Stock Market Update

[BRIEFING.COM] S&P futures vs fair value: -24.00. Nasdaq futures vs fair value: -101.00. The S&P 500 futures trade 24 points below fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note amid renewed concerns about potential U.S. involvement in the Israel-Iran conflict after President Trump called on residents of Tehran to evacuate Iran's capital. The Bank of Japan left its policy rate at 0.50%, as expected, and voted to slow JGB purchases by JPY200 bln per quarter, starting April 2026. BNP Paribas speculated that the People's Bank of China could announce its next rate cut in August.

• In economic data:
  • South Korea's May Import Price Index -5.0% yr/yr (last -2.6%) and Export Price Index -2.4% yr/yr (last 0.4%)
  • Hong Kong's May Unemployment Rate 3.5% (last 3.4%)
  • Singapore's May trade surplus SGD7.24 bln (last surplus of SGD14.22 bln). May non-oil exports -12.0% m/m (last 10.4%); -3.5% yr/yr (expected 8.0%; last12.4%)
  • New Zealand's May FPI 0.5% m/m (last 0.8%)

---Equity Markets---

• Japan's Nikkei: +0.6%
• Hong Kong's Hang Seng: -0.3%
• China's Shanghai Composite: UNCH
• India's Sensex: -0.3%
• South Korea's Kospi: +0.1%
• Australia's ASX All Ordinaries: UNCH

Major European indices trade in the red as concerns about a potential broadening of the Israel-Iran conflict outweigh a positive signal from a stronger-than-expected ZEW Economic sentiment survey from Germany and the eurozone. European Commission President von der Leyen said at the G7 summit that EU countries should have a unified approach to challenging China's trade practices. The U.S.-U.K. trade deal has been signed, lowering the U.K.'s average tariff on U.S. imports to 1.8% from 5.1%.

• In economic data:
  • Eurozone's June ZEW Economic Sentiment 35.3 (expected 23.5; last 11.6)
  • Germany's June ZEW Economic Sentiment 47.5 (expected 34.8; last 25.2) and ZEW Current Conditions -72.0 (expected -74.0; last -82.0)

---Equity Markets---

• STOXX Europe 600: -0.7%
• Germany's DAX: -0.7%
• U.K.'s FTSE 100: -0.4%
• France's CAC 40: -0.6%
• Italy's FTSE MIB: -1.3%
• Spain's IBEX 35: -1.5%