Stock Market Update

The stock market is on track for a strong opening after a better-than-expected jobs report, with S&P 500 futures trading 14 points above fair value.

Equity indices in the Asia-Pacific region ended Thursday on a mixed note. The U.S. pulled back restrictions on sales of chip design software to China. South Korea's President Lee said that trade negotiations with the U.S. are looking very difficult, and it is unclear if they can be finished ahead of the July 9 deadline. Secretary of State Rubio cancelled his planned trip to Japan and South Korea, but he might still visit Malaysia.

• In economic data:
  • China's June Caixin Services PMI 50.6 (expected 51.0; last 51.1)
  • Japan's June Services PMI 51.7 (expected 51.5; last 51.0)
  • India's June Services PMI 60.4 (expected 60.7; last 60.7)
  • Australia's June Services PMI 51.8 (expected 51.3; last 51.3). May trade surplus AUD2.24 bln (expected surplus of AUD5.08 bln; last surplus of AUD4.86 bln). May Imports 3.8% m/m (last 1.6%) and Exports -2.7% m/m (last -1.7%)

---Equity Markets---

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

Major European indices trade in the green while the U.K.'s FTSE (+0.6%) outperforms as gilts recover some of their sharp losses from yesterday. British Prime Minister Starmer said that Chancellor Reeves will be in her position "for years to come" after Parliament reversed some of her welfare reform plans. Bank of England's Decision Maker Panel raised its year-ahead CPI outlook to 3.3% from 3.0%. European Commission President Von der Leyen will face a confidence vote in the European Parliament next week.

• In economic data:
  • Eurozone's June Services PMI 50.5 (expected 50.0; last 49.7)
  • Germany's June Services PMI 49.7 (expected 49.4; last 47.1)
  • U.K.'s June Services PMI 52.8 (expected 51.3; last 50.9)
  • France's June Services PMI 49.6 (expected 48.7; last 48.9)
  • Italy's June Services PMI 52.1 (expected 52.6; last 53.2)
  • Spain's June Services PMI 51.9 (expected 51.1; last 51.3)
  • Swiss June CPI 0.2% m/m (expected 0.1%; last 0.1%); 0.1% yr/yr (expected -0.1%; last -0.1%)

---Equity Markets---

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