Stock Market Update

The stock market remains poised for a higher start with S&P 500 futures trading 25 points above fair value.

Equity indices in the Asia-Pacific region ended Thursday on a mixed note with Japan's Nikkei (+1.7%) finishing at its best level since late January while South Korea's Kospi (-0.9%) reversed from its best level since September 2021 after President Lee warned that the Korean economy is in a desperate situation, adding that bold investment should be made in AI and chips. Japan's top trade negotiator repeated that he cannot accept a 25% tariff on auto exports to the U.S.

• In economic data:
  • South Korea's June Manufacturing BSI Index 70 (last 73)
  • Singapore's May Industrial Production -0.4% m/m (expected -2.5%; last 4.9%); 3.9% yr/yr (expected 2.6%; last 5.6%)
  • Hong Kong's May trade deficit HKD27.3 bln (expected deficit of HKD16.0 bln). May Imports 18.9% m/m (last 15.8%) and Exports 15.5% m/m (last 14.7%)

---Equity Markets---

• Japan's Nikkei: +1.7%
• Hong Kong's Hang Seng: -0.6%
• China's Shanghai Composite: -0.2%
• India's Sensex: +1.2%
• South Korea's Kospi: -0.9%
• Australia's ASX All Ordinaries: -0.1% 

Major European indices trade on a mixed note. Lawmakers in the U.K. are putting together an effort to block Prime Minister Starmer's planned cuts to welfare. European Commission President von der Leyen is expected to face a confidence vote over the handling of the response to the coronavirus pandemic, but she is likely to survive the vote. The French government needs to cut another EUR5 bln from spending to achieve a 5.4% deficit for 2025.

• In economic data:
  • Germany's July GfK Consumer Climate -20.3 (expected -19.1; last -20.0)
  • U.K.'s June CBI Distributive Trades Survey -46 (expected -24; last -27)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.3%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: -0.4%
• Spain's IBEX 35: -0.2%