Stock Market Update

The S&P 500 futures currently trade 33 points above fair value. 

Equity indices in the Asia-Pacific region had a mostly higher showing on Thursday. There was some ongoing focus on the U.S.-China relationship after President Trump's recent comments brought the issue back to the forefront. President Trump acknowledged that the two sides are in a trade war, which made headlines. An agreement that South Korea will invest $350 bln in the U.S. as part of the trade is reportedly close to being reached. Australia's unemployment rate reached a four-year high in September.

• In economic data:
  • Japan's August Core Machinery Orders -0.9% m/m (expected 0.4%; last -4.6%); 1.6% yr/yr (expected 4.8%; last 4.9%). August Tertiary Industry Activity -4.3 (last 1.2)
  • Australia's September Employment Change 14,900 (expected 20,500; last -11,800) and Full Employment Change 8,700 (last -48,600). September Unemployment Rate 4.5% (expected 4.3%; last 4.3%) and Participation Rate 67.0% (expected 66.8%; last 66.9%)
  • New Zealand's September FPI -0.4% m/m (last 0.3%)

---Equity Markets---

• Japan's Nikkei: +1.3%
• Hong Kong's Hang Seng: -0.1%
• China's Shanghai Composite: +0.1%
• India's Sensex: +1.0%
• South Korea's Kospi: +2.5%
• Australia's ASX All Ordinaries: +0.8%

Major European indices trade in mixed fashion. The U.K. reported weak GDP growth for August, which boosted expectations for a December rate cut from the Bank of England, though the implied likelihood remains below 50%. French Prime Minister Lecornu survived a no-confidence motion by a slim margin, and he is expected to face another one. European Central Bank policymaker Muller said that rates are in a good place.

• In economic data:
  • Eurozone's August trade surplus EUR1.0 bln (expected surplus of EUR6.9 bln; last surplus of EUR12.7 bln)
  • U.K.'s August GDP 0.1% m/m, as expected (last -0.1%); 1.3% yr/yr, as expected (last 1.5%). August Construction Output -0.3% m/m (expected -0.1%; last 0.0%); 1.0% yr/yr (last 1.8%). August Industrial Production 0.4% m/m (expected 0.2%; last 0.4%); -0.7% yr/yr (expected -0.6%; last -0.1%). August Manufacturing Production 0.7% m/m (expected 0.2%; last -1.1%); -0.8% yr/yr (expected -1.0%; last -0.1%). August trade deficit GBP21.18 bln (expected deficit of GBP21.80 bln; last deficit of GBP20.65 bln)
  • Italy's September CPI -0.2% m/m, as expected (last 0.1%); 1.6% yr/yr, as expected (last 1.6%). August trade surplus EUR2.05 bln (expected surplus of EUR8.94 bln; last surplus of EUR7.83 bln)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.1%
• U.K.'s FTSE 100: -0.2%
• France's CAC 40: +1.0%
• Italy's FTSE MIB: +0.5%
• Spain's IBEX 35: -0.5%