Stock Market Update

Equity futures have steadily increased, with the S&P 500 futures trading 18 points above fair value. 

Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. China's CPI for June deflated for the sixth time over the past eight months, pointing to ongoing weakness in consumption, while PPI deflated for the 33rd consecutive month. The Reserve Bank of New Zealand left its official cash rate at 3.25%, as expected, though there are high expectations for another rate cut in August.

• In economic data:
  • China's June CPI -0.1% m/m (expected 0.0%; last -0.2%); 0.1% yr/yr (expected -0.1%; last -0.1%). June PPI -3.6% yr/yr (expected -3.2%; last -3.3%)
  • Japan's June Machine Tool Orders -0.5% yr/yr (expected 3.4%; last 7.7%)
  • Australia's May Building Approvals 3.2% m/m, as expected (last -4.1%) and Private House Approvals 0.5% m/m, as expected (last 5.9%)

---Equity Markets---

• Japan's Nikkei: +0.3%
• Hong Kong's Hang Seng: -1.1%
• China's Shanghai Composite: -0.1%
• India's Sensex: -0.2%
• South Korea's Kospi: +0.6%
• Australia's ASX All Ordinaries: -0.6%

Major European indices trade in the green. The EU is reportedly willing to accept a temporary 10% reciprocal tariff while continuing trade discussions with the Trump administration. European Commission President von der Leyen said that the EU is ready for all potential outcomes. British advertiser WPP is sharply lower after cutting its guidance for the year.

• No data today

---Equity Markets---

• STOXX Europe 600: +0.8%
• Germany's DAX: +1.2%
• U.K.'s FTSE 100: +0.5%
• France's CAC 40: +1.3%
• Italy's FTSE MIB: +0.7%
• Spain's IBEX 35: +1.0%