Stock Market Update

The S&P 500 futures currently trade 36 points above fair value. 

Equity indices in the Asia-Pacific region began the week on a mostly higher note while Japan's Nikkei (-1.3%) fell to its lowest level in nearly two weeks. Japan's Prime Minister Ishiba said that the Japanese government is ready to compile an extra budget if necessary. The Wall Street Journal reported that China is holding back the supply of critical minerals to Western defense contractors. Officials from Japan and South Korea said that trade deals with the U.S. are not on paper yet and that details still need to be ironed out.

• In economic data:
  • Japan's July Monetary Base -3.7% yr/yr (last -3.3%)
  • Australia's July MI Inflation Gauge 0.9% m/m (last 0.1%)

---Equity Markets---

• Japan's Nikkei: -1.3%
• Hong Kong's Hang Seng: +0.9%
• China's Shanghai Composite: +0.7%
• India's Sensex: +0.5%
• South Korea's Kospi: +0.9%
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade in the green. BP announced that it made its largest oil and gas discovery in 25 years off the coast of Brazil. There are growing expectations that the Bank of England will start implementing 25-basis point cuts to its bank rate on a quarterly basis. Switzerland's President Keller-Sutter said that her government reached out to the Trump administration after the U.S. announced a 39% tariff on imports from Switzerland.

• In economic data:
  • Eurozone's August Sentix Investor Confidence -3.7 (expected 6.2; last 4.5)
  • Spain's July Unemployment Change -1,400 (expected -21,300; last -48,900)
  • Swiss July CPI 0.0% m/m (expected -0.2%; last 0.2%); 0.2% yr/yr (expected 0.1%; last 0.1%). July Manufacturing PMI 48.8 (expected 49.8; last 49.6)

---Equity Markets---

• STOXX Europe 600: +0.7%
• Germany's DAX: +1.2%
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +0.9%
• Italy's FTSE MIB: +1.9%
• Spain's IBEX 35: +1.4%