Stock Market Update

The S&p 500 futures currently trade 2 points below fair value. 

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note while markets in India were closed for a holiday. Chipmakers in Japan had a strong showing ahead of tonight's release of quarterly results from chip giant NVIDIA (NVDA). Australia's CPI for July (2.8% yr/yr; expected 2.3%) was much hotter than expected due to sharp increases in prices of housing, food, and alcohol/tobacco. Sinolink Securities is expected to raise the funding margin deposit ratio for new clients to 100% amid concerns that a bubble is forming in Chinese equities.

• In economic data:
  • China's July Industrial Profit -1.7% YTD (last -1.8%)
  • South Korea's August Manufacturing BSI Index 70 (last 68)
  • Australia's July MI Leading Index 0.1% m/m (last 0.0%). July Monthly CPI Indicator 2.8% yr/yr (expected 2.3%; last 1.9%). Q2 Construction Work Done 3.0% qtr/qtr (expected 1.0%; last -0.3%)

---Equity Markets---

• Japan's Nikkei: +0.3%
• Hong Kong's Hang Seng: -1.3%
• China's Shanghai Composite: -1.8%
• India's Sensex: HOLIDAY
• South Korea's Kospi: +0.3%
• Australia's ASX All Ordinaries: +0.3%

Major European indices are mixed. Germany's consumer confidence weakened in September (to -23.6 from -21.7) due to weak household spending and low expectations for a recovery. Meanwhile, Switzerland's ZEW Expectations survey plunged to -53.8 from 2.4 due to concerns about new trade barriers with the U.S. There are growing concerns that France will need a bailout from the IMF if the country's prime minister does not survive the upcoming confidence vote. Hungary's central bank left its policy rate unchanged at 6.50%.

• In economic data:
  • Germany's September GfK Consumer Climate -23.6 (expected -21.5; last -21.7)
  • U.K.'s August CBI Distributive Trades Survey -32 (expected -26; last -34)
  • Swiss August ZEW Expectations -53.8 (last 2.4)

---Equity Markets---

• STOXX Europe 600: flat
• Germany's DAX: -0.5%
• U.K.'s FTSE 100: -0.2%
• France's CAC 40: +0.4%
• Italy's FTSE MIB: -0.4%
• Spain's IBEX 35: -0.5%