Stock Market Update

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

Equity indices in the Asia-Pacific region began the week on a mixed note with South Korea's Kospi (-4.5%) closing at its lowest level since late April. China Securities Regulatory Commission is reportedly aiming to stabilize the country's equity market at a time when many listed companies are announcing dividends and share buybacks. The Trump administration is reportedly considering banning the use of Chinese AI models in the U.S. The People's Bank of China left its one-year and five-year loan prime rates at their respective 3.00% and 3.50%. The approval rating for Japan's Prime Minister Takaichi has fallen to a 2026 low of 53%.

• In economic data:
  • New Zealand's June trade surplus NZD23 mln (expected surplus of NZD250 mln; last surplus of NZD577 mln)

---Equity Markets---

• Japan's Nikkei: CLOSED
• Hong Kong's Hang Seng: +2.4%
• China's Shanghai Composite: +0.9%
• India's Sensex: -0.6%
• South Korea's Kospi: -4.5%
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade near their flat lines while sovereign debt is under some light pressure ahead of this week's policy meeting at the European Central Bank, which is not expected to result in a rate hike. Andy Burnham will become the U.K.'s seventh prime minister since 2016 today. Discount carrier Ryanair reported a drop in Q1 profit due to lower demand and higher fuel costs.

• In economic data:
  • Eurozone's May Construction Output 0.38% yr/yr (last 0.10%)
  • Germany's June PPI -0.3% m/m (expected -0.2%; last 0.3%); 1.8% yr/yr (last 0.1%)
  • U.K.'s June Rightmove House Price Index -1.0% m/m (last -0.6%); -0.4% yr/yr (last -0.5%)

---Equity Markets---

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