This week could be another volatile one for the stock markets. Now, you may be wondering why we are concentrating on the Nikkei as opposed to, say, a U.S. index, given the sheer number of high-impact U.S. data in the week ahead.
Wall Street racked up its biggest one-day gain in four years on Wednesday as fears about China's economy gave way to bargain hunters emboldened by expectations the U.S. Federal Reserve might not raise interest rates next month.
The dollar rose on Wednesday as some calm returned to currency markets with Wall Street stock futures pointing to a firm start and European shares recouping some of their losses, all of which lessened the need to buy safe-haven currencies like the yen.
At the end of the day it is all about the end of the day. While crude oil prices trade below $40 a barrel in crisis market price levels, it's taking its cue from the beleaguered stock market that can't hang onto a rally.
Wall Street entered correction territory on Monday, with the Dow sliding below 16,000 for the first time since February 2014 following a more-than 8% drop in Chinese stocks and a selloff in oil and other commodities.