Stock Market Update

The S&P 500 futures trade 16 points below fair value.

Equity indices in the Asia-Pacific region began the week on a mostly higher note. China's CPI deflated again in July, causing a deceleration in the year-over-year rate to just 0.5% from 1.0% in June. The Bank of Japan's latest summary of opinions showed overall hawkishness in sentiment among policymakers. Japanese investors sold the second-largest monthly amount of Australian bonds in June as rising JGB rates prompted repatriation of foreign investments. The Reserve Bank of Australia will meet overnight but a rate hike is not expected at this time.

• In economic data:
  • China's July CPI -0.1% m/m (expected 0.2%; last -0.3%); 0.5% yr/yr (expected 0.8%; last 1.0%). July PPI 3.5% yr/yr (expected 3.9%; last 4.1%)
  • Japan's June Current Account surplus JPY1.40 trln (expected surplus of JPY2.50 trln; last surplus of JPY3.06 trln). July Bank Lending 5.4% yr/yr (expected 5.7%; last 5.7%). July Economy Watchers Current Index 45.7 (expected 44.6; last 44.0)

---Equity Markets---

• Japan's Nikkei: +2.1%
• Hong Kong's Hang Seng: +1.1%
• China's Shanghai Composite: +0.7%
• India's Sensex: +0.1%
• South Korea's Kospi: +0.7%
• Australia's ASX All Ordinaries: -0.2%

Major European indices trade just above their flat lines while the U.K.'s FTSE (-0.3%) lags with homebuilders and other consumer names among the laggards. Vistry Group is down more than 5% after it was reported that Allianz reduced credit limits on new trading agreements for suppliers of Vistry. Distiller Diageo outperforms after cutting its dividend and announcing a cost-savings plan.

• In economic data:
  • Eurozone's August Sentix Investor Confidence 0.9 (expected -0.7; last -3.1)

---Equity Markets---

• STOXX Europe 600: unch
• Germany's DAX: unch
• U.K.'s FTSE 100: -0.3%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: unch
• Spain's IBEX 35: +0.1%