S&P futures are indicating a higher open today, up +0.87% following mixed results from Mag 7 earnings. Asian equities closed broadly higher today, and European equity markets are firmer in early trades.

The Bank of Japan has increased its uncollateralized overnight call rate to 0.25% from the previous range of 0~0.1% by a 7-2 vote, defying market expectations for no change. The BOJ also unanimously agreed to reduce monthly JGB purchases to ¥3T ($19.6B) in 1Q26, with further quarterly reductions of ¥400B. The adjustments aim to achieve the 2% inflation target while maintaining accommodative financial conditions, as real rates are expected to remain significantly negative. The July Outlook Report revised the FY24 core CPI forecast down to 2.5% from 2.8%, upgraded FY25 to 2.1% from 1.9%, and kept FY26 unchanged at 1.9%.

Companies Mentioned: Microsoft, AMD, Intel