Stock Market Update

[BRIEFING.COM] S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -117.00. The S&P 500 futures currently trade five points below fair value. 

Equity indices in the Asia-Pacific region had a mostly higher finish to the week with South Korea's Kospi (+2.5%) narrowing this week's loss to 7.6% while markets in New Zealand were closed for a holiday. The Japanese yen and JGBs climbed after Finance Minister Katayama said that she will encourage pension funds to increase their exposure to domestic assets. The Japanese government is expected to release the framework for its economic plan on July 21. Malaysia's central bank left its policy rate at 2.75%, as expected.

• In economic data:
  • Japan's June PPI 0.4% m/m (expected 0.3%; last 1.1%); 7.1% yr/yr (expected 6.8%; last 6.6%)

---Equity Markets---

• Japan's Nikkei: +1.2% 
• Hong Kong's Hang Seng: +0.6% 
• China's Shanghai Composite: -1.0% 
• India's Sensex: +1.1% 
• South Korea's Kospi: +2.5% 
• Australia's ASX All Ordinaries: +0.5%

Major European indices are looking for a higher finish to the week. Expectations for a September rate hike from the European Central Bank are on the rise due to the understanding that the U.S. ceasefire with Iran is essentially over. Bank of France raised its domestic growth forecast for Q2 to 0.2% from 0.0% while Bank of England Chief Economist Pill said that the bank rate will need to be raised this year.

• In economic data:
  • Germany's June CPI -0.3% m/m, as expected (last -0.2%); 2.3% yr/yr, as expected (last 2.6%)
  • France's June CPI -0.3% m/m (expected -0.2%; last 0.1%); 1.8% yr/yr, as expected (last 2.4%)
  • Italy's May Industrial Production -0.3% m/m (expected -0.1%; last 0.4%); 1.1% yr/yr (expected 1.3%; last 1.1%)
  • Swiss June SECO Consumer Climate -36 (expected -35; last -38)

---Equity Markets---

• STOXX Europe 600: +0.2% 
• Germany's DAX: +0.1% 
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: unch 
• Italy's FTSE MIB: +0.6% 
• Spain's IBEX 35: +0.5%