- US stock futures increased on Intel's good earnings, but Asian bonds fell as investors were taken aback by Japan's surprising decision to loosen its control over market rates.
- The Nasdaq 100 contracts increased up to 0.8%, with Intel rising 8% in premarket trade after the chipmaker provided a positive sales outlook. Nvidia and Advanced Micro Devices both increased by more than 1%. The video streaming service Roku saw a 9% increase thanks to better-than-expected profit.
- The Bank of Japan was the only significant central bank that had not started to reverse its ultra-easy monetary policy, therefore it was the centre of attention on the bond markets. The central bank stated today that although it had previously set a limit on bond yields at 0.5% in an effort to stimulate borrowing and the economy, it now views that level as a reference point rather than a strict limitation.
- As a result of the action, Japan's 10-year yield reached its highest level since 2014 amid anticipation that it was the beginning of the end of exceptional stimulus measures following the recent spike in inflation. The same rate increased 14 basis points in Australia.
- ECB's Stournaras: If a September hike comes, it will be the last.
- ECB's Vasle: The September meeting could bring a hike or a pause.
- ECB's Survey: Euro zone core inflation seen at 3.1% in 2024 vs 2.8% in previous poll.
- ECB's Simkus: We are close to a peak or at the peak.
- ECB's Simkus: We might see the situation of a September pause and an October hike.