Stock Market Update

The S&P 500 futures are up nine points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 70 points and are trading 0.4% above fair value, and the Dow Jones Industrial Average futures are down 82 points and are trading 0.2% below fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. The Chinese government is willing to offer perks to German carmakers in order to prevent the EU's planned implementation of tariffs on imported electric vehicles. China's Premier Li expressed confidence that the domestic economy will grow about 5.0%. Big Chinese telecom companies are reportedly being probed by the Biden administration. Moody's does not expect Japan to reach its FY25 budget target.

• In economic data:
  • Japan's June Corporate Price Services Index 2.5% yr/yr (expected 3.0%; last 2.7%). April BoJ Core CPI 2.1% yr/yr (expected 1.9%; last 1.8%). May Leading Index 110.9 (expected 111.6; last 112.2) and Coincident Indicator 1.0% m/m, as expected (last 2.1%)
  • South Korea's June Consumer Confidence 100.9 (last 98.4)
  • Hong Kong's May trade deficit $12.1 bln (last deficit of $10.0 bln). May Imports 9.6% m/m (last 3.7%) and Exports 14.8% m/m (last 11.9%) o Australia's June Westpac Consumer Sentiment 1.7% (last -0.3%)

---Equity Markets---

• Japan's Nikkei: +1.0%
• Hong Kong's Hang Seng: +0.3%
• China's Shanghai Composite: -0.4%
• India's Sensex: +0.9%
• South Korea's Kospi: +0.4%
• Australia's ASX All Ordinaries: +1.3%

Major European indices trade in the red. Airbus is down more than 10% after cutting its guidance for the year, which has also weighed on engine maker Rolls-Royce. Merck is also down sharply after discontinuing a drug study. Latest polls from France suggest that Marine Le Pen's party remains on track to gain about 36% of the vote in the first round of the looming election while President Macron's party is polling around 20.5%.

• In economic data:
  • Spain's Q1 GDP 0.8% qtr/qtr (expected 0.7%; last 0.7%); 2.5% yr/yr (expected 2.4%; last 2.4%). May PPI -4.6% yr/yr (last -6.7%)

---Equity Markets---

• STOXX Europe 600: -0.2%
• Germany's DAX: -1.1%
• U.K.'s FTSE 100: -0.3%
• France's CAC 40: -0.9%
• Italy's FTSE MIB: -0.2%
• Spain's IBEX 35: -0.4%