Bank of Japan Decision Stifles Stock Futures

Central banks around the globe remain hawkish

Deputy Editor
Dec 20, 2022 at 9:15 AM
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Stock futures are hovering around fair market value on Tuesday, on the heels of an announcement from the Bank of Japan (BoJ). Traders across the globe were surprised by the BoJ's decision to widen its cap on the 10-year Japanese government bond yield. This decision, in addition to hawkish stances from central banks around the world, are stifling hopes of a year-end rally. 

Continue reading for more on today's market, including:

  • The implications of Musk's "step-down" poll on Twitter.
  • Options volume popped off for this solar stock.
  • Plus, unboxing General Mills' quarterly results; EV maker raises $1.5 billion; and analyst downgrades Stitch Fix stock.

Futures Chart December 202022

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts and 899,248 put contracts exchanged on Monday. The single-session equity put/call ratio plunged to 0.62 and the 21-day moving average stayed at 0.74.
  2. General Mills, Inc. (NYSE:GIS) is down 3.3% ahead of the open, even after the food producer reported better-than-expected results for its fiscal second-quarter, and hiked its full-year forecast. The company continues to benefit from higher prices. In the last nine months, GIS has tacked on 38.7%.
  3. Lucid Group Inc (NASDAQ:LCID) sports a 4.6% premarket lead, after the electric vehicle (EV) maker raised more than $1.5 billion in an at-the-market equity offering. Year-over-year, LCID is 81.9% lower.
  4. Stitch Fix Inc (NASDAQ:SFIX) is struggling transition to its "Fix + Freestyle" business model, according to J.P. Morgan Securities. The firm downgraded the e-tailer to "underweight" from "neutral," sending shares 4.2% lower before the open. SFIX already carries a nearly 84% year-to-date deficit.
  5. Building permits and housing starts data are due out today
     

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Overseas Investors React to Bank of Japan's Move

Asian markets dipped even lower today, led by the Japanese Nikkei, which dropped 2.5% after the BoJ widened its yield curve control tolerance range. The central bank did keep its low interest rates steady, however, and noted that it wouldn’t hesitate to further ease monetary policy. Elsewhere in the region, the Hong Kong Hang Seng lost 1.3%, the South Korean Kospi fell 0.8%, and the Shanghai Composite in China shed 1.1%.

In Europe, markets are also falling as investors around the globe weighed the implications of Japan’s latest update. The French CAC 40 and German DAX have both dropped 0.3%, while the London FTSE 100 was last seen flat.

 

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