[BRIEFING.COM] S&P futures vs fair value: -38.00. Nasdaq futures vs fair value: -128.00.
The S&P 500 futures remain notably lower, trading 38 points, or 1.4%, below fair value. Meanwhile, the tech-heavy Nasdaq 100 futures trade 1.9% below fair value.
Equity indices in the Asia-Pacific slumped broadly under the weight of large losses that were triggered by reports that Huawei Technologies CFO Meng Wanzhou was arrested in Canada on allegations the company violated U.S. trade sanctions on Iran. The real rub is that she is expected to be extradited to the U.S. to face the charges. This development has caused a great deal of angst over the idea that it will greatly diminish, if not kill, the chances of the U.S. and China reaching a trade deal in the next 90 days. That thought and worries about potential retaliatory actions by China have undercut a wide range of stocks, but particularly technology issues and the stocks of companies tied into the smartphone and telecom equipment supply chains.
- In economic data:
- Japan December Reuters Tankan Index 23 (last 26)
- Australia October trade surplus AUD 2.361 bln (expected AUD 3.100 bln; last AUD 2.940 bln); Exports +1.0% month-over-month (last +1.0%) and imports +3.0% month-over-month (last -1.0%); October Retail Sales +0.3% (expected 0.3%; last 0.1%)
- Japan's Nikkei: -1.9%
- Hong Kong's Hang Seng: -2.5%
- China's Shanghai Composite: -1.7%
- India's Sensex: -1.6%
- South Korea's Kospi: -1.6%
- Australia's All Ordinaries: -0.2%
Major European bourses are down across the board, registering large losses that are in keeping with the performance of Asian markets and the opening indication for the U.S. stock market. Nervousness about U.S.-China trade relations following the arrest of Huawei Technologies CFO, Meng Wanzhou, have fed the selling interest, which has been driven by worries about potentially adverse implications for global growth. Brexit uncertainty also remains a sticking issue, as reports suggest Prime Minster May is being urged by cabinet members to delay the Dec. 11 Brexit vote in Parliament out of fear that it will be defeated and precipitate a change in government. Ms. May, however, is reportedly still inclined to have the vote on Dec. 11. Separately, Italian Prime Minister Conte has said he will meet EU President Juncker next Tuesday to present Italy's budget.
- In economic data:
- Germany's October Factory Orders +0.3% (expected -0.4%; last 0.1%)
- STOXX Europe 600: -2.1%
- Germany's DAX: -2.6%
- UK's FTSE 100: -2.4%
- France's CAC 40: -2.5%
- Italy's FTSE MIB: -2.6%
- Spain's IBEX 35: -2.1%