Stock Market Update

The S&P 500 futures are down one point and are trading roughly in line with fair value, the Nasdaq 100 futures are down 38 points and are trading 0.2% below fair value, and the Dow Jones Industrial Average futures are up 80 points and are trading 0.2% above fair value.

Equity indices in the Asia-Pacific region began the week on a mixed note with China's Shanghai Composite (-1.2%) falling to its lowest level since late February. China's fiscal revenue for the first five months of the year was down 2.8% yr/yr while expenditures were up 3.4%. The Bank of Japan will hold a meeting with bond market participants on July 9 and 10. Japan's Prime Minister Kishida said that gasoline subsidies will be maintained through the end of the year.

• In economic data:
  • China's May FDI -28.2% YTD (last -27.9%)
  • Singapore's May CPI 0.7% m/m (last 0.1%); 3.1% yr/yr (expected 3.0%; last 2.7%). May Core CPI 3.1% yr/yr (expected 3.0%; last 3.1%)
  • New Zealand's May trade surplus NZD204 mln (expected surplus of NZD155 mln; last deficit of NZD3 mln). May Credit Card Spending 0.0% yr/yr (last -0.8%)

---Equity Markets---

• Japan's Nikkei: +0.5%
• Hong Kong's Hang Seng: UNCH
• China's Shanghai Composite: -1.2%
• India's Sensex: +0.2%
• South Korea's Kospi: -0.7%
• Australia's ASX All Ordinaries: -0.8%

Major European indices are starting the week on a higher note. Germany's Economy Minister Habeck said that the European Union is willing to negotiate the specifics of electric vehicle tariffs with China. European Central Bank policymaker Schnabel said that the central bank will not commit to a specific policy path since there is a potential for price shocks.

• In economic data:
  • Germany's June ifo Business Climate 88.6 (expected 89.4; last 89.3). June Current Assessment 88.3 (expected 89.4; last 89.3) and Business Expectations 89.0 (expected 91.0; last 90.3)
  • U.K.'s June CBI Industrial Trends Orders -18 (expected -26; last -33)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.5%
• U.K.'s FTSE 100: +0.5%
• France's CAC 40: +0.8%
• Italy's FTSE MIB: +1.0%
• Spain's IBEX 35: +0.6%