Stock Market Update

The S&P 500 futures currently trade 19 points above fair value. 

Equity indices in the Asia-Pacific region climbed on Wednesday with South Korea's Kospi (+3.8%) closing at its best level in nearly a week. China's RatingDog Services PMI (50.4) decelerated in July, reflecting a near standstill in growth in the services sector. New Zealand reported strong employment figures for Q2, though an increase in the participation rate to 70.7% from 70.4% resulted in a higher unemployment rate (5.6% from 5.4%). The Reserve Bank of India left its policy rate at 5.25%, as expected, noting that core inflation remains benign.

• In economic data:
  • China's July RatingDog Services PMI 50.4 (expected 53.7; last 54.1)
  • Japan's June Overall Wage Income 3.4% yr/yr, as expected (last 3.3%) and Overtime Pay 2.8% yr/yr (last 2.8%). July Services PMI 51.2 (expected 51.9; last 52.2)
  • Hong Kong's July Manufacturing PMI 51.0 (last 52.0)
  • Australia's July AIG Manufacturing Index -19.6 (last -16.8) and AIG Construction Index -40.6 (last -38.1). July Services PMI 53.6 (expected 53.0; last 50.5)
  • New Zealand's Q2 Labor Cost Index 0.7% qtr/qtr (expected 0.6%; last 0.5%); 2.1% yr/yr (last 2.0%). Q2 Employment Change 0.5% qtr/qtr (expected 0.1%; last 0.2%), Q2 Unemployment Rate 5.6% (expected 5.4%; last 5.4%) and Participation Rate 70.7% (last 70.4%)
  • India's July Services PMI 53.3 (expected 53.1; last 57.4)
  • Singapore's June Retail Sales 1.0% m/m (last -2.2%); 4.0% yr/yr (last 2.9%)

---Equity Markets---

• Japan's Nikkei: +3.7%
• Hong Kong's Hang Seng: +0.2%
• China's Shanghai Composite: +1.5%
• India's Sensex: +0.2%
• South Korea's Kospi: +3.8%
• Australia's ASX All Ordinaries: +1.0%

Major European indices trade near their flat lines while Spain's IBEX (+0.5%) outperforms with industrial and consumer names among the leaders. Siemens Energy reported strong quarterly results while DHL affirmed its guidance. The U.K. is planning to provide about GBP9 bln in infrastructure support for housing and businesses. Italy's Economy Minister Giorgetti said that his country will use extra deficit allowances for energy and defense spending.

• In economic data:
  • Eurozone's July Services PMI 52.0 (expected 51.9; last 50.0). July PPI -0.3% m/m (expected -0.2%; last 0.2%); 4.6% yr/yr, as expected (last 5.9%) o Germany's July Services PMI 49.8 (expected 49.6; last 48.6)
  • U.K.'s July Services PMI 52.1 (expected 51.8; last 48.8)
  • France's July Services PMI 49.6 (expected 49.8; last 46.8)
  • Italy's July Services PMI 52.5 (expected 51.0; last 50.2)
  • Spain's July Services PMI 53.8 (expected 54.9; last 54.2)

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX: +0.1%
• U.K.'s FTSE 100: +0.5%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: +0.4%
• Spain's IBEX 35: +0.5%