Stock Market Update

S&P 500 futures point to a modestly lower open after mixed trade in Asia and Europe.

Equity indices in the Asia-Pacific region began the week on a mixed note. China's Manufacturing (49.8) and Non-Manufacturing (49.0) PMI readings remained in contractionary territory in August. The approval rating of Japan Prime Minister Takaichi's cabinet remained at 53%, according to the latest poll from Asahi. India and Brazil are looking to increase their bilateral trade to $30 bln by 20230. The Reserve Bank of New Zealand will release its latest policy Statement on Wednesday, which could call for a rate hike.

• In economic data:
  • China's August Manufacturing PMI increased to 49.8 (expected 49.5; last 49.2).
  • China's August Non-Manufacturing PMI was unchanged at 49.0 (expected 49.5; last 49.0).
  • Japan's July Retail Sales increased 4.0% yr/yr (expected 3.2%; last 0.6%).
  • Japan's July Housing Starts increased 8.2% yr/yr (expected 7.2%; last 18.6%).
  • Japan's July Construction Orders decreased 13.4% yr/yr (last 2.3%).
  • South Korea's July Retail Sales decreased 2.4% m/m (last 2.7%).
  • South Korea's July Service Sector Output decreased 1.3% m/m (last 0.7%).
  • South Korea's July Industrial Production increased 0.2% m/m (last 6.7%) and 3.6% yr/yr (last 6.0%).
  • Hong Kong's July Retail Sales increased 4.5% yr/yr (last 4.6%).
  • Australia's Q2 Company Gross Operating Profits increased 1.8% qtr/qtr (expected 2.0%; last -1.5%).
  • Australia's Q2 Pre-tax Profits increased 12.5% qtr/qtr (last -4.1%).
  • Australia's July Private Sector Credit increased 0.6% m/m (expected 0.7%; last 0.8%).
  • Australia's July Housing Credit increased 0.5% m/m (last 0.6%).
  • Australia's August MI Inflation Gauge increased 0.5% m/m (last 1.0%).
  • New Zealand's August ANZ Business Confidence decreased to 53.7 (last 56.1).
  • India's Q1 GDP increased 7.8% yr/yr (expected 7.1%; last 7.8%).

---Equity Markets---

• Japan's Nikkei: -0.1%
• Hong Kong's Hang Seng: -0.1%
• China's Shanghai Composite: +0.9%
• India's Sensex: -0.4%
• South Korea's Kospi: +0.5%
• Australia's ASX All Ordinaries: -0.3%

Major European indices are mixed while the U.K.'s FTSE is closed for a Bank Holiday. Germany's flash CPI for August will be released at 8:00 ET and it is expected to show a month-over-month increase of 0.3% with the year-over-year rate accelerating to 3.0% from 2.8%. Iceland voted against reopening accession talks with the European Union. Fitch affirmed France's A+ rating with a Stable outlook.

• In economic data:
  • Spain's June current account surplus widened to EUR2.41 bln from EUR1.84 bln.

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -0.7%
• France's CAC 40: +0.2%
• Italy's FTSE MIB: +0.4%
• Spain's IBEX 35: +0.2%