Stock Market Update

The S&P 500 futures trade 42 points above fair value

Equity indices in the Asia-Pacific region finished Tuesday with gains as sentiment improved after President Trump called for peace with Iran and announced a ceasefire, although that agreement may have been violated already. Japan's Prime Minister Ishiba touted a plan to boost the country's GDP growth ahead of next month's Upper House elections. Japan's Ministry of Finance sold 20-yr bonds to decent demand.

• In economic data:
  • Japan's April BoJ Core CPI 2.5% yr/yr, as expected (last 2.4%)
  • South Korea's June Consumer Confidence 108.7 (last 101.8)
  • New Zealand's May Credit Card Spending 2.2% yr/yr (last 0.5%)

---Equity Markets---

• Japan's Nikkei: +1.1%
• Hong Kong's Hang Seng: +2.1%
• China's Shanghai Composite: +1.2%
• India's Sensex: +0.2%
• South Korea's Kospi: +3.0%
• Australia's ASX All Ordinaries: +1.0%

Major European indices trade in the green, expressing optimism about the situation in the Middle East. Germany's ifo Business Climate Index for June (88.4; expected 88.1) was a bit better than expected, reflecting improved confidence about the German economy. European Central Bank policymaker Villeroy de Galhau said that the ECB may still cut rates over the next six months despite a volatile price of oil. Germany's debt issuance in Q3 will be about EUR19 bln more than originally planned.

• In economic data:
  • Germany's June ifo Business Climate Index 88.4 (expected 88.1; last 87.5). June Current Assessment 86.2 (expected 86.5; last 86.1) and Business Expectations 90.7 (expected 90.0; last 89.0)
  • U.K.'s June CBI Industrial Trends Orders -33 (expected -28; last -30)

---Equity Markets---

• STOXX Europe 600: +1.2%
• Germany's DAX: +1.8%
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +1.3%
• Italy's FTSE MIB: +1.6%
• Spain's IBEX 35: +1.4%