Stock Market Update

The S&P 500 futures currently trade 18 points above fair value. 

Equity indices in the Asia-Pacific region ended Wednesday on a mostly higher note. Japan launched an anti-dumping probe into steel products from China and South Korea. Developer Evergrande will be delisted from the Hong Kong Stock Exchange on August 22. Japan sold 5-yr JGBs to soft demand. Australia's wage data for Q2 showed a deceleration in the pace of growth. India's Prime Minister Modi is likely to speak with President Trump on the sidelines of the UN meeting in September.

• In economic data:
  • China's July New Loans -CNY50.0 bln (expected +CNY305.0 bln; last CNY2.240 trln). July Outstanding Loan Growth 6.9% yr/yr (expected 7.0%; last 7.1%) and July total social financing CNY1.16 trln (expected CNY1.50 trln; last CNY4.20 trln)
  • Japan's July PPI 0.2% m/m, as expected (last -0.1%); 2.6% yr/yr (expected 2.5%; last 2.9%). August Reuters Tankan Index 9 (last 7). July Machine Tool Orders 3.6% yr/yr (last -0.5%)
  • South Korea's July Unemployment Rate 2.5% (last 2.6%)
  • Australia's Q2 Wage Price Index 0.8% qtr/qtr, as expected (last 0.9%); 3.4% yr/yr (expected 3.3%; last 3.4%). June Home Loans 2.4% m/m (last -1.8%)
  • New Zealand's July Electronic Card Retail Sales 0.2% m/m (last 0.5%); 1.7% yr/yr (last -0.3%)

---Equity Markets---

• Japan's Nikkei: +1.3%
• Hong Kong's Hang Seng: +2.6%
• China's Shanghai Composite: +0.5%
• India's Sensex: +0.4%
• South Korea's Kospi: +1.1%
• Australia's ASX All Ordinaries: -0.5%

 Major European indices trade in the green. Final July CPI readings from Germany and Spain were in line with expectations and Germany's economy minister said that domestic inflation is likely to remain stable for the remainder of the year. The British government is looking to tighten rules surrounding inheritance transfers, aiming to generate about GBP1.5 bln in annual revenue by 2029. British homebuilder Persimmon reported solid results for the first half of 2025 and issued cautious guidance.

• In economic data:
  • Germany's July CPI 0.3% m/m, as expected (last 0.0%); 2.0% yr/yr, as expected (last 2.0%). July Wholesale Price Index -0.1% m/m (expected 0.2%; last 0.2%); 0.5% yr/yr (last 0.9%)
  • Spain's July CPI -0.1% m/m, as expected (last 0.7%); 2.7% yr/yr, as expected (last 2.3%). July Core CPI 2.3% yr/yr, as expected (last 2.2%)

---Equity Markets---

• STOXX Europe 600: +0.5%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: +0.6%
• Italy's FTSE MIB: +0.7%
• Spain's IBEX 35: +1.0%