The BoJ keeps rates on hold: 5 things to watch this Tuesday on the stock market

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The BoJ keeps rates on hold: 5 things to watch this Tuesday on the stock market
Credit: © Reuters.

By Laura Sanchez

Investing.com - The Bank of Japan (BoJ) decided early this morning not to touch interest rates, although according to Reuters it may be preparing to raise them.

The focus continues to be on corporate earnings. Once again today, the top companies are reporting their results.

Cryptocurrencies face another volatile week.

Here are the five factors investors should consider when making their decisions today:

1. The Bank of Japan keeps interest rates unchanged (for the time being)

The BoJ this morning kept interest rates unchanged at -0.10%, as expected by the consensus.

However, according to Reuters, BoJ policymakers are discussing when to start preparing the ground for a possible interest rate hike, which could come even before inflation reaches the bank's 2% target.

Although an interest rate hike is not imminent and the BOJ will maintain ultra-loose policy at least for the rest of this year, financial markets may be underestimating its readiness to phase out its stimulus programme, according to Reuters.

2. Corporate results

Investors are already looking forward to the corporate earnings season that started last Friday. Today Goldman Sachs (NYSE: GS ), Bank of America (NYSE: BAC ) and BNY Mellon (NYSE: BK ), among others, report their figures.

3. Crypto

The cryptocurrency sector is once again facing another week of volatility, as was the case last week. This morning, Bitcoin is trading at $42,000 and Ethereum at $3,100.

4. Asia and the American stock market

The main Asian indices are mixed today. Nikkei fell 0.2%, Hong Kong's Hang Seng dropped 0.5% and the Shanghai Composite gained 0.5%.

On Wall Street, there was no trading yesterday due to the Martin Luther King holiday.

5. Macroeconomic data

Among the main macroeconomic references, the unemployment rate in the UK , Italy's trade balance , as well as the ZEW investment confidence index in Germany and the Euro zone will stand out.

In the US, the weekly API crude oil stocks will be released.

 

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  • Emmanuel Dlamini @Emmanuel Dlamini
    It seems that Nas100 is again looking for a bounce as it falls back to FibZone 38.2 on a D1 chart. Looking forward to positive news on US Markets as I anticipate a huge Buy once the it fails to fall below this Fib level.
    Like 0
  • Kutlo Hlonolofatso @Kutlo Hlonolofatso
    that wonderful news indeed
    Like 3