Stock Market Update

The S&P 500 futures currently trade 18 points above fair value.

Equity indices had a mixed showing on Thursday with South Korea's Kospi (-7.9%) falling past it 50-day moving average to a three-week low amid weakness in Samsung and SK Hynix. Japanese officials are reportedly considering a shift away from hinting at interventions before they take place. Japan's Prime Minister Takaichi is visiting India, looking to form some reciprocal agreements on investment. Berkshire Hathaway has reportedly continued increasing its stakes in top Japanese trading houses. Japan's final tax revenue for the last fiscal year is expected to reach a six-year high.

• In economic data:
  • Japan's June Monetary Base -13.7% yr/yr (expected -10.0%; last -12.2%)
  • South Korea's June CPI 0.1% m/m, as expected (last 0.5%); 3.2% yr/yr, as expected (last 3.1%)
  • Hong Kong's May Retail Sales 7.9% yr/yr (last 8.6%)
  • Australia's May trade deficit AUD3.018 bln (expected surplus of AUD2.190 bln; last surplus of AUD1.383 bln). May Imports 2.6% m/m (last 0.2%) and Exports -6.9% m/m (last 7.2%)
  • New Zealand's May Building Consents -4.0% m/m (last 11.1%)

---Equity Markets---

• Japan's Nikkei: -2.5%
• Hong Kong's Hang Seng: +0.8%
• China's Shanghai Composite: -2.0%
• India's Sensex: +0.8%
• South Korea's Kospi: -7.9%
• Australia's ASX All Ordinaries: UNCH

Major European indices trade in the green. The European Central Bank's policy forum in Portugal concluded, leading the market to believe that not just the Federal Reserve, but the Bank of England and the European Central Bank are also looking to pull back from giving constant forward guidance. Germany's Chancellor Merz said that a pension overhaul will be complete by the end of the year, adding that income tax cuts amounting to about EUR10 bln are in the cards.

• In economic data:
  • Eurozone's May Unemployment Rate 6.2% (expected 6.3%; last 6.2%)
  • France's May government budget deficit EUR93.3 bln (last deficit of EUR69.6 bln)
  • Italy's May Unemployment Rate 5.0% (expected 5.1%; last 5.1%)
  • Spain's June Unemployment Change -28,700 (expected -40,800; last -36,300)
  • Swiss June CPI 0.0% m/m (expected 0.1%; last 0.2%); 0.5% yr/yr, as expected (last 0.6%)

---Equity Markets---

• STOXX Europe 600: +1.1%
• Germany's DAX: +1.5%
• U.K.'s FTSE 100: +0.8%
• France's CAC 40: +1.3%
• Italy's FTSE MIB: +1.8%
• Spain's IBEX 35: +1.5%