Stock Market Update

The S&P 500 futures currently trade 17 points below fair value. 

Equity indices in the Asia-Pacific region began the week on a higher note with China's Shanghai Composite (+1.5%) reaching its best level since 2015 while Hong Kong's Hang Seng (+1.9%) hit its best level since late 2021. Shanghai eased rules pertaining to home purchases in outer suburbs. The approval rating of Japan Prime Minister Ishiba's cabinet has improved to 40%. South Korea's President Lee will meet with President Trump at the White House today. Fitch affirmed India's BBB- rating with a Stable outlook.

• In economic data:
  • Japan's June Leading Index 0.8% m/m (expected 1.3%; last 0.6%) and Coincident Indicator 0.7% m/m (expected 0.8%; last 0.0%)
  • Singapore's July CPI -0.4% m/m (last -0.1%); 0.6% yr/yr (expected 0.7%; last 0.8%). July Core CPI 0.5% yr/yr (last 0.6%)
  • New Zealand's Q2 Retail Sales 0.5% qtr/qtr (expected 0.1%; last 0.8%); 0.7% yr/yr (expected -0.3%; last 0.4%)

---Equity Markets---

• Japan's Nikkei: +0.4%
• Hong Kong's Hang Seng: +1.9%
• China's Shanghai Composite: +1.5%
• India's Sensex: +0.4%
• South Korea's Kospi: +1.3%
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade in the red while the U.K.'s FTSE is closed for a bank holiday. There was some speculation that expectations for a rate cut from the European Central Bank will begin building after a pause in September. Germany's ifo Business Climate Index for August (89.0; expected 88.7) beat expectations by a slight margin with economists reporting some hope for new order growth among manufacturers of capital goods.

• In economic data:
  • Germany's August ifo Business Climate Index 89.0 (expected 88.7; last 88.6). August Current Assessment 86.4 (expected 86.7; last 86.5) and Business Expectations 91.6 (expected 90.2; last 90.8)
  • Swiss Q2 Employment 5.532 mln (last 5.512 mln)
  • Spain's July PPI 0.3% yr/yr (last 0.8%)

---Equity Markets--- 

• STOXX Europe 600: -0.2%
• Germany's DAX: -0.2%
• U.K.'s FTSE 100: HOLIDAY
• France's CAC 40: -0.5%
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: -1.0%