Stock Market Update

The S&P 500 futures currently trade 7 points above fair value. 

Equity indices in the Asia-Pacific region began the week on a higher note while Japan's Nikkei was closed for Mountain Day. President Trump expressed hope that China will significantly increase its soybean purchases from the U.S. ahead of tomorrow's expiration of the temporary extension of lower tariffs. China narrowly avoided deflation in July (0.0% yr/yr; expected -0.1%), though producer prices contracted for the 34th consecutive month. South Korea's exports through the first ten days of August were down 4.3% yr/yr but chip exports rose 12.0%. The U.S. government will charge NVIDIA (NVDA) and AMD (AMD) 15% of their revenue generated in China.

• In economic data:
  • China's July CPI 0.4% m/m (expected 0.3%; last -0.1%); 0.0% yr/yr (expected -0.1%; last 0.1%). July PPI -3.6% yr/yr (expected -3.4%; last -3.6%)

---Equity Markets---

• Japan's Nikkei: HOLIDAY
• Hong Kong's Hang Seng: +0.2%
• China's Shanghai Composite: +0.3%
• India's Sensex: +0.9%
• South Korea's Kospi: -0.1%
• Australia's ASX All Ordinaries: +0.5%

Major European indices trade on a mostly lower note. British Chancellor Reeves is reportedly considering a tax hike in the Autumn budget, though she previously pledged not to increase taxes on income, national insurance, and value-added. Defense contractors are under pressure amid speculation that President Trump's planned Friday meeting with Russia's President Putin could end the war in Ukraine.

• In economic data:
  • Italy's July CPI 0.4% m/m, as expected (last 0.2%); 1.7% yr/yr, as expected (last 1.7%). June trade surplus EUR5.41 bln (expected surplus of EUR7.12 bln; last surplus of EUR6.10 bln)

---Equity Markets---

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