Stock Market Update

The S&P 500 futures currently trade seven points below fair value. 

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while Japan's Nikkei (-1.4%) underperformed with Softbank seeing an extension of yesterday's weakness. Japan Prime Minister's Takaichi's cabinet has an approval rating of 71%, according to a poll conducted by Yomiuri. The prime minister has ordered reforms of fiscal spending and revenue. China's State Council removed Wang Dongwei from the vice minister of finance post. The Bank of Korea left its policy rate at 2.50%, as expected. Governor Rhee said that high home prices and weak won are preventing the central bank from cutting rates.

• In economic data:
  • Hong Kong's September CPI 0.1% m/m (last 0.1%); 1.1% yr/yr (last 1.1%)
  • Singapore's September CPI 0.4% m/m (last 0.5%); 0.7% yr/yr (expected 0.6%; last 0.5%). September Core CPI 0.4% yr/yr (expected 0.2%; last 0.3%)
  • Australia's Q3 NAB Quarterly Business Confidence 2 (last 0)

---Equity Markets---

• Japan's Nikkei: -1.4%
• Hong Kong's Hang Seng: +0.7%
• China's Shanghai Composite: +0.2%
• India's Sensex: +0.2%
• South Korea's Kospi: -1.0%
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade on a mostly higher note. Germany's council of tax experts increased its forecast for tax revenue though 2029. Finance Minister Klingbeil said that the increased forecast reflects a more positive outlook. The Swiss National Bank released the Minutes from its September meeting, showing no appetite for additional easing.

• In economic data:
  • U.K.'s October CBI Industrial Trends Orders -38 (expected -28; last -27)
  • France's October Business Survey 101 (expected 96; last 97)
  • Spain's August trade deficit EUR6.00 bln (last deficit of EUR4.01 bln)

---Equity Markets---

• STOXX Europe 600: +0.2%
• Germany's DAX: -0.3%
• U.K.'s FTSE 100: +0.6%
• France's CAC 40: +0.4%
• Italy's FTSE MIB: +0.5%
• Spain's IBEX 35: +0.2%