Stock Market Update

The S&P 500 futures currently trade 97 points abvoe fair value. 

Equity indices in the Asia-Pacific region had a mixed showing on Thursday. China's foreign minister called for the U.S. and Iran to exercise rationality after his meeting with Iran's foreign minister. This comes after the price of oil in Shanghai climbed above $135/bbl. New Zealand's Q2 growth was slightly ahead of expectations thanks to a strong contribution from construction. The Hong Kong Monetary Authority followed the Fed's rate hike with a 25-basis point increase of its own to 4.25%.

• In economic data:
  • Hong Kong's August unemployment rate rose to 3.8% from 3.7%.
  • Singapore's August trade surplus widened to SGD13.78 billion from SGD10.898 billion.
  • Singapore's August non-oil exports increased 10.9% month-over-month after declining 0.3% and rose 46.2% year-over-year versus an expected 35.0% increase and prior growth of 24.1%.
  • New Zealand's Q2 GDP increased 0.2% quarter-over-quarter versus an expected 0.1% increase and prior growth of 0.9%. GDP rose 2.6% year-over-year versus an expected 2.3% increase and prior growth of 1.7%, helped by a strong contribution from construction.
  • New Zealand's Q2 GDP expenditure increased 0.4% quarter-over-quarter after growing 1.1% previously.

---Equity Markets---

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

Major European indices trade in the green, encouraged by a deepening pullback in the price of oil with technology stocks showing some strength. European Central Bank policymaker Makhlouf repeated that second-round effects of inflation are not being seen. Switzerland raised its 2026 growth forecast to 1.7% from 0.9% while the 2027 outlook remained at 1.6%. The Bank of England voted 6-3 to keep its bank rate at 3.75%, but BoE Governor Bailey warned that a rate hike is possible if the Iran conflict is prolonged.

• In economic data:
  • Eurozone August CPI increased 0.4% month-over-month versus an expected 2.9% increase and prior growth of 0.2%. CPI rose 3.2% year-over-year versus an expected 3.3% increase and prior growth of 2.9%.
  • Eurozone August core CPI increased 0.2% month-over-month, as expected, after being unchanged previously. Core CPI rose 2.4% year-over-year, as expected, after increasing 2.5% previously.
  • Switzerland's August trade surplus narrowed to CHF3.786 billion from CHF5.742 billion.

---Equity Markets---

• STOXX Europe 600: +0.8%
• Germany's DAX: +0.8%
• U.K.'s FTSE 100: +0.8%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +0.8%
• Spain's IBEX 35: +0.9%