Stock Market Update

The S&P 500 futures currently trade 32 points below fair value. 

Equity indices in the Asia-Pacific region came under selling pressure Tuesday in a risk-off move that followed Wall Street's disappointing outing on Monday. Japan's Nikkei (-3.2%) and South Korea's Kospi (-3.3%) both dropped more than 3.0%. Japan's prime minister, Takaichi, held a meeting with BOJ Governor Ueda. The two reportedly covered their goals for managing fiscal and monetary policy, respectively. JGB yields continued to rise, with the 20-yr note yield (2.81%) hitting its highest level since 1999. The move came as the yen continued to weaken and talk of added government spending swirled. No intervention yet to stem that tide, but Japan's finance minister expressed "deep concern" about FX moves. Elsewhere, the RBA Minutes suggested the bank will be patient, given two-sided risks, as members watch incoming data, geopolitical tension between Japan and China over Taiwan persisted, and XPeng disappointed with its Q4 revenue guidance.

• In economic data:
  • Hong Kong's October unemployment rate 3.8% (prior 3.9%)

---Equity Markets---

• Japan's Nikkei: -3.2%
• Hong Kong's Hang Seng: -1.7%
• China's Shanghai Composite: -0.8%
• India's Sensex: -0.3%
• South Korea's Kospi: -3.3%
• Australia's All Ordinaries: -2.0%

Major European indices are on the defensive, mimicking the risk-off tone that has infiltrated markets in the U.S. and Asia. Concerns about tech valuations and growth weighed on investor sentiment. Market-moving news flow was relatively light. Separately, the UK's Prudential Regulation Authority is raising the cap on bank deposit insurance from GPB85K to GBP120K starting in December.

• In economic data:
  • There was no economic data of note

---Equity Markets---

• STOXX Europe 600: -1.6%
• Germany's DAX: -1.6%
• U.K.'s FTSE 100: -1.3%
• France's CAC 40: -1.7%
• Italy's FTSE MIB: -2.1%
• Spain's IBEX 35: -2.1%