Stock Market Update

The stock market remains on track for a higher open, with the S&P 500 futures currently trading 80 points above fair value. 

Equity indices in the Asia-Pacific region ended the week on a lower note. China released a five-year plan for developing intelligent connected new energy vehicles. South China Morning Post reported that foreign automakers are slashing prices of gas-powered vehicles in China. There was some speculation that the Bank of Japan could accelerate the pace of its rate hikes. South Korea's exports for the first ten days of September were up 82.6% with chip exports soaring 270.1%.

• In economic data:
  • South Korea's exports during the first ten days of September increased 82.6%, with chip exports up 270.1%.
  • Japan's August PPI decreased 0.2% month-over-month (expected 0.0%; last 0.4%) and increased 7.6% year-over-year (expected 7.4%; last 7.7%).
  • Japan's Q3 BSI Large Manufacturing Conditions index rose to 7.6 (expected 2.5; last -1.8).
  • New Zealand's August Business PMI fell to 53.1 from 54.3.

---Equity Markets---

• Japan's Nikkei: -1.9%
• Hong Kong's Hang Seng: -0.6%
• China's Shanghai Composite: -1.2%
• India's Sensex: -0.2%
• South Korea's Kospi: -1.8%
• Australia's ASX All Ordinaries: -1.0%

Major European indices are looking for a higher finish to the week with help from a pullback in the price of oil. Several European Central Bank policymakers commented about inflation remaining too high, prompting speculation about another rate hike in October. France's finance ministry lowered its domestic growth forecast for the year to 0.5% from 0.7%. Towns in England led by mayors from the Labour party are reportedly planning a 5% tourist tax.

• In economic data:
  • U.K. July GDP increased 0.4% month-over-month (expected 0.0%; last 0.3%) and 1.6% year-over-year (expected 1.2%; last 1.1%).
  • The U.K.'s July trade deficit narrowed to GBP20.97 billion (expected deficit of GBP22.60 billion; last deficit of GBP23.01 billion).
  • U.K. July industrial production increased 0.2% month-over-month (expected -0.2%; last -0.2%) and 0.6% year-over-year (expected 0.2%; last -0.2%).
  • U.K. July manufacturing production increased 0.9% month-over-month (expected 0.2%; last -0.5%) and 2.6% year-over-year (expected 2.0%; last 0.5%).
  • U.K. July construction output increased 0.1% month-over-month, as expected (last 0.1%), and decreased 2.5% year-over-year (expected -2.3%; last -2.3%).
  • Italy's Q2 unemployment rate increased to 5.6% (expected 5.4%; last 5.3%).
  • Switzerland's August SECO Consumer Climate index was unchanged at -33, as expected.

---Equity Markets---

• STOXX Europe 600: +1.0%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: +1.0%
• France's CAC 40: +1.1%
• Italy's FTSE MIB: +1.3%
• Spain's IBEX 35: +1.1%