Stock Market Update

The S&P 500 futures currently trade 25 points below fair value. 

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Australia's employment decreased unexpectedly in November, but the Unemployment Rate remained at 4.3% as the Participation rate fell to 66.7% from 66.9%. Japan sold 20-yr JGBs to solid demand. The Japanese government plans to offer corporate tax credits on some investments and lower the threshold for the income tax on the wealthiest individuals. South Korea's exports were up 17.3% yr/yr through the first ten days of December with chip shipments jumping 45.9%. The Hong Kong Monetary Authority followed yesterday's rate cut from the FOMC with its own 25-basis point reduction to 4.00%.

• In economic data:
  • Japan's Q4 BSI Large Manufacturing Conditions 4.7 (expected 4.1; last 3.8)
  • Australia's November Employment Change -21,300 (expected 20,000; last 41,100) and full employment change -56,500 (last 55,300). November Unemployment Rate 4.3% (expected 4.4%; last 4.3%) and Participation Rate 66.7% (expected 67.0%; last 66.9%)
  • New Zealand's Q3 Manufacturing Sales Volume 1.1% qtr/qtr (last -2.8%)
  • Singapore's Q3 Unemployment Rate 2.0%, as expected (last 2.0%)

---Equity Markets---

• Japan's Nikkei: -0.9%
• Hong Kong's Hang Seng: UNCH
• China's Shanghai Composite: -0.7%
• India's Sensex: +0.5%
• South Korea's Kospi: -0.6% 
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade in the green. Volkswagen is expected to decide today how to spend its five-year EUR160 bln investment budget. German Chancellor Merz is reportedly trying to organize a meeting on Ukraine sometime next week. The Swiss National Bank left its policy rate at 0.00%, as expected. The central bank did not rule out cutting rates into negative territory if needed.

• In economic data:
  • Italy's Q3 Unemployment Rate 6.1% (expected 6.3%; last 6.3%)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.4%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: +0.6%
• Italy's FTSE MIB: +0.6%
• Spain's IBEX 35: +0.9%