- The Bank of Japan made only modest adjustments to its policy settings, disappointing some in the market who had anticipated more, and the yen plunged to its lowest point in two months.
- The decision by the central bank to stick with yield curve control, stating that 1% is a reference point, caused the currency to fall again below 150 per dollar. Stocks in Europe increased as a result of Anheuser-Busch and Stellantis' better-than-expected profits.
- S&P 500 futures rose in the meantime, setting up stocks to maintain their gains following Monday's surge that lifted the index 1.2%. After the US Treasury lowered its forecast for government borrowing for the upcoming quarter due to higher-than-expected revenue, bonds increased in value.
- Investors are closely monitoring the BoJ's move because of its strict control over the bond market since it implemented yield-curve control in 2016. In contrast to its earlier promise to carry out daily bond buying operations at 1%, the central bank announced on Tuesday that it will adopt a more flexible strategy to managing rates on 10-year government paper.
- Fitch affirms Japan at "A", outlook stable.
