Stock Market Update

The S&P 500 futures currently trade 22 points below fair value.

Equity indices in the Asia-Pacific region had a mostly lower finish to the week with Hong Kong's Hang Seng hitting a fresh 13-month low while markets in India were closed for a holiday. Japan's Tokyo CPI accelerated in June but remained below the Bank of Japan's 2.0% target for the fifth consecutive month. Japan's Prime Minister Takaichi indicated that her government plans to shift away from annual extra budgets in favor of annual bond issuance. Meanwhile, Finance Minister Katayama proposed a framework that would link spending to most predictable revenue streams like taxes, bond issuance, and spending cuts. The plan would include a 14-year, $2.3 trln, investment plan for AI and energy.

• In economic data:
  • Japan's June Tokyo CPI 1.7% yr/yr (prior 1.4%) and Tokyo Core CPI 1.6% yr/yr (expected 1.6%; prior 1.3%)
  • Singapore's May Industrial Production -0.7% m/m (expected 2.0%; last 6.2%); 13.0% yr/yr (expected 17.0%; last 16.5%)

---Equity Markets---

• Japan's Nikkei: -4.2% 
• Hong Kong's Hang Seng: -1.8% 
• China's Shanghai Composite: -2.3%
• India's Sensex: CLOSED 
• South Korea's Kospi: -5.8% 
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade in the red. Manager Magazin reported that Volkswagen could cut up to 100,000 jobs as part of aggressive restructuring that would also include a spin-off of the passenger vehicle brand. Near-term consumer inflation expectations decelerated slightly to 3.5% from 3.9%, according to a survey from the European Central Bank.

• In economic data:
  • France's May jobseekers 3.116 mln (prior 3.100 mln)
  • Italy's June Business Confidence 88.4, as expected (prior 87.9) and Consumer Confidence 92.4 (expected 94.5; prior 93.4). May non-EU trade surplus EUR3.84 bln (prior surplus of EUR3.85 bln)

---Equity Markets---

• STOXX Europe 600: -1.3% 
• Germany's DAX: -1.5% 
• U.K.'s FTSE 100: -1.1% 
• France's CAC 40: -0.9% 
• Italy's FTSE MIB: -1.4% 
• Spain's IBEX 35: -0.7%