The New York Stock Exchange remained on a roller-coaster ride through much of last month, but no lasting de cline appears in the offing.
With stocks locked in a crosscurrent between fears of higher interest rates and optimism about economic and corporate earnings prospects, the Dow Jones industrial average now appears poised to hover in the 10,000-12,000 range this month. The 30-stock index closed at 11.041.05 Tuesday.
The Tokyo stock market is holding its own against volatile moves overseas.
The Nikkei average appears likely to move between 18,000 and 20,000.
In assessing future market trends, we cannot take our eyes off corporate earnings and economic prospects.
At the moment, with the end of the current business year drawing near, earnings prospects remain hard to assess as businesses are busy putting the finishing touches on their earnings reports.
There is little dispute, however, that Japanese industry as a whole will wind up the year with a solid increase in earnings.
Worries remain over economic prospects, however.
Undeniably, much of the recent uptrend in the nation's gross domestic product has run out of steam.
Viewed from a longer perspective, nevertheless, the government's stimulative measures should help shore up share prices.
Indeed, investors are beginning to count on an anticipated increase in fiscal spending in the year beginning April 1.
Both capital investment and consumer spending are widely expected to bottom out in the middle of the year, clearing the way for domestic demand-driven economic recovery.