Stock Market Update

The S&P 500 futures currently trade 38 points above fair value.

Equity indices in the Asia-Pacific region ended Thursday on a higher note. President Trump threatened to impose a 100% tariff on imports of semiconductors and he also threatened to impose new tariffs on imports from China if China continues buying oil from Russia. China's trade surplus for July was smaller than expected due to unexpected growth in imports. China Securities Journal reported that leveraged bets on Chinese equities are at their highest level in a decade.

• In economic data:
  • China's July trade surplus $98.24 bln (expected surplus of $105.20 bln; last surplus of $114.77 bln). July Imports 4.1% yr/yr (expected -1.0%; last 1.1%) and Exports 7.2% yr/yr (expected 5.4%; last 5.8%)
  • Japan's June Leading Index 106.1 (expected 106.0; last 104.8) and Coincident Indicator 0.8% m/m (last 0.0%)
  • South Korea's June Current Account surplus $14.27 bln (last surplus of $10.14 bln)
  • Australia's June Building Approvals 11.9% m/m, as expected (last 3.2%) and June Private House Approvals -2.0% m/m, as expected (last 0.5%). June trade surplus AUD5.365 bln (expected surplus of AUD3.180 bln; last surplus of AUD1.604 bln). June Imports -3.1% m/m (last 3.3%) and Exports 6.0% m/m (last -3.0%)
  • New Zealand's Q3 Inflation Expectations 2.3% (last 2.3%)

---Equity Markets---

• Japan's Nikkei: +0.7%
• Hong Kong's Hang Seng: +0.7%
• China's Shanghai Composite: +0.2%
• India's Sensex: +0.1%
• South Korea's Kospi: +0.9%
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade on a mostly higher note while the U.K.'s FTSE (-0.7%) underperforms. The Bank of England voted 5-4 in favor of a 25-basis point rate cut to 4.00%, which was expected. Maersk CEO said that the shipping industry continues experiencing uncertainty, though freight rates and demand from China have been resilient. Switzerland's federal council will hold an extraordinary meeting after President Keller-Sutter returned from Washington without a trade deal.

• In economic data:
  • Germany's June Industrial Production -1.9% m/m (expected -0.4%; last -0.1%); -3.5% yr/yr (expected -0.6%; last 0.0%). June trade surplus EUR14.9 bln (expected surplus of EUR17.8 bln; last surplus of EUR18.6 bln). June Imports 4.2% m/m (expected 1.0%; last -3.9%) and Exports 0.8% m/m (expected 0.5%; last -1.4%)
  • U.K.'s July Halfiax House Price Index 0.4% m/m (expected 0.1%; last 0.1%); 2.4% yr/yr (last 2.7%)
  • France's June Current Account deficit EUR3.40 bln (last deficit of EUR2.60 bln). June trade deficit EUR7.6 bln (expected deficit of EUR7.5 bln; last deficit of EUR7.6 bln)
  • Swiss July Unemployment Rate 2.9% (last 2.9%)

---Equity Markets---

• STOXX Europe 600: +1.1%
• Germany's DAX: +1.9%
• U.K.'s FTSE 100: -0.7%
• France's CAC 40: +1.3%
• Italy's FTSE MIB: +0.7%
• Spain's IBEX 35: +0.8%