Stock Market Update

The S&P 500 futures currently trade 44 points below fair value.

Equity indices in the Asia-Pacific region started the week on a mostly lower note with Japan's Nikkei (-1.9%) slipping toward its November low while markets in China climbed. Yields on most JGBs climbed to fresh highs for the year after comments from Bank of Japan Governor Ueda boosted expectations for a rate hike later this month. China's Manufacturing and Non-Manufacturing PMI readings for November pointed to continued contraction while Manufacturing PMI readings from Japan and South Korea also reflected decelerating activity.

• In economic data:
  • China's November Manufacturing PMI 49.2, as expected (last 49.0) and Non-Manufacturing PMI 49.5 (expected 50.0; last 50.1). November RatingDog Manufacturing PMI 49.9 (expected 50.5; last 50.6)
  • Japan's November Manufacturing PMI 48.7 (expected 48.8; last 48.8). Q3 Capital Spending 2.9% yr/yr (expected 5.9%; last 7.6%)
  • South Korea's November trade surplus $9.74 bln (expected surplus of $8.40 bln; last surplus of $6.00 bln). November Imports 1.2% yr/yr (expected 3.4%; last -1.5%) and Exports 8.4% yr/yr (expected 5.7%; last 3.5%). November Manufacturing PMI 49.4 (last 49.4)
  • Hong Kong's October Retail Sales 6.9% yr/yr (last 5.9%)
  • India's November Manufacturing PMI 56.6 (expected 57.4; last 59.2). October Industrial Production 0.4% yr/yr (expected 3.6%; last 4.6%) and October Manufacturing Output 1.8% m/m (last 4.8%)
  • Australia's final November Manufacturing PMI 51.6, as expected (last 51.6). November Commodity Prices -1.7% yr/yr (last -1.3%). November MI Inflation Gauge 0.3% m/m (last 0.3%). Q3 Business Inventories -0.9% qtr/qtr (last 0.1%). Q3 Gross Operating Profits 0.0% qtr/qtr (expected 1.7%; last -2.6%). November ANZ Job Advertisements -0.8% m/m (last -1.9%)
  • New Zealand's October Building Consents -0.9% m/m (last 7.3%)

---Equity Markets---

• Japan's Nikkei: -1.9%
• Hong Kong's Hang Seng: +0.7%
• China's Shanghai Composite: +0.7%
• India's Sensex: -0.1%
• South Korea's Kospi: -0.2%
• Australia's ASX All Ordinaries: -0.6%

Major European indices trade in the red. Final November Manufacturing PMI readings from the region were largely underwhelming. European Central Bank policymaker De Guindos said that the current level of rates is appropriate, echoing comments from other policymakers. Policymaker Nagel shared a similar view, saying that policy is broadly neutral right now. Shares of Airbus have been pressured amid concerns about quality.

• In economic data:
  • Eurozone's November Manufacturing PMI 49.6 (expected 49.7; last 50.0)
  • Germany's November Manufacturing PMI 48.2 (expected 48.4; last 49.6)
  • U.K.'s November Manufacturing PMI 50.2, as expected (last 50.2). October Mortgage Approvals 65,020 (expected 64,000; last 65,650) and October Net Lending to Individuals GBP5.40 bln (expected GBP6.40 bln; last GBP6.60 bln)
  • France's November Manufacturing PMI 47.8, as expected (last 48.8)
  • Italy's November Manufacturing PMI 50.6 (expected 50.1; last 49.9)
  • Spain's November Manufacturing PMI 51.5 (expected 52.3; last 52.1)
  • Swiss October Retail Sales 2.7% yr/yr (expected 1.2%; last 1.8%)

---Equity Markets---

• STOXX Europe 600: -0.4%
• Germany's DAX: -1.1%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.6%
• Italy's FTSE MIB: -0.8%
• Spain's IBEX 35: -0.1%