Stock Market Update

The S&P 500 futures currently trade 11 points below fair value. 

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note with South Korea's Kospi (-10.8%) plunging to its lowest level since mid-April with SK Hynix falling nearly 15% ahead of tomorrow's release of its quarterly results. South Korean regulators are expected to announce deposit requirements for ETF purchases on Friday. There was some concern about China's reported mass production of Deep Ultraviolet chip fabrication tools, though that technology is still behind the latest Extreme Ultraviolet technology used by ASML. Japan's Prime Minister Takaichi plans to lower the food tax to 1% from 8% and is likely to raise the minimum wage.

• In economic data:
  • Japan's May BoJ Core CPI 2.7% yr/yr (last 2.7%)
  • South Korea's July Consumer Confidence 106.8 (last 106.6)

---Equity Markets---

• Japan's Nikkei: -4.0%
• Hong Kong's Hang Seng: +0.4%
• China's Shanghai Composite: -1.2%
• India's Sensex: -0.1%
• South Korea's Kospi: -10.8%
• Australia's ASX All Ordinaries: +0.5%

Major European indices trade on a mostly lower note. The Swiss National Bank is expected to keep its rate at zero until the end of next year. Several large companies reported their results with Mercedes beating expectations but trimming its guidance. Military contractor Safran raised its guidance for the year while Orange and Barclays beat their quarterly expectations and raised their outlooks. Unilever reported strong volume growth for the quarter.

• In economic data:
  • France's July Consumer Confidence 86 (expected 85; last 84)
  • Italy's non-EU trade surplus EUR2.55 bln (last surplus of EUR3.84 bln)
  • Spain's June Retail Sales 0.5% yr/yr (last 1.3%) and Q2 Unemployment Rate 9.87% (expected 10.1%; last 10.8%)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -0.4%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: -0.7%
• Spain's IBEX 35: -0.2%