Stock Market Update

The S&P 500 futures currently trade 63 points above fair value. 

Equity indices in the Asia-Pacific region began the week on a broadly higher note. China's CPI was a bit hotter than expected in October, lifting the yr/yr rate out of deflation (to 0.2% from -0.3%), while PPI remained in deflation, falling 2.1% yr/yr. Separately, the Chinese government relaxed export restrictions on some rare earth metals. The Bank of Japan's latest Summary of Opinions showed that policymakers see the need for continued wage hikes from companies.

• In economic data:
  • China's October CPI 0.2% m/m (last 0.1%); 0.2% yr/yr (expected 0.0%; last -0.3%). October PPI -2.1% yr/yr (expected -2.3%; last -2.3%)
  • Japan's September Leading Index 108.0 (expected 107.9; last 107.0) and Coincident Indicator 1.8% m/m (last -1.3%)
  • Australia's September Building Approvals 12.0% m/m, as expected (last -3.6%) and Private House Approvals 4.0% m/m, as expected (last -1.0%)

---Equity Markets---

• Japan's Nikkei: +1.3%
• Hong Kong's Hang Seng: +1.6%
• China's Shanghai Composite: +0.5%
• India's Sensex: +0.4%
• South Korea's Kospi: +3.0%
• Australia's ASX All Ordinaries: +0.9%

Major European indices trade in the green with a sentiment boost from news that the U.S. government reached a deal to end the shutdown. The European Central Bank is starting to look for a replacement for Vice President de Guindos, whose term ends in May. Diageo named a new CEO. Chipmaker Nexperia has been cleared to resume civilian chip shipments by Chinese authorities.

• In economic data:
  • Eurozone's November Sentix Investor Confidence -7.4 (expected -3.9; last -5.4)

---Equity Markets---

• STOXX Europe 600: +1.5%
• Germany's DAX: +1.9%
• U.K.'s FTSE 100: +1.0%
• France's CAC 40: +1.5%
• Italy's FTSE MIB: +2.3%
• Spain's IBEX 35: +1.6%