Stock Market Update

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

Equity indices in the Asia-Pacific region started the week on a mostly higher note with Japan's Nikkei (+1.6%) and South Korea's Kospi (+0.7%) settling at fresh records. Reports from China suggest that consumer demand was a little light on Friday, which was the country's second-largest shopping festival of the year. The People's Bank of China left its one-year and five-year loan prime rates at their respective 3.50% and 5.00%. Nikkei reported that Japan plans to invest JPY10.5 trln in AI-related projects by 2040. Expectations for another rate hike from the Bank of Japan are on the rise, with the market growing confident that the increase will be announced no later than October.

• In economic data:
  • China's May FDI -8.6% YTD (last -10.3%)
  • New Zealand's May Credit Card Spending 5.1% yr/yr (last 3.1%)

---Equity Markets---

• Japan's Nikkei: +1.6%
• Hong Kong's Hang Seng: -0.7%
• China's Shanghai Composite: +1.8%
• India's Sensex: +0.4%
• South Korea's Kospi: +0.7%
• Australia's ASX All Ordinaries: -0.2%

Major European indices trade in mixed fashion. Disgraced British Prime Minister Starmer finally announced his resignation earlier today. There is a high likelihood that Greater Manchester Mayor Burnham will run to become the next leader of the Labour party, which would also make him the seventh prime minister in the past ten years. Discount carrier EasyJet rejected three takeover offers from a U.S. investor.

• In economic data:
  • Switzerland's May M3 Money Supply CHF1.23 trln (last CHF1.23 trln)

---Equity Markets---

• STOXX Europe 600: UNCH
• Germany's DAX: UNCH
• U.K.'s FTSE 100: +0.6%
• France's CAC 40: -0.5%
• Italy's FTSE MIB: -0.4%
• Spain's IBEX 35: +0.8%