Stock Market Update

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

Equity indices in the Asia-Pacific region had a mixed showing on Thursday with most markets ending the session within 0.5% of their flat lines. There was ongoing focus on the Middle East after the U.S. bombed multiple targets in Iran, though oil has remained below $90/bbl. Bank of Japan Governor Ueda will miss next week's policy meeting due to hospitalization, but the market remains confident that a rate hike will be announced. South Korea's exports were up 86% yr/yr through the first ten days of June with chip exports jumping 206%.

• In economic data:
  • Japan's Q2 BSI Large Manufacturing Conditions -1.8 (expected 4.2; last 3.8)
  • South Korea's May Unemployment Rate 2.8% (last 2.8%)
  • Australia's June MI Inflation Expectations 5.5% (last 5.6%)

---Equity Markets---

• Japan's Nikkei: +0.1%
• Hong Kong's Hang Seng: -0.7%
• China's Shanghai Composite: -0.2% 
• India's Sensex: -0.2%
• South Korea's Kospi: +0.4%
• Australia's ASX All Ordinaries: -0.2%

Major European indices trade in the green ahead of the European Central Bank's rate decision at 8:15 ET, which is expected to be a hike. The market will be curious to hear whether ECB President Lagarde hints at additional increases in the coming months or signals that a one-time adjustment is seen as sufficient. Germany's farm cooperative increased its wheat harvest forecast for the year due to good weather.

• No data today

---Equity Markets---

• STOXX Europe 600: +0.8%
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: +0.7%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +1.2%
• Spain's IBEX 35: +1.0%