Stock Market Update

The S&P 500 futures currently trade 22 points below fair value.

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. President Trump met with China's President Xi and agreed to reduce the fentanyl-related tariff to 10%. He said that there is no roadblock when it comes to rare earths and said that he will visit China in April. Japan's Prime Minister Takaichi will meet with China's President Xi tomorrow. The Hong Kong Monetary Authority followed the Fed's rate cut with a 25-basis point reduction of its own, lowering its policy rate to 4.25%. Meanwhile, the Bank of Japan left its rate at 0.50%, which was also expected.

• In economic data:
  • Singapore's Q3 Unemployment Rate 2.0% (last 2.0%)
  • Australia's Q3 Import Price Index -0.4% qtr/qtr (expected -0.3%; last -0.8%); -0.9% qtr/qtr (last -4.5%)
  • New Zealand's October ANZ Business Confidence 58.1 (last 49.6)

---Equity Markets---

• Japan's Nikkei: UNCH
• Hong Kong's Hang Seng: -0.2%
• China's Shanghai Composite: -0.7%
• India's Sensex: -0.7%
• South Korea's Kospi: +0.1%
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade in the red ahead of the European Central Bank's latest policy Statement at 9:15 ET, which is not expected to call for a rate cut. Economic data released today showed a slight GDP beat for the eurozone thanks to above-consensus growth in France. In earnings, Shell beat quarterly profit expectations and announced a buyback while Volkswagen reported a loss for the quarter.

• In economic data:
  • Eurozone's Q3 GDP 0.2% qtr/qtr (expected 0.1%; last 0.1%); 1.3% yr/yr (expected 1.2%; last 1.5%). October Business and Consumer Survey 96.8 (expected 95.7; last 95.6)
  • Germany's Q3 GDP 0.0% qtr/qtr, as expected (last -0.3%); 0.3% yr/yr, as expected (last 0.2%). September Unemployment Change -1,000 (expected 8,000; last 13,000)
  • France's Q3 GDP 0.5% qtr/qtr (expected 0.2%; last 0.3%); 0.9% yr/yr (expected 0.6%; last 0.7%). September Consumer Spending 0.3% m/m (expected 0.0%; last 0.2%). October Unemployment Rate 6.3%, as expected (last 6.3%)
  • Italy's Q3 GDP 0.0% qtr/qtr (expected 0.1%; last -0.1%); 0.4% yr/yr (expected 0.6%; last 0.4%). September Unemployment Rate 6.1% (expected 6.0%; last 6.0%). August Industrial Sales -0.7% m/m (last 0.4%); -0.1% yr/yr (last 1.2%)
  • Spain's October CPI 0.7% m/m (last -0.3%); 3.1% yr/yr (expected 2.9%; last 3.0%). October Core CPI 2.5% yr/yr (last 2.4%)
  • Swiss October KOF Leading Indicators 101.3 (expected 98.4; last 98.0)

---Equity Markets---

• STOXX Europe 600: -0.6%
• Germany's DAX: -0.2%
• U.K.'s FTSE 100: -0.7%
• France's CAC 40: -0.9%
• Italy's FTSE MIB: -0.9%
• Spain's IBEX 35: -1.5%