Stock Market Update

Equity futures point to a higher opening this morning as stocks look to bounce back from a mostly lower finish yesterday, as semiconductor stocks once again weighed against relative strength in the broader market.

The momentum trade is showing signs of improvement in the premarket this morning despite a lack of notable catalysts, as NVIDIA's (NVDA 210.87, +2.39, +1.2%) earnings loom after the close tomorrow.

On the macro front, oil is moving firmly lower again today after yesterday's sanction announcement against Iran, while Treasury yields also continue to move lower following the U.S. Treasury's announcement of increased buybacks.

The market is set to receive the August consumer confidence reading and July new home sales data at 10:00 a.m. ET.

In corporate news:

• Oura Health wants to raise $3 billion for its IPO, according to Bloomberg.
• Apple (AAPL 310.28, -0.06, -0.0%) is planning to introduce a new Mac Mini, according to Bloomberg.
• Meta (META 565.00, +5.98, +1.1%) is aiming to introduce the "Hatch" artificial intelligence agent platform in a few weeks, according to The Information.

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: UNCH, China's Shanghai Composite: +0.2%, India's Sensex: +0.4%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: +0.6%.

In news:

• Japan's budget for FY27 assumes record interest costs.
• Japan is reportedly planning to exempt gains from non-core business sales from corporate tax if proceeds are reinvested in acquisitions.
• Separately, Japan is not planning to release crude oil from its national reserve in September or October.
• The Reserve Bank of Australia's latest policy minutes showed readiness to hike if upside risks materialize.
• In China, Chengdu's local government eased housing rules and lowered the minimum down payment ratio.

In economic data:

• Japan's June BoJ Core CPI 2.3% yr/yr (last 2.6%). June Leading Index 116.5 (expected 116.4; last 116.5) and Coincident Indicator 0.6% m/m (expected 0.3%; last -0.2%)
• Hong Kong's July trade deficit HKD4.9 bln (last deficit of HKD52.0 bln). July Imports 41.0% m/m (last 45.4) and Exports 50.7% m/m (last 53.4%)
• South Korea's August Consumer Confidence 104.5 (last 106.8)

Major European indices trade in the green with Germany's DAX (+0.8%) showing relative strength. STOXX Europe 600: +0.5%, Germany's DAX: +0.8%, U.K.'s FTSE 100: +0.2%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.3%.

In news:

• Germany's Q2 GDP growth was revised up to 0.3% from 0.2% and the ifo Business Climate Index (88.8; expected 87.2) beat expectations, showing some overall improvement in the German economy.
• Separately, German Chancellor Merz said that his cabinet will consider ways to protect domestic industry.
• British Prime Minister Burnham will reportedly not rule out a tax hike in the Autumn budget.

In economic data:

• Germany's Q2 GDP 0.3% qtr/qtr (expected 0.2%; last 0.4%); 1.0% yr/yr (expected 0.9%; last 0.7%). August ifo Business Climate Index 88.8 (expected 87.2; last 86.7). August Current Assessment 88.5 (expected 87.0; last 86.5) and Business Expectations 89.1 (expected 87.5; last 86.8)
• France's August Consumer Confidence 86 (expected 87; last 86)
• Spain's July PPI 9.2% yr/yr (last 7.0%)