Stock Market Update

The S&P 500 futures currently trade two points above fair value.

Equity indices in the Asia-Pacific region ended the week on a mostly lower note while South Korea's Kospi (+1.7%) reached a fresh record after being closed for nearly a week. Japan's incoming Prime Minister Takaichi said that there is no immediate need to revise the government's accord with the Bank of Japan, adding that she is not in position to comment on rate hike speculation. The market still feels pretty confident that another rate increase will be announced before the end of the year. Reserve Bank of Australia Governor Bullock said that the Australian economy is in a good spot, though services inflation remains sticky.

• In economic data:
  • Japan's September PPI 0.3% m/m (expected 0.1%; last -0.2%); 2.7% yr/yr (expected 2.5%; last 2.7%). September Bank Lending 3.8% yr/yr (expected 3.7%; last 3.5%)
  • New Zealand's September Business PMI 49.9 (last 49.9)

---Equity Markets---

• Japan's Nikkei: -1.0%
• Hong Kong's Hang Seng: -1.7%
• China's Shanghai Composite: -0.9%
• India's Sensex: +0.4% 
• South Korea's Kospi: +1.7% 
• Australia's ASX All Ordinaries: -0.1% 

Major European indices trade near their flat lines. French President Macron is expected to nominate his sixth prime minister over the past two years after Sebastien Lecornu failed to form a government. There is growing speculation that Germany slipped back into recession in Q3 due to weak exports and industrial production. The U.K.'s National Institute of Economic and Social Research believes that Chancellor Reeves should break her promise to not raise taxes in the Autumn budget.

• In economic data:
  • Italy's August Industrial Production -2.4% m/m (expected -0.3%; last 0.4%); -2.7% yr/yr (expected 0.5%; last 0.9%)
  • Swiss September SECO Consumer Climate -37 (expected -38; last -40)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -0.2%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: -0.2% 
• Spain's IBEX 35: +0.2%