The Bank of Japan's decision to keep benchmark interest rates unchanged, as well as its current rate of yield curve control, was announced alongside the continuation of the 2% annual inflation target. It will continue to buy bonds in whatever amount necessary to maintain its target for 10-year JGB yields at zero.

EQUITY

US stock futures were trading slightly lower on Tuesday, as Goldman Sachs reported earnings below expectations and major benchmark indices fell for the regular session. Tesla, Nvidia, and AMD are among the stocks that are supporting the S&P. Ahead in Wednesday’s session, traders will be looking towards producer price index data, retail sales, business inventories, and industrial production figures, as well as speeches from Bostic, Bullard, and Harker. Market sentiment will remain volatile in the near term as investors continue to monitor economic data and the earnings season.

GOLD

Gold prices have been hanging below an eight-month high as markets await more signals from the Federal Reserve and U.S. macro data. The dollar's recovery from a seven-month low this week is putting some pressure on gold, but the precious metal is expected to remain supported in the near term.

OIL

Oil prices extended gains on Wednesday on increasing optimism over a recovery in Chinese demand. OPEC said in a monthly report that a Chinese reopening will spur a strong rebound in crude demand this year and left its global oil demand forecast unchanged at a rise of 2.22 million barrels per day. Economic indicators from the U.S., eurozone, UK, and Japan are in focus this week, though the dollar recovery could act as a headwind to oil prices in the near term.

CURRENCY

This week, the dollar regained some strength against a basket of currencies, recovering from a seven-month low. The yen fell over 2% to 130.97 paired against the dollar, and its 10-year bond yields also fell below the central bank's upper limit of 0.5% at 0.42%.