Stock Market Update

The S&P 500 futures currently trade three points above fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. SK Hynix is negotiating the terms of its bonus payout plan with its workers union to avoid a potential strike. There was speculation that Japan's Ministry of Finance intervened in the foreign exchange market once again on Monday. China Securities Times expects the domestic property market to continue recovering during the second half of the year. Westpac abandoned its forecast for two more rate hikes from the Reserve Bank of Australia due to softening inflation.

• In economic data:
  • Japan's July Monetary Base -13.8% yr/yr (expected -13.0%; last -13.7%)
  • South Korea's July CPI -0.2% m/m (expected 0.1%; last 0.1%); 2.8% yr/yr (expected 3.0%; last 3.2%)
  • Hong Kong's June Retail Sales 4.6% yr/yr (last 7.9%)
  • Australia's July Commodity Prices -15.4% yr/yr (last 14.6%)

---Equity Markets---

• Japan's Nikkei: +0.3%
• Hong Kong's Hang Seng: -0.6%
• China's Shanghai Composite: +0.3%
• India's Sensex: -0.3%
• South Korea's Kospi: +1.6%
• Australia's ASX All Ordinaries: +1.5%

Major European indices trade near their flat lines while Italy's MIB (+1.1%) outperforms, extending to a fresh record high. Bayer, BP, and HSBC beat their respective profit expectations for the second quarter. Tiremaker Continental warned of an upcoming cost increase while Lufthansa lowered its profit forecast and noted that uncertainty is on the rise.

• In economic data:
  • France's June government budget deficit EUR106.8 bln (last deficit of EUR93.3 bln)
  • Italy's June Retail Sales -0.1% m/m (expected 0.3%; last 0.2%); 3.1% yr/yr (last 2.2%)

---Equity Markets---

• STOXX Europe 600: +0.7%
• Germany's DAX: +0.4%
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +0.2%
• Italy's FTSE MIB: +1.2%
• Spain's IBEX 35: UNCH