Stock Market Update

Equity futures are up following the release of the June PPI, with the S&P 500 futures currently trading 13 points above fair value.

Equity indices in the Asia-Pacific region were mostly lower Wednesday, although losses were modest. Participants were digesting news of the U.S.-Indonesia trade deal and the tease from the White House that a similar deal with India could be coming soon. Other trade news involved a Reuters report that Australia and China will review their free trade agreement and that Japanese Prime Minister Ishiba is aiming to speak with Treasury Secretary Bessent on Friday about tariffs. The Treasury Secretary also said that the U.S. isn't going to rush deals because of some market deadline, like the August 12 pause expiration for China, according to Bloomberg. Separately, Japanese government bond yields dropped on Wednesday after enduring some politically driven selling pressure ahead of the Upper House elections, which reports suggest will likely result in the LDP losing its ruling coalition.

• In economic data:
  • Japan's July Reuters Tankan Index 7 (last 6)
  • South Korea's June Export Price Index -4.5% yr/yr (last -2.6%) and Import Price Index -6.2% yr/yr (last -5.1%); June Unemployment Rate 2.6% (last 2.7%)

---Equity Markets---

• Japan's Nikkei: -0.1%
• Hong Kong's Hang Seng: -0.3%
• China's Shanghai Composite: flat
• India's Sensex: +0.1%
• South Korea's Kospi: -0.9%
• Australia's All Ordinaries: -0.7%

Major European indices are showing modest gains and displaying resilience despite the U.K. reporting some hotter-than-expected CPI inflation for June, chip equipment maker ASML saying it cannot confirm if it will deliver growth in 2026 due to the uncertainty driven by macroeconomic and geopolitical developments, and car maker Renault lowering its FY25 operating margin outlook. U.K. CPI, at 3.6% yr/yr, is the highest since January 2024; core CPI was up 3.7% yr/yr.

• In economic data:
  • U.K.'s June CPI 0.3% m/m (expected 0.2%; last 0.2%) and 3.6% yr/yr (expected 3.4%; last 3.4%); June Core CPI 0.4% m/m (expected 0.2%; last 0.2%) and 3.7% yr/yr (expected 3.5%; last 3.5%); June RPI 0.4% m/m (expected 0.3%; last 0.2%) and 4.4% yr/yr (expected 4.3%; last 4.3%); House Price Index 3.9% (expected 3.2%; last 3.5%)
  • Italy's June CPI 0.2% m/m (expected 0.2%; last -0.1%) and 1.7% yr/yr (expected 1.7%; last 1.6%)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: +0.4%
• Spain's IBEX 35: +0.7%