Stock Market Update

The S&P 500 futures currently trade 31 points above fair value. 

Equity indices in the Asia-Pacific region had a strong start to the week with Japan's Nikkei (+3.4%) rising to a fresh record high after Japan's LDP and Innovation Party agreed to form a coalition government, putting Sanae Takaichi on track to be officially elected new prime minister tomorrow. The People's Bank of China made no changes to its one-year and five-year loan prime rates. Australia's Prime Minister Albanese will meet with President Trump today. 

• In economic data:
  • China's Q3 GDP 1.1% qtr/qtr (expected 0.8%; last 1.0%); 4.8% yr/yr (expected 4.7%; last 5.2%). September Fixed Asset Investment -0.5% yr/yr (expected 0.1%; last 0.5%), September Industrial Production 6.5% yr/yr (expected 5.0%; last 5.2%), September Retail Sales 3.0% (expected 2.9%; last 3.4%), and September Unemployment Rate 5.2% (expected 5.3%; last 5.3%)
  • Hong Kong's September Unemployment Rate 3.9% (last 3.7%)
  • New Zealand's Q3 CPI 1.0% qtr/qtr (expected 0.8%; last 0.5%); 3.0% yr/yr, as expected (last 2.7%)

---Equity Markets---

• Japan's Nikkei: +3.4%
• Hong Kong's Hang Seng: +2.4%
• China's Shanghai Composite: +0.6%
• India's Sensex: +0.5%
• South Korea's Kospi: +1.8%
• Australia's ASX All Ordinaries: +0.3%

Major European indices trade on a mostly higher note while France's CAC (-0.1%) lags with BNP Paribas down more than 7.0% after the bank lost a court case. In addition, Standard & Poor's lowered France's credit rating to A+ from AA- due to persistent fiscal risks. Bundesbank President Nagel said that the EU needs to be more forceful with China to protect its own interests.

• In economic data:
  • Eurozone's August Current Account EUR11.9 bln (expected surplus of EUR22.5 bln; last surplus of EUR27.7 bln). August Construction Output -0.1% m/m (last 0.5%)
  • Germany's September PPI -0.1% m/m (expected 0.1%; last -0.5%); -1.7% yr/yr (last -2.2%)

---Equity Markets---

• STOXX Europe 600: +0.6%
• Germany's DAX: +1.3%
• U.K.'s FTSE 100: +0.3%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: +1.5%
• Spain's IBEX 35: +1.1%