Stock Market Update

The S&P 500 futures are down ten points and are trading 0.2% below fair value, the Nasdaq 100 futures are down 25 points and are trading 0.1% below fair value, and the Dow Jones Industrial Average futures are down 100 points and are trading 0.2% below fair value.

Equity indices in the Asia-Pacific region ended the midweek session on a higher note. The Bank of Japan will reportedly consider hiking rates at all upcoming meetings, including the one scheduled for July. The central bank is expected to announce a reduction to its monthly purchases. Australia's CPI accelerated to 4.0% yr/yr in May, leading to renewed speculation about a potential August rate hike from the Reserve Bank of Australia. China's 10-yr yield has slipped back toward its low from late April in the 2.20% area. South Korea's finance minister expects that exports will return to record levels imminently.

• In economic data:
  • Australia's May MI Leading Index 0.0% m/m (last 0.0%) and May CPI Indicator 4.0% yr/yr (expected 3.8%; last 3.6%)
  • Singapore's May Industrial Production 1.1% m/m (expected 1.8%; last 7.5%); 2.9% yr/yr (expected 2.0%; last -1.2%)

---Equity Markets---

• Japan's Nikkei: +1.3%
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: +0.8%
• India's Sensex: +0.8%
• South Korea's Kospi: +0.6%
• Australia's ASX All Ordinaries: -0.7%

Major European indices are mostly lower. European Central Bank policymaker Rehn said that rate changes are a possibility at every upcoming ECB meeting, which has raised hopes for another rate cut in July. The ECB has reportedly started the review of its monetary policy strategy, which will be publicized in the second half of 2025. Outgoing Dutch Prime Minister Rutte will be the next secretary general of NATO, as expected.

• In economic data:
  • Germany's July GfK Consumer Climate -21.8 (expected -19.4; last -21.0)
  • U.K.'s June CBI Distributive Trades Survey -24 (expected 1; last 8)
  • France's June Consumer Confidence 89, as expected (last 90). May jobseeker total 2.816 mln (last 2.775 mln)
  • Swiss June ZEW Expectations 17.5 (last 18.2)

---Equity Markets---

• STOXX Europe 600: -0.6%
• Germany's DAX: -0.4%
• U.K.'s FTSE 100: -0.4%
• France's CAC 40: -1.1%
• Italy's FTSE MIB: -0.7%
• Spain's IBEX 35: -0.9%