Stock Market Update

The S&P 500 futures currently trade two points above fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note while Japan's Nikkei (-0.1%) underperformed, logging a slim loss. China's COSCO is reportedly seeking veto rights in the Panama port deal that was made in March. The latest policy minutes from the Reserve Bank of Australia showed a majority view that inflation trends should be confirmed before additional easing is announced. Three out of nine policymakers opposed the central bank's pause in its rate cut campaign.

• In economic data:
  • South Korea's June PPI 0.1% m/m (last -0.4%); 0.5% yr/yr (last 0.3%)
  • New Zealand's June trade surplus NZD142 mln (expected surplus of NZD1.02 bln; last surplus of NZD1.08 bln)

---Equity Markets---

• Japan's Nikkei: -0.1%
• Hong Kong's Hang Seng: +0.5%
• China's Shanghai Composite: +0.6%
• India's Sensex: UNCH
• South Korea's Kospi: -1.3%
• Australia's ASX All Ordinaries: +0.2%

Major European indices trade on a mostly lower note. There is growing speculation that British Chancellor Reeves will have to call for spending cuts or higher taxes in the Autumn budget statement despite a prior pledge that taxes will not be raised. The Bank of England's project to launch a digital pound could be terminated due to increasing resistance from the public. The European Central Bank's lending survey for Q2 showed steady bank lending conditions and rising loan demand from households.

• In economic data:
  • U.K.'s June Public Sector Net Borrowing GBP20.68 bln (expected GBP17.4 bln; last GBP17.44 bln) and June Public Sector Net Cash Requirements -GBP16.108 bln (prior GBP20.959 bln)

---Equity Markets---

• STOXX Europe 600: -0.6%
• Germany's DAX: -1.2%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.9%
• Italy's FTSE MIB: -0.3%
• Spain's IBEX 35: -0.3%