Stock Market Update

The S&P 500 futures currently trade 26 points below fair value.

Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Flash PMI readings for August showed the second consecutive month of contracting activity in Japan's manufacturing sector while activity in India and Australia accelerated. China is considering using yuan-backed stablecoins for settling cross-border trade. South Korea's exports through the first 20 days of August were up 7.6% yr/yr with chip exports jumping 29.5%.

• In economic data:
  • Japan's August flash Manufacturing PMI 49.9 (expected 49.2; last 48.9) and August flash Services PMI 52.7 (last 53.6)
  • South Korea's July PPI 0.4% m/m (last 0.1%); 0.5% yr/yr (last 0.5%)
  • India's August flash Manufacturing PMI 59.8 (expected 59.1; last 59.1) and flash Services PMI 65.6 (expected 60.3; last 60.5)
  • Hong Kong's July CPI 0.6% m/m (last 0.0%); 1.0% yr/yr (expected 0.8%; last 1.4%)
  • Australia's August flash Manufacturing PMI 52.9 (last 51.3) and August flash Services PMI 55.1 (last 54.1). MI Inflation Expectations 3.9% (last 4.7%)
  • New Zealand's July trade deficit NZD578 mln (expected surplus of NZD70 mln; last surplus of NZD203 mln). July Credit Card Spending 1.4% yr/yr (last 0.9%)

---Equity Markets---

• Japan's Nikkei: -0.7%
• Hong Kong's Hang Seng: -0.2%
• China's Shanghai Composite: +0.1%
• India's Sensex: +0.2%
• South Korea's Kospi: +0.4%
• Australia's ASX All Ordinaries: +1.2%

Major European indices trade in the red. Flash August Manufacturing and Services PMI readings were mostly ahead of expectations with readings from Germany and France essentially showing a standstill in both sectors. The Manufacturing PMI reading for the eurozone (50.5) came in above 50.0, indicating the first expansion in activity in over three years. BMW and Mercedes may work together on engine development. Defense contractor Rheinmetall has been boosted by indications that European nations will be responsible for the bulk of security guarantees provided to Ukraine.

• In economic data:
  • Eurozone's August flash Manufacturing PMI 50.5 (expected 49.5; last 49.8) and flash Services PMI 50.7 (expected 50.8; last 51.0)
  • Germany's August flash Manufacturing PMI 49.9 (expected 48.8; last 49.1) and flash Services PMI 50.1 (expected 50.4; last 50.6)
  • U.K.'s June Public Sector Net Borrowing GBP1.05 bln (expected GBP2.10 bln; last GBP22.56 bln). August flash Manufacturing PMI 47.3 (expected 48.2; last 48.0) and flash Services PMI 53.6 (expected 51.8; last 51.8). August CBI Industrial Trends Orders -33 (expected -28; last -30)
  • France's August flash Manufacturing PMI 49.9 (expected 48.2; last 48.2) and flash Services PMI 49.7 (expected 48.5; last 48.5)
  • Swiss July trade surplus CHF4.59 bln (expected surplus of CHF5.15 bln; last surplus of CHF5.73 bln)

---Equity Markets---

• STOXX Europe 600: -0.4%
• Germany's DAX: -0.3%
• U.K.'s FTSE 100: -0.2%
• France's CAC 40: -0.7%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: -0.6%