Stock Market Update

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

Equity indices in the Asia-Pacific region ended the week on a mostly higher note while markets in South Korea and India were closed for holidays. China's growth data for July disappointed across the board with the unemployment rate increasing to 5.2% from 5.0% (expected 5.1%). Meanwhile, Japan's flash Q2 GDP (0.3% qtr/qtr; expected 0.1%) beat expectations by a solid margin. China's government reportedly warned foreign firms against stockpiling rare earth elements. Japanese advertiser Dentsu reported mixed results an announced job cuts. Standard & Poor's raised India's rating to BBB from BBB-.

• In economic data:
  • China's July Industrial Production 5.7% yr/yr (expected 6.0%; last 6.8%), July Retail Sales 3.7% yr/yr (expected 4.6%; last 4.8%), July Fixed Asset Investment 1.6% yr/yr (expected 2.7%; last 2.8%), and July House Prices -2.8% yr/yr (last -3.2%). July Unemployment Rate 5.2% (expected 5.1%; last 5.0%)
  • Japan's Q2 GDP 0.3% qtr/qtr (expected 0.1%: last 0.1%); 1.0% yr/yr (expected 0.4%; last 0.6%). Q2 GDP Capital Expenditure 1.3% qtr/qtr (expected 0.5%; last 1.0%), Q2 GDP External Demand 0.3% qtr/qtr (expected 0.2%: last -0.8%), Q2 GDP Private Consumption 0.2% qtr/qtr (expected 0.1%; last 0.2%), and Q2 GDP Price Index 3.0% yr/yr (expected 3.1%; last 3.3%). June Industrial Production 2.1% m/m (expected 1.7%; last -0.1%) and Capacity Utilization -1.0% m/m (last 2.0%)
  • Hong Kong's Q2 GDP 0.4% qtr/qtr, as expected (last 1.9%); 3.1% yr/yr, as expected (last 3.0%)
  • New Zealand's July Business PMI 52.8 (last 48.8), July FPI 0.7% m/m (last 1.2%), and July Visitor Arrivals -2.5% m/m (last -0.5%)

---Equity Markets---

• Japan's Nikkei: +1.7% (+3.7% for the week)
• Hong Kong's Hang Seng: -1.0% (+1.7% for the week)
• China's Shanghai Composite: +0.8% (+1.7% for the week)
• India's Sensex: HOLIDAY (+0.9% for the week)
• South Korea's Kospi: HOLIDAY (+0.5% for the week)
• Australia's ASX All Ordinaries: +0.7% (+1.5% for the week)

Major European indices are seeking a higher finish to the week while Italy's MIB is closed for Assumption Day. There is some hope that President Trump's scheduled meeting with Russia's President Putin at 15:30 ET will eventually lead to peace in Ukraine. Conglomerate ThyssenKrupp may sell a stake in its warship until to the German government. Supplier of electric cables, NKT, reported strong results and raised its outlook.

• In economic data:
  • Swiss Q2 GDP 0.1% qtr/qtr (last 0.5%)

---Equity Markets---

• STOXX Europe 600: +0.1% (+1.4% week-to-date)
• Germany's DAX: +0.1% (+1.0% week-to-date)
• U.K.'s FTSE 100: -0.2% (+0.7% week-to-date)
• France's CAC 40: +0.5% (+2.2% week-to-date)
• Italy's FTSE MIB: HOLIDAY (+2.5% week-to-date)
• Spain's IBEX 35: +0.6% (+3.0% week-to-date)