Stock Market Update

The S&P 500 futures currently trade 52 points above fair value. 

Equity indices in the Asia-Pacific region had a higher showing on Wednesday with South Korea's Kospi (+2.7%) reaching a fresh record. Japan's new LDP leader Takaichi is still struggling to find coalition partners for her new government with reports indicating that some opposition parties back another candidate for prime minister. South Korea's national security office met to discuss ensuring a stable supply of rare earth elements. Standard & Poor's affirmed New Zealand's AA+ rating.

• In economic data:
  • China's September CPI 0.1% m/m (expected 0.2%; last 0.0%); -0.3% yr/yr (expected -0.2%; last -0.4%). September PPI -2.3% yr/yr, as expected (last -2.9%). September New Loans CNY1.290 bln (expected CNY1.460 bln; last CNY590 bln), September Outstanding Loan Growth 6.6% yr/yr (expected 6.7%; last 6.8%), and September total social financing CNY3.53 trln (expected CNY3.32 trln; last CNY2.57 trln)
  • Japan's August Industrial Production -1.5% m/m (expected -1.2%; last -1.2%) and Capacity Utilization -2.3% m/m (last -1.1%)
  • South Korea's September trade surplus $9.53 bln (expected surplus of $9.56 bln; last surplus of $6.51 bln). September Imports 8.2% yr/yr, as expected (last -4.1%) and Exports 12.6% yr/yr (expected 12.7%; last 1.2%)
  • Australia's September MI Leading Index 0.0% m/m (last -0.1%)

---Equity Markets---

• Japan's Nikkei: +1.8%
• Hong Kong's Hang Seng: +1.8%
• China's Shanghai Composite: +1.2%
• India's Sensex: +0.7%
• South Korea's Kospi: +2.7%
• Australia's ASX All Ordinaries: +1.0%

Major European indices trade mostly higher with France's CAC (+2.2%) showing relative strength with help from LVMH after strong quarterly results. French Prime Minister Lecornu will reportedly abandon pension reform plans in an attempt to appease his opposition. Meanwhile, British Chancellor Reeves said that she is considering tax hikes and spending cuts in the upcoming Autumn budget.

• In economic data:
  • Eurozone's August Industrial Production -1.2% m/m (expected -1.6%; last 0.5%); 1.1% yr/yr (last 2.0%)
  • France's September CPI -1.0% m/m, as expected (last 0.4%); 1.2% yr/yr, as expected (last 0.9%)
  • Spain's September CPI -0.3% m/m (expected -0.4%; last 0.0%); 3.0% yr/yr (expected 2.9%; last 2.7%). September Core CPI 2.4% yr/yr (expected 2.3%; last 2.4%)

---Equity Markets--- 

• STOXX Europe 600: +0.6%
• Germany's DAX: flat
• U.K.'s FTSE 100: -0.4%
• France's CAC 40: +2.2%
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: +0.6%