Stock Market Update

[BRIEFING.COM] S&P futures vs fair value: +17.00. Nasdaq futures vs fair value: +75.00. The S&P 500 futures trade 17 points above fair value.

Equity indices in the Asia-Pacific region ended the week on a mixed note with continued strength in South Korea's Kospi (+1.5%) driving the index to its best level since December 2021. Japan's National Core CPI was up 3.7% yr/yr in May, reaching its highest level since early 2023. Officials from Japan's Ministry of Finance met with primary dealers to discuss a plan to reduce sales of ultra-long bonds by 10%. Australia's Treasurer Chalmers is reportedly considering new taxes. The People's Bank of China made no changes to its one-year and five-year loan prime rates.

• In economic data:
  • China's May FDI -13.2% YTD (last -10.9%)
  • Japan's May National CPI 0.3% m/m (last 0.1%); 3.5% yr/yr, as expected (last 3.6%). National Core CPI 3.7% yr/yr (expected 3.6%; last 3.5%)
  • South Korea's May PPI -0.4% m/m (last -0.2%); 0.3% yr/yr (last 0.8%)
  • Hong Kong's May CPI -0.3% m/m (last -0.1%); 1.9% yr/yr (expected 2.0%; last 2.0%)

---Equity Markets---

• Japan's Nikkei: -0.2% (+1.5% for the week)
• Hong Kong's Hang Seng: +1.3% (-1.5% for the week)
• China's Shanghai Composite: -0.1% (-0.5% for the week)
• India's Sensex: +1.3% (+1.6% for the week)
• South Korea's Kospi: +1.5% (+4.4% for the week)
• Australia's ASX All Ordinaries: -0.2% (-0.5% for the week)

Major European indices are seeking a higher finish to the week. In its latest Economic Bulletin, the European Central Bank highlighted the complexity of transatlantic trade, noting that nearly a third of the eurozone's goods surplus with the US is generated by American-owned firms, complicating the narrative around recent tariff disputes. On the policy front, the European Investment Bank announced a record EUR100 billion financing ceiling for 2025 to bolster investments in European security, energy, and technological leadership. The Bank of England announced its latest policy decision yesterday, choosing to leave its bank rate unchanged at 4.25%, which was expected.

• In economic data:
  • Germany's May PPI -0.2% m/m (expected -0.3%; last -0.6%); -1.2% yr/yr, as expected (last -0.9%)
  • U.K.'s May Retail Sales -2.7% m/m (expected -0.5%; last 1.3%); -1.3% yr/yr (expected 1.7%; last 5.0%). May Core Retail Sales -2.8% m/m (expected -0.5%; last 1.4%); -1.3% yr/yr (expected 1.8%; last 5.2%). May Public Sector Net Borrowing GBP17.69 bln (expected GBP17.90 bln; last GBP20.05 bln)
  • France's June Business Survey 96 (expected 97; last 97)

---Equity Markets---

• STOXX Europe 600: +0.7% (-1.0% week-to-date)
• Germany's DAX: +1.5% (-0.5% week-to-date)
• U.K.'s FTSE 100: +0.4% (-0.3% week-to-date)
• France's CAC 40: +1.0% (-0.8% week-to-date)
• Italy's FTSE MIB: +1.3% (UNCH week-to-date)
• Spain's IBEX 35: +1.1% (UNCH week-to-date)