Stock Market Update

The S&P 500 futures continue to trade in line with fair value. 

Equity indices in the Asia-Pacific region had a mostly higher showing on Tuesday with Japan's Nikkei (+0.1%) eking out a fresh record close while South Korea's Kospi (+2.1%) was on the verge of doing the same. The Bank of Japan raised its policy rate by 25 basis points to 1.00% while the Reserve Bank of Australia left its cash rate at 4.35%. Both moves were in line with expectations, causing a limited reaction in the market. The yen and the Aussie are essentially flat while Japan's yields are up a bit after the hike to a level not seen since 1995. The BoJ left the door open for additional hikes while the RBA noted that the economy is decelerating after this year's hikes.

• In economic data:
  • China's May Retail Sales -0.6% m/m (expected -0.3%; last 0.2%), May Industrial Production 4.5% yr/yr (expected 4.4%; last 4.1%), May Fixed Asset Investment -4.1% yr/yr (expected -2.3%; last -1.6%), and May House Prices -3.5% yr/yr (last -3.5%). May Unemployment Rate 5.1% (expected 5.2%; last 5.2%)
  • Hong Kong's May Unemployment Rate 3.7% (last 3.7%)
  • South Korea's May Import Price Index 24.8% yr/yr (last 20.5%) and Export Price Index 46.9% (last 41.3%)
  • New Zealand's May FPI 1.0% m/m (last 0.0%)

---Equity Markets---

• Japan's Nikkei: +0.1%
• Hong Kong's Hang Seng: -1.4%
• China's Shanghai Composite: -0.1%
• India's Sensex: +0.7%
• South Korea's Kospi: +2.1%
• Australia's ASX All Ordinaries: UNCH

Major European indices trade in the green. Germany rejected UniCredit's offer to acquire Commerzbank. British Chancellor Reeves said that she hopes to plan the next budget without raising taxes. Norwegian Air Shuttle will acquire Nordic Leisure Travel for $833 mln.

• In economic data:
  • Eurozone's June ZEW Economic Index 9.5 (expected -7.2; last -9.1). Q1 Eurozone Wages 3.4% yr/yr (last 3.0%) and Q1 Labor Cost Index 3.2% yr/yr (expected 3.3%; last 3.3%)
  • Germany's June ZEW Economic Sentiment 10.5 (expected -5.8; last -10.2) and ZEW Current Conditions -81.0 (expected -77.5; last -77.8)
  • Italy's May CPI 0.4% m/m, as expected (last 1.1%); 3.2% yr/yr, as expected (last 3.2%)

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX: +0.3%
• U.K.'s FTSE 100: +0.6%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +1.1%
• Spain's IBEX 35: +0.2%