[BRIEFING.COM] S&P futures vs fair value: +39.80. Nasdaq futures vs fair value: +149.00.
The S&P 500 futures remain higher, trading 40 points, or 1.5%, above fair value.
Equity indices in the Asia-Pacific region ended the week on a higher note, rebounding from losses recorded earlier in the week. China sold $3 billion of dollar-denominated debt to a bid-cover ratio of 4.4 with most investors bidding for the shortest duration. $1.5 billion worth of 5-yr debt was sold at 3.25% while another billion worth of 10-yr debt drew a yield of 3.50%. The remaining $500 million worth of 30-yr debt cleared the market at 4.00%. Elsewhere, the Monetary Authority of Singapore tightened policy for the second time since the end of 2017.
- In economic data:
- China's September trade surplus $31.69 billion (expected $19.40 billion; last $27.89 billion). September Imports +14.3% year-over-year (expected 15.0%; last 19.9%) and September Exports +14.5% year-over-year (expected 8.9%; last 9.8%)
- Australia's August Home Loans -2.1% month-over-month (expected -0.9%; last 0.4%). August Invest Housing Finance -1.1% month-over-month (last -1.3%)
- Singapore's Q3 GDP +4.7% quarter-over-quarter (expected 4.9%; last 1.2%); +2.6% year-over-year (expected 2.5%; last 4.1%)
- South Korea's September Unemployment Rate 4.0% (last 4.2%)
- New Zealand's September Business NZ PMI 51.7 (last 52.0)
- Japan's Nikkei gained 0.6%, narrowing this week's loss to 4.7%. SUMCO, Trend Micro, Tokyo Electron, Shiseido, Fuji Electric, Konami, Asahi Group Holdings, Fanuc, Komatsu, Daikin Industries, and TDK climbed between 1.4% and 8.4%.
- Hong Kong's Hang Seng rallied 2.1%, but lost 2.9% for the week. Sunny Optical Tech jumped 10.7% while Geely Automobile, Tencent Holdings, Galaxy Entertainment, and Sands China gained between 4.0% and 9.2%. Financials like AIA Group, China Life Insurance, ICBC, Ping An Insurance, and Bank of China posted gains between 1.2% and 3.6%.
- China's Shanghai Composite rose 0.9%, trimming this week's decline to 7.6%. Anhui Sun-Create Electronics, Anhui Conch Cement, Henan Oriental Silver Star Investment, Huaxin Cement, and Lao Feng Xiang climbed between 5.1% and 6.1%.
- India's Sensex settled higher by 2.2%, but fell 4.1% for the week. Maruti Suzuki, Mahindra & Mahindra, Kotak Mahindra Bank, Bajaj Auto, IndusInd Bank, ITC, Asian Paints, and Yes Bank gained between 2.8% and 5.9%.
Major European indices trade on a mostly higher note while Spain's IBEX (-0.4%) underperforms, slipping to a fresh low for the year amid a continued rise in the country's 10-yr yield (+4 bps to 1.69%). Elsewhere, the Italian Senate approved deficit targets for 2019 (2.4%), 2020 (2.1%), and 2021 (1.8%), pushing back plans for a balanced budget past 2021 from 2020. British Prime Minister Theresa May will reportedly make a public statement to assure her electorate that Britain will not remain in the Customs Union permanently, but the Prime Minister's office said there are no plans for a public statement at this time.
- In economic data:
- Eurozone August Industrial Production +1.0% month-over-month (expected 0.4%; last -0.7%); +0.9% year-over-year (expected -0.2%; last 0.3%)
- Germany's September CPI +0.4% month-over-month, as expected (last 0.4%); +2.3% year-over-year, as expected (last 2.3%)
- UK's FTSE is higher by 0.7%, seeking its second advance over the last seven days. Homebuilders and other consumer names are among the leaders with Barratt Developments, Persimmon, Taylor Wimpey, and Barkeley Group rising between 2.8% and 6.4% while Next, TUI, Marks & Spencer, Kingfisher, Dixons Carphone, Burberry, and InterContinental Hotels sport gains between 1.2% and 3.6%.
- France's CAC has climbed 0.7%. Valeo and Kering lead with respective gains of 4.0% and 3.3%, while ArcelorMittal, Peugeot, Renault, TechnipFMC, STMicroelectronics, Carrefour, Total, and Louis Vuitton are up between 0.9% and 2.4%.
- Germany's DAX trades up 0.5%. Lufthansa, Continental, Infineon, Daimler, SAP, BMW, Volkswagen, Deutsche Bank, and Siemens hold gains between 0.7% and 2.6%.
- Spain's IBEX is lower by 0.4%. Acciona, Iberdrola, Endesa, ACS, Mediaset, Inditex, Telefonica, and Amadeus show losses between 0.2% and 3.6%.