Japan in the World

Effects of the US Presidential Election The non-ferrous metals market and US long-term interest rates NOMURA London Metal Exchange Index (left) 1984=1000 US 10 Year Treasury Rate (right) 3600 % 3.5 3400 3200 3000 2800 2600 2400 2200 3.0 2.5 2.0 1.5 1.0 Joe Biden overcame incumbent Donald Trump in the November 2020 US presidential election to become the next president-elect. The concurrent congressional elections were also a focus of attention, as people watched to see if the split congress, with different parties holding majorities in the Senate and the House, would be resolved. It is growing more likely that the large-scale economic countermeasures and fiscal mobilization expected by the market will not come to pass A failure to increase the scale of fiscal measures or an inability to translate upscaled fiscal measures into accelerated economic growth following the US presidential election is likely to promote a prolongation of monetary easing based on low inflation. Due to this, it is predicted that relatively active risk-taking based on an outlook for prolonged low interest rates will continue in financial markets, and the environment will remain conducive to funds flowing into futures markets for non- ferrous metals and other commodities in addition to stock 0.5 2000 0.0 2015 2016 2017 2018 2019 2020 Source: Bloomberg materials

View entire presentation