Stock Market Update

The S&P 500 futures currently trade 18 points below fair value. 

Equity indices in the Asia-Pacific region began the week on a broadly lower note with South Korea's Kospi (-3.1%) showing relative weakness. Japan's Ministry of Finance is expected to set the assumed interest rate for FY27/28 at 3.8% for debt cost calculations. Anticipation is building ahead of Thursday's scheduled speech from Bank of Japan Deputy Governor Himino, who is likely to hint at more rate hikes. Alibaba lost nearly 10% in Hong Kong after pricing a $10 bln share offering.

• In economic data:
  • Singapore's July CPI -0.2% m/m (last 0.0%); 2.2% yr/yr (last 1.9%)
  • New Zealand's Q2 Retail Sales -0.5% qtr/qtr (expected 0.1%; last 1.0%) and Core Retail Sales 0.7% qtr/qtr (expected 0.3%; last 1.1%)

---Equity Markets---

• Japan's Nikkei: -0.7%
• Hong Kong's Hang Seng: -1.9%
• China's Shanghai Composite: -0.6%
• India's Sensex: -0.2%
• South Korea's Kospi: -3.1%
• Australia's ASX All Ordinaries: +0.5%

Major European indices trade near their flat lines with Spain's IBEX (+0.4%) showing relative strength. Overall action has been restrained by anticipation ahead of Treasury Secretary Bessent's press conference about the economic pressure campaign against Iran. British Prime Minister Burnham visited Ukraine, pledging additional military help. European Central Bank policymaker Cipollone said that he does not see any signs of stagflation.

• 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: -0.3%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: +0.4%