Stock Market Update

The stock market is still poised for a lower start with S&P 500 futures trading 20 points below fair value. 

Equity indices in the Asia-Pacific region had a mixed start to July while Hong Kong's market was closed for a holiday. South Korea exported a record $15 bln worth of chips in June. China's Caixin Manufacturing PMI (50.4) returned to expansion in the reading for June. Japan's top trade negotiator said that the two sides are still not on the same page regarding some elements of a trade deal.

• In economic data:
  • China's June Caixin Manufacturing PMI 50.4 (expected 49.2; last 48.3)
  • Japan's Q2 Tankan Large Manufacturers Index 13 (expected 10; last 12) and Q2 Tankan All Big Industry Capex 11.5% (last 3.1%). June Manufacturing PMI 50.1 (expected 50.4; last 49.4)
  • South Korea's June trade surplus $9.08 bln (expected $8.40 bln; last $6.93 bln). June Imports 3.3% yr/yr (expected 6.9%; last -5.3%) and Exports 4.3% yr/yr (expected 4.7%; last -1.3%). June Manufacturing PMI 48.7 (last 47.7)
  • India's June Manufacturing PMI 58.4, as expected (last 58.4)
  • Singapore's Q2 URA Property Index 0.5% qtr/qtr (last 0.8%)
  • Australia's June Manufacturing PMI 50.6 (expected 51.0; last 51.0)
  • New Zealand's May Building Consents 10.4% m/m (last -14.6%)

---Equity Markets---

• Japan's Nikkei: -1.2%
• Hong Kong's Hang Seng: HOLIDAY
• China's Shanghai Composite: +0.4%
• India's Sensex: +0.1%
• South Korea's Kospi: +0.6%
• Australia's ASX All Ordinaries: UNCH

Major European indices trade on a mostly lower note. June Manufacturing PMI readings from the region's major economies pointed to an ongoing contraction while Spain's reading (51.4) reflected an acceleration in growth. European Central Bank policymaker Simkus said that the central bank is unlikely to make any changes to rates until later in the year while policymaker de Guindos said that the current euro exchange rate is perfectly acceptable.

• In economic data:
  • Eurozone's flash June CPI 0.3% m/m (last 0.0%); 2.0% yr/yr, as expected (last 1.9%). June Manufacturing PMI 49.5 (expected 49.4; last 49.4) o Germany's June Manufacturing PMI 49.0, as expected (last 48.3). June Unemployment Change 11,000 (expected 18,000; last 33,000) and Unemployment Rate 6.3% (expected 6.4%; last 6.3%)
  • U.K.'s June Manufacturing PMI 47.7, as expected (last 46.4). June Nationwide HPI -0.8% m/m (expected -0.2%; last 0.4%); 2.1% yr/yr (expected 3.3%; last 3.5%)
  • France's June Manufacturing PMI 48.1 (expected 47.8; last 49.8)
  • Italy's June Manufacturing PMI 48.4 (expected 49.5; last 49.2)
  • Spain's June Manufacturing PMI 51.4 (expected 50.6; last 50.5)
  • Swiss June Manufacturing PMI 49.6 (expected 44.2; last 42.1). May Retail Sales 0.0% yr/yr (expected 0.8%; last 0.9%)

---Equity Markets---

• STOXX Europe 600: -0.7%
• Germany's DAX: -0.9%
• U.K.'s FTSE 100: -0.3%
• France's CAC 40: -0.7%
• Italy's FTSE MIB: -0.7%
• Spain's IBEX 35: -0.1%