Stock Market Update

[BRIEFING.COM] The stock market is now poised for a modestly lower opening S&P 500 futures trading nine points below fair value.

Equity indices in the Asia-Pacific region ended Wednesday on a mostly lower note. President Trump expressed doubt that a trade deal with Japan will get done ahead of the July 9 deadline, adding that Japan's tariff may be increased to as much as 35%. Secretary of State Rubio will travel to Japan, South Korea, and Malaysia next week. There is a growing likelihood of a rate cut from the Reserve Bank of Australia on July 8.

• In economic data:
  • Japan's June Monetary Base -3.3% yr/yr (expected -3.5%; last -3.4%)
  • South Korea's June CPI 0.0% m/m, as expected (last -0.1%); 2.2% yr/yr (expected 2.1%; last 1.9%)
  • Hong Kong's May Retail Sales 2.4% yr/yr (last -2.3%)
  • Australia's June AIG Construction Index -14.9 (last -6.4) and AIG Manufacturing Index -29.3 (last -23.5). May Building Approvals 3.2% m/m (expected 4.2%; last -4.1%); 8.0% yr/yr (last 5.5%). May Retail Sales 0.2% m/m (expected 0.3%; last 0.0%)

---Equity Markets---

• Japan's Nikkei: -0.6%
• Hong Kong's Hang Seng: +0.6%
• China's Shanghai Composite: -0.1%
• India's Sensex: +0.3%
• South Korea's Kospi: -0.5%
• Australia's ASX All Ordinaries: +0.7%

Major European indices trade mixed. European Central Bank policymaker Centeno said that the central bank is in no hurry to cut rates while policymaker Rehn said that the central bank should be on watch for inflation potentially staying below target in persistent fashion. The EU is resisting British Prime Minister Starmer's attempt to rejoin the EU's trading union.

• In economic data:
  • Eurozone's May Unemployment Rate 6.3% (expected 6.2%; last 6.2%)
  • France's May budget deficit EUR94.0 bln (last deficit of EUR69.3 bln)
  • Italy's May Unemployment Rate 6.5% (expected 6.0%; last 6.1%)
  • Spain's June Unemployment Change -48,900 (expected -69,500; last -57,800)

---Equity Markets---

• STOXX Europe 600: -0.2%
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: -0.3%
• France's CAC 40: +0.8%
• Italy's FTSE MIB: +0.2% 
• Spain's IBEX 35: +0.2%