Stock Market Update

The stock market is poised for a higher opening this morning, with the S&P 500 futures currently trading 12 points above fair value.

Equity indices in the Asia-Pacific region ended Wednesday on a mostly higher note. Japan's wage growth was weaker than expected in June with real cash earnings decreasing for the sixth consecutive month. Japan's cabinet office is expected to lower its domestic growth forecast for the fiscal year. Bank of Korea Governor Rhee will not attend the Fed's Jackson Hole Economic Symposium later this month.

• In economic data:
  • Japan's June Average Cash Earnings 2.5% yr/yr (expected 3.2%; last 1.4%)
  • Australia's July AIG Construction Index -1.3 (last -14.9) and AIG Manufacturing Index -23.9 (last -29.3) 
  • New Zealand's Q2 Employment Change -0.1% qtr/qtr, as expected (last 0.1%). Q2 Labor Cost Index 0.6% qtr/qtr (expected 0.5%; last 0.4%); 2.2% yr/yr (expected 2.3%; last 2.5%). Q2 Participation Rate 70.5% (expected 70.7%; last 70.8%) and Q2 Unemployment Rate 5.2% (expected 5.3%; last 5.1%)

---Equity Markets---

• Japan's Nikkei: +0.6%
• Hong Kong's Hang Seng: UNCH
• China's Shanghai Composite: +0.5%
• India's Sensex: -0.2%
• South Korea's Kospi: UNCH
• Australia's ASX All Ordinaries: +0.9%

Major European indices trade in the green. European Central Bank policymaker Holzmann said that there is no reason for another rate cut from the ECB. Meanwhile, Times shadow Monetary Policy Committee voted in favor of a 25-basis point cut from the Bank of England on Thursday. Germany's government is reportedly preparing a EUR100 bln fund to invest in strategic sectors like defense, energy, and critical materials.

• In economic data:
  • Eurozone's June Retail Sales 0.3% m/m (expected 0.4%; last -0.3%); 3.1% yr/yr (expected 2.6%; last 1.9%)
  • Germany's June Factory Orders -1.0% m/m (expected 1.2%; last -0.8%)
  • France's Q2 Nonfarm Payrolls 0.0% qtr/qtr (expected 0.1%: last -0.1%)
  • Italy's June Industrial Production 0.2% m/m (expected -0.1%; last -0.8%); -0.9% yr/yr (last -1.0%)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -0.2%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: +0.2%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.6%