Stock Market Update

The S&P 500 futures are up 32 points and are trading 0.6% above fair value, the Nasdaq 100 futures are up 201 points and are trading 1.0% above fair value, and the Dow Jones Industrial Average futures are up 60 points and are trading 0.2% above fair value.

Equity indices in the Asia-Pacific region began the week on a mostly lower note. The People's Bank of China unexpectedly lowered its one-year loan prime rate to 3.35% from 3.45% while the five-year rate was lowered to 3.85% from 3.95%, making for the first cut to these rates since August. Amazon is expected to start selling prescription drugs in Japan later this year. The Bank of Japan's Minutes from the bond market group meeting two weeks ago showed an agreement that the central bank should set and announce the sizes for its bond purchases for the next two years at the upcoming policy meeting.

• In economic data:
  • Hong Kong' June CPI 0.5% m/m (last -0.2%); 1.5% yr/yr (last 1.2%)
  • New Zealand's June trade surplus $699 mln (expected surplus of $294 mln; last surplus of $54 mln)

---Equity Markets---

• Japan's Nikkei: -1.2%
• Hong Kong's Hang Seng: +1.3%
• China's Shanghai Composite: -0.6%
• India's Sensex: -0.1%
• South Korea's Kospi: -1.1%
• Australia's ASX All Ordinaries: -0.5%

Major European indices are starting the week on a solid note, overshadowing weakness among airlines after Ryanair missed quarterly expectations and issued soft guidance. European Central Bank policymaker Kazimir said that there is potential for additional easing while policymaker Makhlouf said that there is no need to rush to make policy decisions. The British government will reportedly offer above-inflation pay hikes to teachers and nurses.

• No data today

---Equity Markets---

• STOXX Europe 600: +1.3%
• Germany's DAX: +1.5%
• U.K.'s FTSE 100: +1.0%
• France's CAC 40: +1.4%
• Italy's FTSE MIB: +1.0%
• Spain's IBEX 35: +0.9%