Stock Market Update

The S&P 500 futures currently trade 9 points above fair value. 

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Final July Services PMI readings from the region's major economies were better than expected. Japan's top trade negotiator is reportedly back in Washington, seeking a written confirmation of the trade deal reached with the U.S. Expectations for the next rate hike from the Bank of Japan have reversed significantly. China's Agriculture Ministry noted that this fall's grain production is expected to be pressured by floods and droughts.

• In economic data:
  • China's July S&P Global Services PMI 52.6 (expected 50.4; last 50.6)
  • Japan's July Services PMI 53.6 (expected 53.5; last 51.7)
  • South Korea's July CPI 0.2% m/m, as expected (last 0.0%); 2.1% yr/yr, as expected (last 2.2%)
  • India's July Services PMI 60.5 (expected 59.8; last 60.4)
  • Hong Kong's July Manufacturing PMI 49.2 (last 47.8)
  • Singapore's June Retail Sales -1.2% m/m (last 1.0%); 2.3% yr/yr (last 1.3%)
  • Australia's July ANZ Job Advertisements -1.0% m/m (last 1.6%) and July Services PMI 54.1 (expected 53.8; last 53.8)
  • New Zealand's ANZ Commodity Price Index -1.8% m/m (last -2.4%)

---Equity Markets---

• Japan's Nikkei: +0.6%
• Hong Kong's Hang Seng: +0.7%
• China's Shanghai Composite: +1.0%
• India's Sensex: -0.4%
• South Korea's Kospi: +1.6%
• Australia's ASX All Ordinaries: +1.2%

Major European indices trade in the green. A European Commission official said that the trade deal with the U.S. is already being implemented, though he added that the joint statement is not legally binding. BP and Infineon reported strong results for the quarter. Germany's services sector returned to expansion in July (50.6) while Services PMI readings from the U.K. (51.8) and Spain (55.1) beat expectations.

• In economic data:
  • Eurozone's July Services PMI 51.0 (expected 51.2; last 50.5). June PPI 0.8% m/m (expected 0.9%; last -0.6%); 0.6% yr/yr (expected 0.5%; last 0.3%)
  • Germany's July Services PMI 50.6 (expected 50.1; last 49.7)
  • U.K.'s July Services PMI 51.8 (expected 51.2; last 52.8)
  • France's July Services PMI 48.5 (expected 49.7; last 49.6). June Industrial Production 3.8% m/m (expected 0.8%; last -0.7%). June government budget deficit EUR100.4 bln (last deficit of EUR94.0 bln)
  • Italy's July Services PMI 52.3 (expected 52.5; last 52.1)
  • Spain's July Services PMI 55.1 (expected 52.6; last 51.9) and June Industrial Production 2.3% yr/yr (last 1.7%)

---Equity Markets---

• STOXX Europe 600: +0.5%
• Germany's DAX: +0.8%
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +0.3%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.1%