Stock Market Update

Futures have resumed trading after a data center cooling issue halted trading. The S&P 500 futures currently trade 14 points above fair value. 

Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Tokyo Core CPI remained elevated at 2.8% yr/yr in the November reading while the market expected a slight deceleration. Still, a Bank of Japan policymakers said that underlying inflation remains below the 2.0% target. South Korea's Industrial Production was down 4.0% in October against expectations for a much smaller decrease. Officials blamed base effects, as chip fabrication fell after jumping sharply in September. Japan's Ministry of Finance said that primary dealers want to see more issuance of 2-, 5-, and 10-yr JGBs and a reduced supply of ultra long JGBs.

• In economic data:
  • Japan's November Tokyo CPI 2.7% yr/yr, as expected (last 2.8%) and Tokyo Core CPI 2.8% yr/yr (expected 2.7%; last 2.8%). October Retail Sales 1.7% yr/yr (expected 0.8%; last 0.2%), October Industrial Production 1.4% m/m (expected -0.5%; last 2.6%), and October Unemployment Rate 2.6% (expected 2.5%; last 2.6%). October jobs/applications ratio 1.18 (expected 1.20; last 1.20). October Housing Starts 3.2% yr/yr (expected -5.0%; last -7.3%) and Construction Orders -10.1% yr/yr (last 34.7%)
  • South Korea's October Industrial Production -4.0% m/m (expected -0.2%; last -1.1%); -8.1% yr/yr (last 11.9%). October Retail Sales 3.5% m/m (last -0.1%) and October Service Sector Output -0.6% m/m (last 2.0%)
  • India's Q2 GDP 8.2% yr/yr (expected 7.3%; last 7.8%)
  • Australia's October Private Sector Credit 0.7% m/m (expected 0.6%; last 0.6%) and Housing Credit 0.6% m/m (last 0.6%)

---Equity Markets---

• Japan's Nikkei: +0.2%
• Hong Kong's Hang Seng: -0.3% 
• China's Shanghai Composite: +0.3%
• India's Sensex: UNCH
• South Korea's Kospi: -1.5%
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade near their flat lines amid some shakiness in sentiment resulting from an overnight halt in futures trading at the CME due to a cooling failure. German Chancellor Merz will reportedly call for EU flexibility on its plan to ban sales of internal combustion engine vehicles after 2035. Standard & Poor's expressed concern about risks to the U.K.'s fiscal plan toward the end of the forecast horizon.

• In economic data:
  • Germany's October Import Price Index 0.2% m/m (expected 0.0%; last 0.2%); -1.4% yr/yr (expected -1.6%; last -1.0%). October Retail Sales -0.3% m/m (expected 0.1%; last 0.3%); 0.9% yr/yr (last 3.4%). November Unemployment Change 1,000 (expected 4,000; last -2,000) and Unemployment Rate 6.3%, as expected (last 6.3%)
  • France's flash November CPI -0.1% m/m (expected 0.0%; last 0.1%); 0.9% yr/yr (expected 1.0%; last 0.9%). October PPI 0.0% m/m (last -0.1%); -0.8% yr/yr (last 0.1%). Q3 GDP 0.5% qtr/qtr, as expected (last 0.3%); 0.9% yr/yr, as expected (last 0.7%). October Consumer Spending 0.4% m/m (expected 0.3%; last 0.3%). Q3 Nonfarm Payrolls 0.0% qtr/qtr (expected -0.3%; last 0.2%). October jobseeker total 3.151 mln (last 3.082 mln)
  • Italy's Q3 GDP 0.1% qtr/qtr (expected 0.0%; last -0.1%); 0.6% yr/yr (expected 0.4%; last 0.4%). November CPI -0.2% m/m (expected -0.1%; last -0.3%); 1.2% yr/yr (last 1.2%)
  • Spain's flash November CPI 0.2% m/m (last 0.7%); 3.0% yr/yr, as expected (last 3.1%). November Core CPI 2.6% yr/yr (last 2.5%). October Retail Sales 3.8% yr/yr (last 4.1%). September Current Account surplus EUR1.87 bln (last surplus of EUR5.08 bln)
  • Swiss Q3 GDP -0.5% qtr/qtr (expected -0.4%; last 0.2%); 0.5% yr/yr (last 1.3%). November KOF Leading Indicators 101.7 (expected 100.9; last 101.5)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: +0.2% 
• Italy's FTSE MIB: UNCH 
• Spain's IBEX 35: -0.2%