[BRIEFING.COM] S&P futures vs fair value: -6.80. Nasdaq futures vs fair value: -30.80.
Futures rebound, with the S&P 500 futures trading seven points, or 0.2%, below fair value.
Equity indices in the Asia-Pacific region ended Thursday on a broadly lower note. Regional markets tracked Wednesday's slide on Wall Street, with Taiwan's Taiex falling more than 6.0%, representing the largest daily drop for the index in a decade. People's Bank of China governor Yi Gang met with U.S. Treasury Secretary Steven Mnuchin at the World Bank conference in Bali. It has been reported that the PBoC Chief also met with Fed Chairman Jay Powell. The officials discussed "relevant economic and financial issues", according to a statement from the PBoC. China's $3 billion dollar bond sale has reportedly received more than $10 billion in orders.
- In economic data:
- Japan's September PPI +0.3% month-over-month (expected 0.2%; last 0.4%); +3.0% year-over-year (expected 2.9%; last 3.0%). September Bank Lending +2.3% year-over-year (expected 2.1%; last 2.2%)
- South Korea's August Current Account surplus $8.44 billion (last $8.76 billion)
- Australia's MI Inflation Expectations 4.0% (last 4.0%)
- New Zealand's September Food Price Index -0.1% month-over-month (last -0.5%)
- Japan's Nikkei fell 4.0% to a one-month low. Nippon Sheet Glass, Fanuc, TDK, Softbank, Nitto Denko, Familymart, Show Denko, Komatsu, Isuzu Motors, Trend Micro, Olympus, TOTO, Hitachi Construction, and Fast Retailing lost between 4.3% and 9.9%. On the upside, Daiwa House Industry was the lone advancer, rising 0.2%.
- Hong Kong's Hang Seng slid 3.5% to its lowest level in 15 months. All 50 index components recorded losses with Apple suppliers AAC Technology and Sunny Optical Tech among the weakest performers. The two names lost a respective 7.3% and 6.2% while Tencent Holdings, Geely Automobile, Hang Lung Properties, Wharf Real Estate, CNOOC, Sands China, China Overseas, AIA Group, Sino Land, and PetroChina surrendered between 4.2% and 6.6%.
- China's Shanghai Composite slumped 5.2% to its lowest level in more than four years. Sichuan Western Resources Holdings, Wolong Real Estate, Ningbo Bird, HNA Technology, and Jilin Yatai all lost near 10.0%.
- India's Sensex fell 2.2% to levels from mid-April. SBI dropped 5.7% while Infosys, Tata Consultancy, IndusInd Bank, Bajaj Auto, ICICI Bank, Kotak Mahindra Bank, AXIS Bank, and HDFC Bank lost between 1.4% and 3.6%.
Major European indices trade lower across the board. Sweden reported hotter than expected inflation for September (actual 2.3% year-over-year; expected 2.0%), boosting expectations for the Riksbank to hike rates in December. Spain's government has reportedly agreed to a budget for 2019, and like Italy, the country plans to increase its budget deficit, to 1.8% of GDP from 1.3%. The budget still needs to make it through the Spanish Senate before being sent to the EU Commission by October 15. The Managing Director of the European Stability Mechanism Klaus Regling said he sees no immediate danger of Italy losing its market access nor its investment grade rating.
- In economic data:
- France's September CPI -0.2% month-over-month, as expected (last 0.5%); +2.2% year-over-year, as expected (last 2.3%)
- Spain's September CPI +0.2% month-over-month, as expected (last 0.1%); +2.3% year-over-year (expected 2.2%; last 2.2%)
- Germany's DAX is down 0.7%, sliding to levels from January. Most index members trade in the red with heavyweights like Infineon, Linde, SAP, Lufthansa, Volkswagen, Allianz, Adidas, Siemens, Daimler, and BASF showing losses between 0.8% and 2.8%. Bayer and Fresenius SE outperform with respective gains of 4.8% and 1.9%.
- France's CAC has given up 1.3%. Capgemini, AXA, TechnipFMC, Kering, Total, Hermes, ArcelorMittal, Credit Agricole, and Danone hold losses between 1.4% and 3.0%.
- UK's FTSE is lower by 1.2%. Consumer names like Barratt Developments, Taylor Wimpey, Carnival, TUI, Next, Persimmon, Diageo, and Merlin Entertainments are down between 1.7% and 8.3%.