Stock Market Update

The S&P 500 futures currently trade 29 points above fair value. 

Most equity indices in the Asia-Pacific region rebounded on Wednesday while Japan's Nikkei (-0.9%) underperformed, deepening its pullback from a record high. Samsung announced a $58 bln buyback for employee equity bonuses while SK Hynix updated its plan for a U.S. listing. An adviser from the People's Bank of China said that rate cuts are still possible this year. MSCI extended its review of Indonesia's market classification and chose not to upgrade South Korea to developed market status due to currency-related concerns.

• In economic data:
  • Japan's May Corporate Services Price Index 3.3% yr/yr, as expected (last 3.3%)
  • Australia's May Monthly CPI Indicator 4.0% (expected 4.3%; last 4.2%)

---Equity Markets---

• Japan's Nikkei: -0.9%
• Hong Kong's Hang Seng: +0.3%
• China's Shanghai Composite: +0.1%
• India's Sensex: +1.0%
• South Korea's Kospi: +3.3%
• Australia's ASX All Ordinaries: +0.3%

Major European indices trade on a mostly lower note while France's CAC (+0.4%) and the U.K.'s FTSE (+0.1%) outperform. Rheinmetall has plunged to its lowest level since early 2025 after Germany canceled its plan to build six warships and purchase frigates from ThyssenKrupp instead. Sweden's central bank indicated readiness to raise rates in its meeting minutes for June.

• In economic data:
  • Germany's June ifo Business Climate Index 85.6, as expected (last 85.0). June Current Assessment 87.0 (expected 86.0; last 86.1) and June Business Expectations 84.1 (expected 85.0; last 83.9)
  • Swiss June ZEW Expectations -25.0 (last -11.1)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -1.2%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: +0.4%
• Italy's FTSE MIB: -0.6%
• Spain's IBEX 35: -0.5%