Stock Market Update

The S&P 500 futures currently trade 12 points above fair value. 

Equity indices in the Asia-Pacific region began the week on a mostly higher note while Japan's Nikkei was closed for a holiday. Japan's ruling party will need to seek a new coalition partner after losing its majority in a weekend election, though Prime Minister Ishiba said he intends to remain in his post. A weekend meeting between Treasury Secretary Bessent and Japan's top trade negotiator in Osaka did not yield any noteworthy results. Australia's ambassador to the U.S. said that the joint submarine project with the U.S. and the U.K. is under review. The People's Bank of China made no changes to its one-year (3.0%) and five-year (3.5%) loan prime rates.

• In economic data:
  • Hong Kong's July CPI 0.0% m/m (last -0.3%); 1.4% yr/yr (expected 1.5%; last 1.9%)
  • New Zealand's Q2 CPI 0.5% qtr/qtr (expected 0.6%; last 0.9%); 2.7% yr/yr (expected 2.8%; last 2.5%)

---Equity Markets---

• Japan's Nikkei: HOLIDAY
• Hong Kong's Hang Seng: +0.7%
• China's Shanghai Composite: +0.7%
• India's Sensex: +0.5%
• South Korea's Kospi: +0.7%
• Australia's ASX All Ordinaries: -0.9%

Major European indices trade in the red. President Trump spoke in favor of a 15-20% tariff on imports from Europe while EU officials had hoped for a 10% baseline tariff. Discount air carrier Ryanair reported a record profit for Q1 while automaker Stellantis reported weak results for the first half of the year. The EU is reportedly looking into banning car rental companies and large corporations from buying non-electric vehicles for their fleets starting in 2030.

• In economic data:
  • U.K.'s July Rightmove House Price Index: -1.2% m/m (last -0.3%); 0.1% yr/yr (last 0.8%)

---Equity Markets---

• STOXX Europe 600: -0.2%
• Germany's DAX: -0.1% 
• U.K.'s FTSE 100: unch
• France's CAC 40: -0.5%
• Italy's FTSE MIB: -0.7%
• Spain's IBEX 35: -0.2%