Stock Market Update

The S&P 500 futures currently trade three points below fair value. 

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. South Korea is reportedly looking to invest $100 bln in the U.S. as part of a trade deal with the Trump administration. Expectations for an October rate hike from the Bank of Japan rose significantly after yesterday's announcement of Japan's trade deal with the U.S. Japan's Manufacturing PMI (48.8) returned into contractionary territory in the flash reading for July.

• In economic data:
  • Japan's flash July Manufacturing PMI 48.8 (expected 50.2; last 50.1) and flash July Services PMI 53.5 (last 51.7)
  • South Korea's Q2 GDP 0.6% qtr/qtr (expected 0.5%; last -0.2%); 0.5% yr/yr (expected 0.4%; last 0.0%)
  • India's flash July Manufacturing PMI 59.2 (last 58.4) and flash July Services PMI 59.8 (last 60.4)
  • Australia's flash July Manufacturing PMI 51.6 (last 50.6) and flash July Services PMI 53.5 (last 51.7)

---Equity Markets---

• Japan's Nikkei: +1.6%
• Hong Kong's Hang Seng: +0.5%
• China's Shanghai Composite: +0.7%
• India's Sensex: -0.7%
• South Korea's Kospi: +0.2%
• Australia's ASX All Ordinaries: -0.2%

Major European indices trade on a mostly higher note with Spain's IBEX (+1.6%) showing relative strength and bank stocks contributing to the outperformance. The European Central Bank will release its latest policy statement at 8:15 ET, but a rate cut is not expected at this time. Germany's flash July Services PMI (50.1) inched into expansionary territory. Deutsche Bank and BNP Paribas reported stronger-than-expected results for Q2.

• In economic data:
  • Eurozone's flash July Manufacturing PMI 49.8 (expected 49.7; last 49.5) and flash July Services PMI 51.2 (expected 50.6; last 50.5)
  • Germany's August GfK Consumer Climate -21.5 (expected -19.4; last -20.3). Flash July Manufacturing PMI 49.2 (expected 49.4; last 49.0) and flash July Services PMI 50.1 (expected 50.0; last 49.7)
  • U.K.'s flash July Manufacturing PMI 48.2 (expected 47.9; last 47.7) and flash July Services PMI 51.2 (expected 52.8; last 52.8). July CBI Industrial Trends Orders -30 (expected -27; last -33)
  • France's July Business Survey 96, as expected (last 97). Flash July Manufacturing PMI 48.4 (expected 48.5; last 48.1) and flash July Services PMI 49.7, as expected (last 49.6)
  • Spain's June PPI 0.8% yr/yr (last 0.0%). Q2 Unemployment Rate 10.3% (expected 10.6%; last 11.4%)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.5%
• U.K.'s FTSE 100: +1.0%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: -0.3%
• Spain's IBEX 35: +1.9%