Stock Market Update

The S&P 500 futures currently trade 28 points above fair value. 

Equity indices in the Asia-Pacific region were mixed on Wednesday, with South Korea's Kospi (+3.7%) the standout thanks to leadership from its semiconductor components and the positive AI vibes flowing from CoreWeave's earnings results. There was also a report from Asia Business Daily that Temasek, Singapore's sovereign wealth fund, is looking at investing in Samsung and SK Hynix. A contention by Bank of Korea's Deputy Governor Sangdai that there will likely be more rate hikes due to persistent core inflation and strong economic growth did not upset the Kospi's bullish bias. USD/JPY -0.1% to 159.16, with the yen weakening from a post-intervention high of 155.23 seen on August 3. 

In economic data:

• Japan's August Reuters Tankan Index 18 (prior 13)
• South Korea's July Unemployment Rate 2.8% (prior 2.7%)
• India's July CPI 4.45% yr/yr (4.50% expected; prior 4.38%)

---Equity Markets---

• Japan's Nikkei: +0.8%
• Hong Kong's Hang Seng: -0.8%
• China's Shanghai Composite: +0.3%
• India's Sensex: -0.2%
• South Korea's Kospi: +3.7%
• Australia's All Ordinaries: -0.4%

Major European indices are mostly higher. Germany's CPI held at 2.8% yr/yr with the final July report, while Italy's CPI ticked up slightly to 2.9% from the preliminary report of 2.8%, leaving them well ahead of the ECB's 2% inflation target. Markets are also keeping tabs on Brent crude prices, which have moved from roughly $80.00/bbl at the start of the month to $89.04/bbl today as the U.S. and Iran dig in with their respective demands for getting to a peace agreement and full reopening of the Strait of Hormuz.

In economic data:

• Germany's July CPI 0.8% m/m (expected 0.8%; prior -0.3%) and 2.8% yr/yr (expected 2.8%; prior 2.3%). June Current Account Balance EUR19.0 bln (prior EUR9.0 bln).
• Italy's July CPI 0.3% m/m (expected 0.2%; prior 0.0%) and 2.9% yr/yr (expected 2.8%; prior 3.0%)

---Equity Markets---

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