Stock Market Update

The S&P 500 futures currently trade 47 points below fair value. 

Equity indices in the Asia-Pacific region had a mixed showing on Wednesday. SK Hynix denied speculation that it is looking to purchase a chip fabrication facility in Ohio from Intel. Japan is reportedly looking to relax lending rules for banks while also encouraging pension funds to invest in alternative assets. China's Foreign Minister Yi met with Secretary of State Rubio in Manila. Bank Indonesia left its policy rate at 5.75% against some expectations for a hike.

• In economic data:
  • Japan's June trade deficit JPY880 bln (expected deficit of JPY560 bln; last deficit of JPY220 bln). June Imports 25.4% yr/yr (expected 21.0%; last 12.5%) and Exports 19.3% yr/yr (expected 18.6%; last 16.8%)
  • South Korea's June PPI 0.0% m/m (last 1.0%); 8.6% yr/yr (last 8.6%)
  • Australia's June MI Leading Index 0.0% m/m (last -0.1%)
  • New Zealand's June Credit Card Spending 3.1% yr/yr (last 4.2%)

---Equity Markets---

• Japan's Nikkei: -0.3%
• Hong Kong's Hang Seng: -1.0%
• China's Shanghai Composite: +0.1%
• India's Sensex: -0.9%
• South Korea's Kospi: +0.7%
• Australia's ASX All Ordinaries: +0.3%

Major European indices trade in the green. The U.K.'s inflation report for June was fairly close to expectations and had no meaningful impact on the market's expectations for the Bank of England to keep its bank rate at 3.75% next week. British Prime Minister Burnham will seek to reduce taxes for hospitality businesses while also calling for fiscal restraint. The French parliament banned the use of social media for children under 15.

• In economic data:
  • U.K.'s June CPI 0.1% m/m, as expected (last 0.2%); 2.6% yr/yr (expected 2.7%; last 2.8%). June Core CPI 0.3% m/m (last 0.3%); 2.6% yr/yr (expected 2.5%; last 2.6%). June Input PPI -2.0% m/m (expected -2.7%; last 0.6%) and Output PPI 0.0% m/m (expected -0.1%; last 0.3%). June House Price Index 2.7% (expected 3.2%; last 3.8%)

---Equity Markets---

• STOXX Europe 600: +0.6%
• Germany's DAX: +0.5%
• U.K.'s FTSE 100: +1.4%
• France's CAC 40: +0.9%
• Italy's FTSE MIB: +0.9%
• Spain's IBEX 35: +1.2%