Stock Market Update

The S&P 500 futures currently trade 21 points below fair value. 

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note, though gains were limited to no more than 1.0%. Japan's Corporate Services Price Index grew 3.6% yr/yr, representing the fastest pace of increase since early 2015, while Australia's July CPI decelerated to 3.5% yr/yr from 3.8% against expectations for a bigger slowdown. Bank of Japan Governor Ueda will not attend the Jackson Hole Economic Symposium. Policymaker Tamura, who is a known hawk, will represent the BoJ at the upcoming meeting.

• In economic data:
  • Japan's July Corporate Services Price Index 3.6% yr/yr (expected 3.2%; last 3.4%)
  • Australia's July MI Leading Index 0.0% m/m (last 0.1%), July CPI 3.5% yr/yr (expected 3.3%; last 3.8%), and Q2 Construction Work Done -2.1% qtr/qtr (expected 0.5%; last 4.3%)
  • Singapore's July Industrial Production 2.3% m/m (expected 3.0%; last -7.0%); 6.8% yr/yr (expected 6.7%: last 7.5%)

---Equity Markets---

• Japan's Nikkei: +0.6%
• Hong Kong's Hang Seng: +0.6%
• China's Shanghai Composite: +0.6%
• India's Sensex: -0.2%
• South Korea's Kospi: +1.0%
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade near their flat lines while France's CAC (+0.4%) outperforms slightly with leadership from ArcelorMittal and some industrial names. Expectations for a September rate hike from the ECB are solidifying, but additional increases are not expected at this time. ECB policymaker Schnabel said that rates must rise with the extent of the increase determined by data. Softwareone has climbed more than 10% after reporting strong results for the first half of the year.

• In economic data:
  • U.K.'s August CBI Distributive Trades Survey -48 (expected -35; last -26)
  • Swiss August ZEW Expectations 12.1 (last 10.0)

---Equity Markets---

• STOXX Europe 600: +0.2%
• Germany's DAX: +0.3%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +0.7%
• Spain's IBEX 35: +0.6%