Stock Market Update

The S&P 500 futures currently trade 17 points below fair value. 

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note though South Korea's Kospi (-6.0%) continued struggling with SK Hynix falling nearly 10% after missing earnings expectations while tech stocks in Japan also had a poor showing. Separately, an earthquake in Japan prompted multiple companies to close their facilities for inspections. The Trump administration banned imports of new Chinese robots and power inverters.

• In economic data:
  • Australia's Q2 CPI 0.6% qtr/qtr (expected 0.7%; last 1.4%); 3.9% yr/yr (expected 4.1%; last 4.1%). June Monthly CPI Indicator 3.8% (expected 4.0%; last 4.0%)

---Equity Markets---

• Japan's Nikkei: -1.5%
• Hong Kong's Hang Seng: +2.0%
• China's Shanghai Composite: +0.4%
• India's Sensex: +1.2%
• South Korea's Kospi: -6.0%
• Australia's ASX All Ordinaries: +1.0%

Major European indices trade on a mostly lower note while the U.K.'s FTSE (+0.3%) outperforms with help from strong results from Standard Chartered while UBS and Deutsche Bank also reported good earnings. Porsche's operating profit for the first half of 2026 was better than expected while Hermes has fallen to its lowest level since late 2022 after underwhelming results. European Central Bank policymaker Patsalides said that the outcome of the September policy meeting remains uncertain.

• In economic data:
  • Germany's June Import Price Index -0.7% m/m, as expected (last 0.7%); 6.1% yr/yr (expected 6.0%; last 6.8%)
  • U.K.'s June Mortgage Approvals 58,200 (expected 57,000; last 56,570), June Mortgage Lending GBP7.73 bln (expected GBP3.95 bln; last GBP3.27 bln), and June net lending to individuals GBP9.50 bln (expected GBP5.50 bln; last GBP4.60 bln)
  • Italy's May Industrial Sales 0.6% m/m (last -0.2%); 5.3% yr/yr (last 2.7%)
  • Swiss July ZEW Expectations 10.0 (last -25.0)

---Equity Markets---

• STOXX Europe 600: -0.2%
• Germany's DAX: UNCH
• U.K.'s FTSE 100: +0.3%
• France's CAC 40: -0.7%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: -1.7%