Stock Market Update

The S&P 500 futures currently trade 23 points above fair value.

Equity indices in the Asia-Pacific region ended Wednesday on a mixed note. Japan's JGBs struggled overnight, lifting the 30-yr yield to a fresh record near 3.18% while the 20-yr yield climbed to 2.66%, a level not seen in 26 years. Japan's Prime Minister Ishiba repeated that he intends to maintain his post, but his party may call a leadership election. Q2 GDP reports from Australia and South Korea were slightly better than expected.

• In economic data:
  • China's August S&P Global Services PMI 53.0 (expected 52.4; last 52.6)
  • Japan's August Services PMI 53.1 (expected 52.7; last 52.7)
  • South Korea's Q2 GDP 0.7% qtr/qtr (expected 0.6%; last 0.6%); 0.6% yr/yr (expected 0.5%; last 0.5%)
  • India's August Services PMI 62.9 (expected 65.6; last 60.5)
  • Hong Kong's August Manufacturing PMI 50.7 (last 49.2)
  • Australia's Q2 GDP 0.6% qtr/qtr (expected 0.5%; last 0.3%); 1.8% yr/yr (expected 1.6%; last 1.4%). August Services PMI 55.8 (expected 55.1; last 54.1) and August AIG Manufacturing Index -20.9 (last -23.9)

---Equity Markets---

• Japan's Nikkei: -0.9%
• Hong Kong's Hang Seng: -0.6%
• China's Shanghai Composite: -1.2%
• India's Sensex: +0.5%
• South Korea's Kospi: +0.4%
• Australia's ASX All Ordinaries: -1.7%

Major European indices trade mostly higher. The U.K.'s Gilts faced some more pressure today that lifted yields on longer tenors to fresh highs for the year before bouncing. Final August Services PMI readings were mixed relative to expectations with the eurozone reading dipping to 50.5 from 50.7 in the flash reading. European Central Bank policymaker de Cos acknowledged the weakening growth outlook but also said that the central bank's main priority is fighting inflation.

• In economic data:
  • Eurozone's August Services PMI 50.5 (expected 50.7; last 51.0). July PPI 0.4% m/m (expected 0.2%; last 0.8%); 0.2% yr/yr (expected 0.1%; last 0.6%)
  • Germany's August Services PMI 49.3 (expected 50.1; last 50.6)
  • U.K.'s August Services PMI 54.2 (expected 53.6; last 51.8)
  • France's August Services PMI 49.8 (expected 49.7; last 48.5)
  • Italy's August Services PMI 51.5 (expected 52.1; last 52.3)
  • Spain's August Services PMI 53.2 (expected 54.4; last 55.1)

---Equity Markets---

• STOXX Europe 600: +0.6%
• Germany's DAX: +0.5%
• U.K.'s FTSE 100: +0.3%
• France's CAC 40: +0.8%
• Italy's FTSE MIB: flat
• Spain's IBEX 35: flat