Stock Market Update

The S&P 500 futures are down 45 points and are trading 1.6% below fair value. The Nasdaq 100 futures are down 145 points and are trading 1.8% below fair value. The Dow Jones Industrial Average futures are down 330 points and are trading 1.4% below fair value.

Equity indices in the Asia-Pacific region ended the week on a lower note. Japan's Finance Minister Suzuki spoke again about the potential for an intervention in the currency market. South Korea's unemployment rate reached its lowest level in the 23-year history of the series. Reserve Bank of Australia Governor Lowe said that rates are still too low at this time, adding that he sees "a few" rate hikes in the coming months. The RBA governor also said that inflation expectations for the mid-term are well anchored.

• In economic data:
  • China's August Industrial Production 4.2% yr/yr (expected 3.8%; last 3.8%), August Fixed Asset Investment 5.8% yr/yr (expected 5.5%; last 5.7%), August Retail Sales 5.4% yr/yr (expected 3.5%; last 2.7%), August House Prices -1.3% yr/yr (last -0.9%), and August Unemployment Rate 5.3% (expected 5.4%; last 5.4%)
  • South Korea's August trade deficit $9.49 bln (last deficit of $9.47 bln). August Imports 28.2% yr/yr (last 25.6%) and Exports 6.6% yr/yr (last 15.9%). August Unemployment Rate 2.5% (last 2.9%). August Import Price Index 22.9% yr/yr (last 25.6%) and Export Price Index 13.4% yr/yr (last 15.9%)
  • Singapore's August trade surplus SGD3.755 bln (last SGD3.538 bln). August non-oil exports -3.9% m/m (expected -3.8%; last 1.4%); 11.4% yr/yr (expected 8.3%; last 7.0%)
  • New Zealand's August Business PMI 54.9 (last 53.5)

---Equity Markets---

• Japan's Nikkei: -1.1% (-2.3% for the week)
• Hong Kong's Hang Seng: -0.9% (-3.1% for the week)
• China's Shanghai Composite: -2.3% (-4.2% for the week)
• India's Sensex: -1.8% (-1.6% for the week)
• South Korea's Kospi: -0.8% (-0.1% for the week)
• Australia's ASX All Ordinaries: -1.5% (-2.3% for the week)

Major European indices trade on a lower note with the U.K.'s FTSE (-0.4%) showing the slimmest losses despite the release of weaker than expected retail sales for August. Bank of France raised its domestic growth forecast for 2022 to 2.6% from 2.3% and it now expects a 0.5% contraction in 2023, down from the previous forecast for growth of 0.8%. The central bank expects inflation of 5.8% this year and between 4.2% and 6.9% next year. European Central Bank President Lagarde said that rate hikes are sending a signal that the central bank will achieve its price target. Germany placed Rosneft Deutschland and Schwedt refinery under trusteeship.

• In economic data:
  • Eurozone's August CPI 0.6% m/m (expected 0.5%; last 0.1%); 9.1% yr/yr, as expected (last 9.1%). August Core CPI 0.5% m/m, as expected (last 0.5%); 4.3% yr/yr, as expected (last 4.3%)
  • U.K.'s August Retail Sales -1.6% m/m (expected -0.5%; last 0.4%); -5.4% yr/yr (expected -4.2%; last -3.2%). August Core Retail Sales -1.6% m/m (expected -0.7%; last 0.4%); -5.0% yr/yr (expected -3.4%; last -3.1%)
  • Italy's July trade deficit EUR361 mln (expected deficit of EUR1.50 bln; last deficit of EUR2.51 bln). August CPI 0.8% m/m, as expected (last 0.8%); 8.4% yr/yr, as expected (last 8.4%)

---Equity Markets---

• STOXX Europe 600: -1.3% (-2.7% week-to-date)
• Germany's DAX: -1.8% (-2.8% week-to-date)
• U.K.'s FTSE 100: -0.4% (-1.1% week-to-date)
• France's CAC 40: -1.5% (-2.4% week-to-date)
• Italy's FTSE MIB: -1.0% (+0.3% week-to-date)
• Spain's IBEX 35: -1.1% (-0.4% week-to-date)