Stock Market Update

Equity futures are modestly lower this morning after a week of decent gains for the stock market that were largely fueled by increasing rate cut expectations. 

The major averages eclipsed record high levels several times throughout the week before finishing slightly lower on Friday.

This week's action features a slimmer batch of economic data, though the market anticipates the start of the FOMC's Jackson Hole assembly on Thursday, with Fed Chair Jerome Powell set to speak on Friday. 

Much of the headline coverage this morning is centered around the summit between President Trump and Russian President Vladimir Putin, with The New York Times reporting that President Trump will now pursue a sweeping peace agreement instead of a temporary ceasefire, which involves Ukraine ceding territory to Russia. 

CNN reports that in exchange, Russia will allow "Article 5 type" security guarantees from the U.S. to Ukraine, which would entail a freezing of the front lines and agreements from Russia not to commit further attacks against Ukraine. 

President Trump is set to meet with Ukrainian President Volodymyr Zelenskyy today.

In corporate news:

• BioXcel Therapuetics (BTAI 7.07, +1.59, +29.0%) saw shares surge in the pre-market after the company announced positive FDA pre-sNDA meeting comments for sNDA submission for BXCL501 in agitation associated with bipolar disorders or schizophrenia.
• Dayforce (DAY 67.00, +14.12, +26.7%) trades sharply higher in the pre-market after reports the private equity firm Thoma Bravo is in advanced talks to acquire the company.
• Novo Nordisk A/S (NVO 53.69, +1.28, +2.4%) is higher in the pre-market after the FDA expanded the approval of the company's weight-loss drug Wegovy for the treatment of liver disease.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mostly higher note. Japan's Nikkei: +0.8%, Hong Kong's Hang Seng: -0.4%, China's Shanghai Composite: +0.9%, India's Sensex: +0.8%, South Korea's Kospi: -1.5%, Australia's ASX All Ordinaries: +0.2%.

In news: 

• Automakers and bank stocks helped propel Japan's Nikkei (+0.8%) to a fresh record high.
• Japan's Financial Services Agency is expected to approve yen-denominated stablecoins this month.
• Separately, there has been speculation about a potential corporate tax hike in Japan.
• South Korea may reduce its workweek to 4.5 days.

In economic data:

• Japan's June Tertiary Industry Activity Index 4.50 (last -1.40)
• Singapore's July non-oil exports -6.0% m/m (last 14.2%); -4.6% yr/yr (last 12.9%)
• New Zealand's July Performance of Services Index 48.9 (last 47.6)

Major European indices are starting the week on a lower note. STOXX Europe 600: -0.2%, Germany's DAX: -0.4%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.8%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: -0.7%.

In news:

• Ukraine's President Zelensky and several European leaders will meet with President Trump at the White House today in search of an agreement to end the war with Russia.
• Drugmaker Novo Nordisk outperforms after Wegovy was approved in the U.S. for the treatment of liver disease.

In economic data:

• Eurozone's June trade surplus EUR7.0 bln (expected surplus of EUR18.1 bln; last surplus of EUR16.5 bln)
• U.K.'s August Rightmove House Price Index -1.3% m/m (last -1.2%); 0.3% yr/yr (last 0.1%)
• Spain's June trade deficit EUR3.59 bln (last deficit of EUR2.54 bln) Swiss Q2 Industrial Production -0.1% yr/yr (last 8.9%)