Stock Market Update

The S&P 500 futures currently trade 28 points above fair value.

Equity indices in the Asia-Pacific region began November on a higher note while Japan's Nikkei was closed for a holiday. South Korea's Manufacturing PMI (49.4) showed a return to contraction in October while China's RatingDog Manufacturing PMI (50.6) reflected a deceleration in the pace of growth. The U.S. confirmed that the additional 100% tariff on Chinese imports is being suspended for a year while the overall tariff level was reduced to 47% from 57%. The Reserve Bank of Australia will release its latest policy Statement tomorrow, but a rate change is not expected.

• In economic data:
  • China's October RatingDog Manufacturing PMI 50.6 (expected 50.7; last 51.2)
  • South Korea's October trade surplus $6.06 bln (expected surplus of $2.98 bln; last surplus of $9.53 bln). October Imports -1.5% yr/yr (expected -1.4%; last 8.2%) and Exports 3.6% yr/yr (last 12.6%). October Manufacturing PMI 49.4 (last 50.7)
  • India's October Manufacturing PMI 59.2 (last 58.4)
  • Australia's October Manufacturing PMI 49.7 (last 49.7) and October MI Inflation Gauge 0.3% m/m (last 0.4%). September Building Approvals 12.0% m/m (expected 5.1%; last -3.6%); 12.4% yr/yr (last -0.7%) and Private House Approvals 4.0% m/m (last -1.0%). October Commodity Prices -1.3% yr/yr (last 0.1%)
  • New Zealand's September Building Consents 7.2% m/m (last 6.1%)

---Equity Markets---

• Japan's Nikkei: HOLIDAY
• Hong Kong's Hang Seng: +1.0%
• China's Shanghai Composite: +0.6%
• India's Sensex: +0.1%
• South Korea's Kospi: +2.8%
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade in the green. Alphabet will sell six tranches of euro-denominated debt, looking to raise at least EUR3 bln. Ryanair raised its passenger guidance for the year while BP announced an asset sale. The European Central Bank's survey of monetary analysts showed expectations for no change in rates until early 2028, followed by rate hikes. The French government is still struggling to reach a budget agreement.

• In economic data:
  • Eurozone's October Manufacturing PMI 50.0, as expected (last 50.0)
  • Germany's October Manufacturing PMI 49.6, as expected (last 49.6)
  • U.K.'s October Manufacturing PMI 49.7 (expected 49.6; last 49.7)
  • France's October Manufacturing PMI 48.8 (expected 48.3; last 48.8)
  • Italy's October Manufacturing PMI 49.9 (expected 49.3; last 49.0)
  • Spain's October Manufacturing PMI 52.1 (expected 51.8; last 51.5)
  • Swiss October CPI -0.3% m/m (expected -0.1%; last -0.2%); 0.1% yr/yr (expected 0.3%; last 0.2%). October Manufacturing PMI 48.2 (expected 49.3; last 49.0)

---Equity Markets---

• STOXX Europe 600: +0.2%
• Germany's DAX: +0.7%
• U.K.'s FTSE 100: flat
• France's CAC 40: -0.2%
• Italy's FTSE MIB: +0.2%
• Spain's IBEX 35: +0.1%