Stock Market Update

The S&P 500 futures currently trade 15 points above fair value.

Equity indices in the Asia-Pacific region began the week on a mostly higher note. The U.S. and China will reportedly extend the current tariff rates for three months to continue negotiations. Officials from Japan and the U.S. reportedly have a differing view on how the investment component of the trade deal with Japan will be utilized. China's Premier Li said that his country is setting up an international AI collaboration group.

• In economic data:
  • China's June Industrial Profit -1.8% YTD (last -1.1%)
  • Hong Kong's June trade deficit HKD58.90 bln (last deficit of HKD27.3 bln). June Imports 11.1% m/m (last 18.9%) and Exports 11.9% m/m (last 15.5%)
  • India's June Industrial Production 1.5% yr/yr (expected 2.0%; last 1.2%) and June Manufacturing Output 3.9% m/m (last 2.6%)

    ---Equity Markets---

• Japan's Nikkei: -1.1%
• Hong Kong's Hang Seng: +0.7%
• China's Shanghai Composite: +0.1%
• India's Sensex: -0.7%
• South Korea's Kospi: +0.4%
• Australia's ASX All Ordinaries: +0.3%

Major European indices trade mostly higher. The EU and the U.S. reached a trade deal that will result in a 15% tariff rate on European imports into the U.S., call for $750 bln in energy purchases from the U.S., and a $600 bln investment into the U.S. Germany's mechanical engineering industry association said that the deal will cost German automakers "billions every year."

• In economic data:
  • U.K.'s July CBI Distributive Trades Survey -34 (expected -28; last -46)

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX: -0.3%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: +0.6%
• Spain's IBEX 35: +0.4%