Stock Market Update

Equity futures point to a lower opening this morning, as the S&P 500 futures trade 36 points below fair value.

Equity indices in the Asia-Pacific region ended the week on a mixed note. A South Korean official said that the U.S. has demanded that South Korea join an effort to isolate China. Meanwhile, Japan is aiming to resume beef exports to China. A People's Bank of China official has called for $209 bln in stimulus spending to offset the impact of tariffs.

• In economic data:
  • New Zealand's June Business NZ PMI 48.8 (last 47.4)

---Equity Markets---

• Japan's Nikkei: -0.2% (-0.6% for the week)
• Hong Kong's Hang Seng: +0.5% (+0.9% for the week)
• China's Shanghai Composite: UNCH (+1.1% for the week)
• India's Sensex: -0.8% (-1.1% for the week)
• South Korea's Kospi: -0.2% (+4.0% for the week)
• Australia's ASX All Ordinaries: -0.1% (-0.2% for the week)

Major European indices trade in the red amid overall pressure on sentiment after President Trump announced that imports from Canada will be charged a 35% tariff. Expectations for a rate cut from the Bank of England are on the rise after the release of a weak GDP report for May. President Trump is reportedly planning weapons sales to NATO allies that would be then forwarded to Ukraine. European Central Bank policymakers Schnabel and Panetta said that the central bank is in a good position to wait and see before its next policy move.

• In economic data:
  • Germany's June WPI 0.2% m/m, as expected (last -0.3%); 0.9% yr/yr (last 0.4%)
  • U.K.'s May GDP -0.1% m/m (expected 0.1%; last -0.3%); 0.7% yr/yr, as expected (last 1.1%). May Construction Output -0.6% m/m (expected 0.2%; last 0.8%); 1.2% yr/yr (expected 1.7%; last 3.6%). May Industrial Production -0.9% m/m (expected -0.1%; last -0.6%); -0.3% yr/yr (expected 0.1%; last 0.3%). May Manufacturing Production -1.0% m/m (expected -0.1%; last -0.7%); 0.3% yr/yr (expected 0.4%; last 1.3%). May trade deficit GBP21.69 bln (expected deficit of GBP21.10 bln; last deficit of GBP22.42 bln)
  • France's June CPI 0.4% m/m (expected 0.3%; last -0.1%); 1.0% yr/yr (expected 0.9%; last 0.7%)
  • Swiss June SECO Consumer Climate -32 (expected -35; last -37)

---Equity Markets---

• STOXX Europe 600: -1.1% (+1.1% week-to-date)
• Germany's DAX: -1.0% (+1.8% week-to-date)
• U.K.'s FTSE 100: -0.5% (+1.2% week-to-date)
• France's CAC 40: -1.0% (+1.6% week-to-date)
• Italy's FTSE MIB: +1.6% (+3.0% week-to-date)
• Spain's IBEX 35: -1.0% (+0.2% week-to-date)