Stock Market Update

The S&P 500 futures currently trade 51 points above fair value. 

Equity indices in the Asia-Pacific region began the week on a mostly higher note while Japan's Nikkei was closed for a holiday. New Bank of Japan policymaker Kazuyauki Masu spoke in favor of a rate hike but did not specify his preferred timing. South Korea and Taiwan are reportedly making a joint push to influence the Trump administration to lower tariffs on chip imports from both nations. The Reserve Bank of New Zealand will meet on Wednesday and the NZIER Shadow Board supports a 25-basis point rate cut.

• In economic data:
  • Singapore's October CPI 0.0% m/m (last 0.4%); 1.2% yr/yr (last 0.7%). October Core CPI 1.2% yr/yr (last 0.4%)

---Equity Markets---

• Japan's Nikkei: HOLIDAY
• Hong Kong's Hang Seng: +2.0%
• China's Shanghai Composite: +0.1%
• India's Sensex: -0.4%
• South Korea's Kospi: -0.2%
• Australia's ASX All Ordinaries: +1.3%

Major European indices are mixed with Italy's MIB (-0.9%) showing relative weakness amid pressure from defense contractor Leonardo. The U.K.'s Autumn budget will be delivered on Wednesday and Sky News reports that the growth outlook will be reduced. The French parliament rejected a draft budget for 2026 with the end-of-year deadline looming. Moody's affirmed the U.K.'s Aa3 rating with a Stable outlook and it raised Italy's rating to Baa2 from Baa3, revising the outlook to Positive from Stable.

• In economic data:
  • Germany's November ifo Business Climate Index 88.1 (expected 88.6; last 88.4). November Current Assessment 85.6 (expected 85.5; last 85.3) and Business Expectations 90.6 (expected 91.4; last 91.6)
  • Swiss Q3 Employment Level 5.532 mln (last 5.532 mln)

---Equity Markets---

• STOXX Europe 600: UNCH
• Germany's DAX: +0.5%
• U.K.'s FTSE 100: UNCH
• France's CAC 40: -0.2%
• Italy's FTSE MIB: -0.9%
• Spain's IBEX 35: +0.6%