Stock Market Update

The S&P 500 futures currently trade in line with fair value. 

Equity indices in the Asia-Pacific region ended the week on a mixed note with South Korea's Kospi (-1.8%) showing relative weakness. Japan's Prime Minister Takaichi confirmed plans to make changes to her cabinet in the second half of September. Japan's 2-yr JGB auction saw weak demand amid building expectations for more rate hikes from the Bank of Japan. Australian furniture retailer Harvey Norman said that retail conditions became more variable in the last reporting period with little improvement expected in the near term. Standard & Poor's affirmed China's A+ sovereign rating with a Stable outlook.

• In economic data:
  • Japan's August Tokyo CPI 1.9% yr/yr (last 1.8%) and Tokyo Core CPI 1.8%, as expected (last 1.7%). July jobs/applications ratio 1.18 (expected 1.19; last 1.18) and July Unemployment Rate 2.4% (expected 2.5%; last 2.5%)
  • India's July Industrial Production 6.7% yr/yr (expected 6.0%; last 8.8%) and Manufacturing Output 7.3% m/m (last 9.5%)

---Equity Markets---

• Japan's Nikkei: +0.4% 
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: -0.1%
• India's Sensex: +0.4%
• South Korea's Kospi: -1.8% 
• Australia's ASX All Ordinaries: +0.6%

Major European indices are looking for a higher finish to the week. France's Q2 GDP was revised down to show no growth and there was also a small contraction in nonfarm payrolls during the second quarter. French Finance Minister Lescure said that the economy suffered greatly after the summer heatwave, adding that data for Q3 will also be impacted. Meanwhile, Spain saw slightly hotter-than-expected inflation in August.

• In economic data:
  • Eurozone's August Business and Consumer Survey 98.4 (expected 97.5; last 97.1)
  • Germany's July Import Price Index 0.2% m/m (expected 0.3%; last -0.7%); 6.8% yr/yr (last 6.1%). August Unemployment Change 4,000, as expected (last 6,000) and Unemployment Rate 6.4%, as expected (last 6.4%)
  • France's Q2 GDP 0.0% qtr/qtr (expected 0.2%; last -0.2%); 0.5% yr/yr (expected 0.7%; last 0.9%). August CPI 0.7% m/m, as expected (last 0.6%); 2.4% yr/yr (last 2.1%). July Consumer Spending 0.5% m/m (expected 0.1%; last 0.6%).Q2 nonfarm payrolls -0.1% qtr/qtr (last -0.1%)
  • Italy's June Industrial Sales -1.0% m/m (last 0.5%); 3.1% yr/yr (last 5.2%). August Business Confidence 89.9 (expected 90.0; last 89.7) and Consumer Confidence 94.5 (expected 95.0; last 94.2)
  • Spain's August CPI 0.7% m/m (expected 0.6%; last 0.3%); 4.3% yr/yr (expected 4.2%; last 3.6%). August Core CPI 2.9% yr/yr (last 3.0%). July Retail Sales -0.3% yr/yr (last 0.6%)
  • Swiss August KOF Leading Indicators 106.7 (expected 103.0; last 104.2)

---Equity Markets---

• STOXX Europe 600: +0.5% 
• Germany's DAX: +0.7% 
• U.K.'s FTSE 100: +0.2% 
• France's CAC 40: +1.1% 
• Italy's FTSE MIB: +0.8% 
• Spain's IBEX 35: +0.7%