The Money Edit

Opening bell

Opening bell

S&P futures 0.3%
Nikkei 225 65,290 1.8%
Brent crude $101.92 2.8%
10-year Treasury to 4.93%
BOJ policy rate to 1.25%
Stoxx 600 0.9%

Bank of Japan hikes, futures point higher

Overnight

US stocks bounced on Thursday, with the S&P 500 up 1.1% to 7,637.76, the Nasdaq 100 up 1.7% and the Dow up 0.6%, as chipmakers led and the 10 year Treasury yield eased about 9 basis points to 4.93%. The Bank of Japan then raised its policy rate by a quarter point to 1.25% in a 7 to 2 vote, the highest level in 31 years, and Japanese stocks rose anyway, with the Nikkei 225 up 1.8% to 65,290 and South Korea's Kospi up 2.6%. Europe followed higher with the Stoxx 600 up 0.9%, Brent crude fell as much as 2.8% to $101.92 a barrel in a third straight day of losses, and US futures ticked up, with S&P 500 contracts up 0.3% and Nasdaq 100 contracts up 0.6%.

What to watch

US industrial production for August lands at 9:15am Eastern, a measure of how much the country's factories, mines and utilities actually produced, and it is one of the few hard readings on activity now that the Federal Reserve has started raising rates again. Today is also quarterly options expiry, known as triple witching, when stock options, index options and index futures all expire on the same day, so expect heavier volume and price swings that reflect contract mechanics rather than fresh news. The bigger story underneath both is that oil is retreating just as central banks tighten, which is why falling crude is being read as good news for inflation and for stocks.

Sources