Stock Market Update

The S&P 500 futures currently trade 31 points above fair value. 

Equity indices in the Asia-Pacific region ended Wednesday on a mostly lower note with South Korea's Kospi (-5.8%) enduring a volatile night. SK Hynix reached a tentative wage agreement with its employees. President Trump said that he wants to meet with North Korea's Leader Kim Jong Un in November. Japanese debt climbed overnight, recovering from early weakness that drove yields on longer-dated JGBs to fresh highs for the year. Moody's affirmed Australia's AAA rating with a Stable Outlook.

• In economic data:
  • Japan's June Core Machinery Orders 9.7% m/m (expected 7.2%; last -12.4%); 16.9% yr/yr (expected 10.8%; last -1.9%)
  • Australia's Q2 Wage Price Index 0.8% qtr/qtr, as expected (last 0.8%); 3.2% yr/yr, as expected (last 3.2%)
  • New Zealand's Q2 Input PPI 2.9% qtr/qtr (expected 1.3%; last 1.4%) and Output PPI 1.6% qtr/qtr (expected 0.8%; last 0.8%)

---Equity Markets---

• Japan's Nikkei: -3.2%
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: -2.4%
• India's Sensex: -0.4%
• South Korea's Kospi: -5.8%
• Australia's ASX All Ordinaries: -0.2%

Major European indices trade in mixed fashion near their flat lines. The U.K.'s CPI accelerated to 2.9% from 2.6% in July, representing the first acceleration in four months, while Core CPI remained above expectations. European Central Bank policymaker Rehn said that he has not seen clear signs of second-round effects, though he conceded that it is essential to anchor inflation expectations, while ECB President Lagarde said that the region can't miss out on the AI revolution.

• In economic data:
  • Eurozone's July CPI 0.2% m/m, as expected (last -0.1%); 2.9% yr/yr, as expected (last 2.8%). July Core CPI 0.0% m/m, as expected (last 0.2%); 2.5% yr/yr, as expected (last 2.4%). June Current Account surplus EUR35.10 bln (expected surplus of EUR26.8 bln; last surplus of EUR25.1 bln)
  • U.K.'s July CPI 0.3% m/m, as expected (last 0.1%); 2.9% yr/yr, as expected (last 2.6%). July Core CPI 0.2% m/m (expected 0.1%; last 0.3%); 2.6% yr/yr (expected 2.5%; last 2.6%). July Input PPI -1.7% m/m (expected 0.0%; last -1.9%) and Output PPI 0.2% m/m, as expected (last -0.1%)
  • Swiss Q2 Industrial Production 5.5% yr/yr (expected -4.7%; last -7.6%)

---Equity Markets---

• STOXX Europe 600: UNCH
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: +0.3%
• Italy's FTSE MIB: UNCH
• Spain's IBEX 35: UNCH