggest that much of the good news is already priced in.

I think I could probably have guessed that too. The Nikkei hasn’t reached the original high of 1989 for 35 years!

It’s due a new record, isn’t it?

Nikkei index chart from 1984 to 2024 – 40 years

Nikkei index chart from 1984 to 2024 – 40 years
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Crypto firms introduce risk assessments and finance tests in response to strict new rules in UK

Cryptocurrency

New rules and risk assessments for UK Crypto traders

Coinbase and Gemini, for example, are among cryptocurrency exchanges that now require U.K. users to fill out risk assessments. These questionnaires are designed to test their financial knowledge.

The measures are a response to new rules in the UK. The rules require crypto companies to clearly inform users of the risks involved in trading cryptocurrencies. If a customer fails to successfully complete the requests, they will be prevented from trading with their crypto account.

Risk warning

Crypto.com, Coinbase, Gemini and other cryptocurrency exchanges are warning UK users that they’ll need to complete investment questionnaires. Thes are aimed at testing their financial knowledge before being allowed to trade.

The companies have told UK users they are required to complete a declaration about what type of investor they are. Traders are required to respond to a set of questions on financial services to permit use of their platforms.

Clients’ declaration

In the client’s declaration section, users are asked to select their investor profile. A trader is directed to inform the company of their financial status.

Questions such as: are you a high-net-worth customer earning above £100,000 per annum or with a net worth of more than £250,000? Or, are you a ‘restricted investor’ who won’t invest more than 10% of their assets. If clients do not complete the requests, they are prevented from trading crypto related products.

The financial questionnaires, require users to respond to numerous questions about the range of products available. They want the client to fully understand the potential volatility of crypto assets.

Strict rules to protect the retail trader

Since the UK passed the Financial Services and Markets Act, companies that offer crypto assets and certain types of digital currency, known as stablecoins, are now covered by UK law.

These are the same rules as those that govern traditional financial services and are aimed at protecting the retail trader.