Stock Market Update

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

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. China is considering implementing new restrictions on stock speculation after China's market reached its best level in a decade. BYD reportedly reduced its sales target for 2025 by 16%. Japan's JGBs finished modestly higher, pressuring the 30-yr yield from a record level. Meanwhile, Japan's Ministry of Finance said that current budget requests for next fiscal year are up about 6.3% year-over-year.

• In economic data:
  • South Korea's July Current Account surplus $10.78 bln (last surplus of $14.27 bln)
  • Australia's July trade surplus AUD7.31 bln (expected surplus of AUD4.88 bln; last surplus of AUD5.37 bln). July Imports -1.3% m/m (last -1.5%) and Exports 3.3% m/m (last 6.3%)

---Equity Markets---

• Japan's Nikkei: +1.5%
• Hong Kong's Hang Seng: -1.1%
• China's Shanghai Composite: -1.3%
• India's Sensex: +0.2%
• South Korea's Kospi: +0.5%
• Australia's ASX All Ordinaries: +0.9%

Major European indices trade on a mostly higher note while France's CAC (-0.2%) lags due to a sharp loss in Sanofi after disappointing trial results. The Bank of England's Decision Maker Panel raised its year-ahead CPI outlook to 3.3% from 3.2% while the three-year outlook was increased to 2.9% from 2.8%. Germany's ifo Institute lowered its domestic growth forecast for 2025 to 0.2% from 0.3% while the outlook for 2026 was reduced to 1.3% from 1.5%.

• In economic data:
  • Eurozone's July Retail Sales -0.5% m/m (expected -0.3%; last 0.6%); 2.2% yr/yr (expected 2.4%; last 3.5%)
  • Swiss August CPI -0.1% m/m (expected 0.0%; last 0.0%); 0.2% yr/yr, as expected (last 0.2%). August Unemployment Rate 2.9%, as expected (last 2.9%)

---Equity Markets---

• STOXX Europe 600: +0.5%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: -0.3%
• Italy's FTSE MIB: +0.4%
• Spain's IBEX 35: +0.7%