Stock Market Update

The S&P 500 futures are up 6 points and are trading 0.2% above fair value. The Nasdaq 100 futures are up 20 points and are trading 0.2% above fair value. The Dow Jones Industrial Average futures are up 65 points and are trading 0.2% above fair value.

Equity indices in the Asia-Pacific region began the week on a higher note. There was more speculation about China loosening restrictions, but the spokesman for China's Health Commission said that no changes are being made to the country's coronavirus protocols. The approval rating of Japan's cabinet office fell nine points to 36%, according to Yomiuri. Yonhap reported that there are growing expectations for South Korea's 2023 GDP growth to be at 2.0% or below due to high rates, high inflation, and weak won.

• In economic data:
  • China's October trade surplus $85.15 bln (expected surplus of $95.95 bln; last surplus of $84.78 bln). October Imports -0.7% yr/yr (expected 0.1%; last 0.3%) and Exports -0.3% yr/yr (expected 4.3%; last 5.7%)

---Equity Markets---

• Japan's Nikkei: +1.2%
• Hong Kong's Hang Seng: +2.7%
• China's Shanghai Composite: +0.2%
• India's Sensex: +0.4%
• South Korea's Kospi: +1.0%
• Australia's ASX All Ordinaries: +0.6%

Major European indices trade on a mostly higher note with Germany's DAX (+0.8%) showing relative strength. The U.K. is reportedly planning to implement a road tax on electric vehicles and GBP35 bln in spending cuts. The German government will reportedly spend GBP83.3 bln to finance next year's cap on energy prices. Bank of France Governor Villeroy de Galhau said that ECB rate hikes need to continue since underlying inflation has not peaked.

• In economic data:
  • Eurozone's October Construction PMI 44.9 (last 45.3). November Sentix Investor Confidence -30.9 (expected -35.0; last -38.3)
  • Germany's September Industrial Production 0.6% m/m (expected 0.2%; last -1.2%). October Construction PMI 43.8 (last 41.8)
  • U.K.'s October Halifax House Price Index -0.4% m/m, as expected (last -0.1%); 8.3% yr/yr (last 9.8%)
  • France's October Construction PMI 44.3 (last 49.1)
  • Italy's October Construction PMI 48.1 (last 46.7)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.7%
• U.K.'s FTSE 100: -0.3%
• France's CAC 40: +0.2%
• Italy's FTSE MIB: +1.0%
• Spain's IBEX 35: +0.3%