Stock Market Update

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

Equity indices in the Asia-Pacific region began the week on a mostly higher note while South Korea's markets were closed for a holiday. China's growth figures for July were shy of expectations while Japan's flash Q2 GDP report (0.3% qtr/qtr; 0.5% expected) was also underwhelming, hurt by high prices and lower business spending. JGBs retreated despite the miss since the market remains on watch for more rate hikes from the Bank of Japan. President Trump scaled back annual joint U.S.-South Korea military exercises. Alphabet is planning to sell Australia dollar-denominated debt.

• In economic data:
  • China's July Industrial Production 4.5% yr/yr (expected 5.0%; last 5.3%), July Fixed Asset Investment -6.7% yr/yr (expected -6.2%; last -5.7%), July Retail Sales 0.6% yr/yr (expected 1.5%; last 1.0%), July Unemployment Rate 5.2% (expected 5.1%; last 5.0%)
  • Japan's flash Q2 GDP 0.3% qtr/qtr (expected 0.5%; last 0.5%); 1.1% yr/yr (expected 2.0%; last 1.9%). Q2 GDP Capital Expenditure -1.2% qtr/qtr (expected 0.4%; last -1.0%), Q2 GDP External Demand 0.5% qtr/qtr (expected 0.3%; last 0.3%). Q2 GDP Private Consumption 0.0% qtr/qtr (expected 0.5%; last 0.5%). Q2 GDP Price Index 2.6% yr/yr (expected 2.4%; last 3.2%). June Industrial Production 1.9% m/m (expected 1.3%; last 0.1%) and Capacity Utilization 4.1% m/m (last 0.1%)
  • South Korea's July trade surplus $30.39 bln (expected $30.32 bln; last $36.09 bln). July Imports 26.5% yr/yr, as expected (last 30.0%) and Exports 63.0% yr/yr (expected 62.8%; last 70.7%)
  • Singapore's July trade surplus SGD10.72 bln (last surplus of SGD13.87 bln). July non-oil Exports -0.3% m/m (last -8.8%); 24.2% yr/yr (last 24.4%)
  • New Zealand's July Performance of Services Index 50.6 (last 50.9). July Electronic Card Retail Sales 1.3% m/m (last -1.3%); 3.4% yr/yr (last 1.3%). July FPI 0.1% m/m (last 0.6%)

---Equity Markets---

• Japan's Nikkei: +0.7%
• Hong Kong's Hang Seng: +1.3%
• China's Shanghai Composite: +1.4%
• India's Sensex: -0.4%
• South Korea's Kospi: CLOSED
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade near their flat lines while Italy's MIB (+0.4%) outperforms with help from STMicroelectronics, Ferrari, and select bank stocks. Swiss food distributor SIG Group is down more than 15% after announcing an unexpected CEO change. There is growing focus on the U.K.'s property market after Rightmove reported a sharp drop in average new listed asking prices for homes. Fitch affirmed the U.K.'s AA- rating with a Stable outlook.

• No data today

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.5%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: -0.5%