Stock Market Update

The S&P 500 futures currently trade 15 points below fair value. 

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Prime Minister Takaichi is planning a multi-year budget commitment to increase investment. The prime minister wants to increase revenue without raising taxes. South Korea's exports through the first ten days of November were up 6.4% yr/yr with chip exports jumping 17.7%. Australia's consumer confidence reached a seven-year high in November while Business Confidence reached an 18-month high.

• In economic data:
  • Japan's October Bank Lending 4.1% yr/yr (expected 3.8%; last 3.8%) and October Economy Watchers Current Index 49.1 (expected 47.5; last 47.1). September Current Account surplus JPY4.48 trln (expected surplus of JP2.47 trln; last surplus of JPY3.70 trln)
  • Australia's November Westpac Consumer Sentiment 12.8% (last -3.5%). October NAB Business Confidence 6 (last 7) and October NAB Business Survey 9 (last 8)
  • New Zealand's Inflation Expectations 2.3% qtr/qtr (last 2.3%)

---Equity Markets--- 

• Japan's Nikkei: -0.1%
• Hong Kong's Hang Seng: +0.2%
• China's Shanghai Composite: -0.4%
• India's Sensex: +0.4%
• South Korea's Kospi: +0.8%
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade in the green. The U.K.'s Unemployment rate for September reached its highest level since late 2020, boosting expectations for a December rate cut from the Bank of England. A handful of European Central Bank policymakers said that risks and inflation are currently balanced. The latest policy Minutes from Sweden's Riksbank showed confidence among policymakers that the current rate path is holding up well.

• In economic data:
  • Eurozone's November ZEW Economic Sentiment 25.0 (expected 23.5; last 22.7)
  • Germany's November ZEW Economic Sentiment 38.5 (expected 41.0; last 39.3) and ZEW Current Conditions -78.7 (expected -77.5; last -80.0)
  • U.K.'s September Average Earnings Index + Bonus 4.8%yr/yr (expected 5.0%; last 5.0%). October Claimant Count change 29,000 (expected 17,600; last 400) and September three-month employment change -22,000 (last 91,000). September Unemployment Rate 5.0% (expected 4.9%; last 4.8%)

---Equity Markets---

• STOXX Europe 600: +0.8%
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: +0.8%
• France's CAC 40: +0.9%
• Italy's FTSE MIB: +0.8%
• Spain's IBEX 35: +0.9%