Stock Market Update

The S&P 500 futures currently trade 19 points above fair value. 

Equity indices in the Asia-Pacific region ended Wednesday on a higher note while Hong Kong's Hang Seng was closed for a holiday. President Trump arrived in South Korea for the APEC Summit, where he is expected to meet with China's President Xi tomorrow. A major food distributor in China has reportedly purchased a considerable amount of U.S. soybeans ahead of the meeting of the two leaders. Separately, The Wall Street Journal reported that the U.S. is likely to reduce the fentanyl-related tariff on imports from China. Expectations for a rate cut from the Reserve Bank of Australia collapsed after the release of hotter-than-expected CPI for Q3.

• In economic data:
  • Japan's October Household Confidence 35.8 (expected 35.5; last 35.3)
  • Australia's Q3 CPI 1.3% qtr/qtr (expected 1.1%; last 0.7%); 3.2% yr/yr (expected 3.0%; last 2.1%). Q3 Trimmed Mean CPI 1.0% qtr/qtr (expected 0.8%; last 0.6%); 3.0% yr/yr (expected 2.7%; last 2.7%). Monthly CPI Indicator 3.5% yr/yr (expected 3.1%; last 3.0%)

---Equity Markets---

• Japan's Nikkei: +2.2%
• Hong Kong's Hang Seng: HOLIDAY
• China's Shanghai Composite: +0.7%
• India's Sensex: +0.4%
• South Korea's Kospi: +1.8%
• Australia's ASX All Ordinaries: -0.8%

Major European indices trade mostly higher. Deutsche Bank reported an unexpected profit for Q3 while UBS reported a doubling in its profit for Q3. Germany's engineering association expressed concern that more than half of German exports could be impacted if President Trump expands the tariff list in December. Nokia will receive a $1 bln investment from NVIDIA.

• In economic data:
  • U.K.'s September BoE Consumer Credit GBP1.491 bln (last GBP1.749 bln). September Mortgage Approvals 65,940 (expected 64,000; last 64,960) and September net Lending to Individuals GBP7.00 bln (expected GBP5.60 bln; last GBP6.00 bln)
  • Italy's September non-EU trade surplus EUR2.47 bln (last surplus of EUR1.88 bln)
  • Spain's Q3 GDP 0.6% qtr/qtr, as expected (last 0.8%); 2.8% yr/yr (expected 3.0%; last 3.1%). September Retail Sales 4.2% yr/yr (last 4.7%)
  • Swiss October ZEW Expectations -7.7 (last -46.4)

---Equity Markets---

• STOXX Europe 600: +0.2%
• Germany's DAX: UNCH
• U.K.'s FTSE 100: +0.8%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.4%