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Chief Economist Samy Chaar and Head of Investment Strategy Luca Bindelli stated in a research report that their baseline scenario remains that around half of the reserves will be restored within the coming weeks, which should be enough to avoid further disruptive shortages. They expect Brent crude oil to average $90 per barrel over the six months since the conflict began, and $78 per barrel over the twelve-month period. They said that continued easing of tensions in the Middle East will create conditions for an expansion of the equity market rally, while the decline in inflation expectations should improve the outlook for bond returns. Lombard Odier maintains its overweight position in equities through emerging market stocks and holds a neutral view on fixed income assets.

(1) Tohru Sasaki, Chief Strategist at Fukuoka Financial Group and former Bank of Japan official, stated that a minor surprise concerned the scale of Japanese government bond purchases: the market originally expected no change after April next year, but in fact, there will be a slight reduction before remaining unchanged, which is somewhat different from the consensus. (2) The focus is on how Deputy Governor Shinichi Uchida will explain future policy. He needs to act prudently and will find it difficult to convey any major shift; therefore, the market may interpret his press conference as a dovish signal. (3) On the day of the rate hike, the Ministry of Finance may intervene due to the continued weakness of the yen. Looking ahead, Governor Kazuo Ueda's health issues are crucial; if he is replaced for health reasons, his successor is likely to be a dovish governor.

Glonghui, June 16 — Ride-hailing app Go raised 88.6 billion yen (approximately $552.6 million) in its IPO, marking Japan’s largest initial public offering (IPO) so far this year. Go surged on its debut in Tokyo, jumping as much as 23% from its 2,400 yen issue price in early trading before paring some gains. By the end of the midday break, shares were up 8.8%. Founded in 1977, Go began as a taxi operator and has since evolved into Japan’s largest taxi-hailing app. The company plans to use the net proceeds to fund research and development for its autonomous taxi business and support its expansion plans, including mergers and acquisitions both inside and outside the taxi and ride-hailing industry.