Stock Market Update

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

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. Japan's largest trading firms outperformed after Berkshire Hathaway increased its holdings in Mitsubishi Corp and Mitsui Corp. Toyota's July global sales hit a record with help from a jump in exports ahead of the implementation of tariffs. Japan's top trade negotiator postponed his trip to Washington until next week. The Bank of Korea left its policy rate at 2.50%, as expected.

• In economic data:
  • India's July Industrial Production 3.5% yr/yr (expected 2.1%; last 1.5%) and July Manufacturing Output 5.4% m/m (last 3.9%)
  • Australia's Q2 Building Capital Expenditure 0.2% qtr/qtr (last 1.0%), Q2 Plant/Machinery Capital Expenditure 0.3% qtr/qtr (last -1.7%), and Private New Capital Expenditure 0.2% qtr/qtr (expected 0.8%; last -0.2%)
  • New Zealand's August ANZ Business Confidence 49.7 (last 47.8)

---Equity Markets---

• Japan's Nikkei: +0.7%
• Hong Kong's Hang Seng: -0.8%
• China's Shanghai Composite: +1.1%
• India's Sensex: -0.9%
• South Korea's Kospi: +0.3%
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade mostly higher. Expectations are on the rise for French Prime Minister Bayrou to lose his confidence vote that is scheduled for September 8. French Finance Minister Lombard said that the public deficit for 2025 will remain on target and he does not expect a financial crisis.

• In economic data:
  • Eurozone's July Private Sector Loans 2.4% yr/yr, as expected (last 2.2%) and Loans to nonfinancials 2.8% yr/yr (last 2.7%). August Business and Consumer Survey 95.2 (expected 96.0; last 95.7)
  • Italy's August Business Confidence 87.4 (expected 87.2; last 87.8) and Consumer Confidence 96.2 (expected 96.6; last 97.2). July Industrial Sales 1.2% m/m (last -2.1%); 0.3% yr/yr (last -1.8%)
  • Swiss Q2 GDP 0.1% qtr/qtr, as expected (last 0.4%); 1.2% yr/yr (expected 1.4%; last 1.8%)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: +0.1%
• U.K.'s FTSE 100: -0.3%
• France's CAC 40: +0.5%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.2%