Stock Market Update

The S&P 500 futures currently trade in line with fair value.

Equity indices in the Asia-Pacific region had a higher finish to the week. China held its Central Economic Work Conference with officials pledging a continuation of fiscal expansion and more interest rate and reserve requirement ratio cuts. Japan is planning to make Hokkaido its base for advanced chip development. Large Japanese food producer Ajinomoto is raising the prices of some of its products by double digits. Banko Sentral ng Pilipinas lowered its policy rate by 25 basis points to 4.50%, as expected.

• In economic data:
  • China's November New Loans CNY390.0 bln (last CNY220.0 bln). November Outstanding Loan Growth 6.4% yr/yr (last 6.5%) and total social financing CNY2.49 trln (last CNY810.0 bln)
  • Japan's October Industrial Production 1.5% m/m (expected 1.4%; last 2.6%) and Capacity Utilization 3.3% m/m (last 2.5%)
  • South Korea's November Import Price Index 2.2% yr/yr (last 0.5%); 7.0% yr/yr (last 4.8%)
  • India's November CPI 0.71% yr/yr (expected 0.70%; last 0.25%)
  • New Zealand's November Business PMI 51.4 (last 51.2). November Electronic Card Retail Sales 1.2% m/m (last 0.2%); 1.6% yr/yr (last 0.8%)

---Equity Markets---

• Japan's Nikkei: +1.4%
• Hong Kong's Hang Seng: +1.8%
• China's Shanghai Composite: +0.4%
• India's Sensex: +0.5% 
• South Korea's Kospi: +1.4%
• Australia's ASX All Ordinaries: +1.2%

Major European indices trade in the green with banks contributing to the advance. The U.K.'s GDP contracted slightly in October, putting the Q4 reading at risk of a contraction ahead of next week's policy meeting at the Bank of England that could result in a rate cut. The EU will freeze Russian central bank assets held in Europe indefinitely and could use a large portion to fund a loan for Ukraine.

• In economic data:
  • Germany's November CPI -0.2% m/m, as expected (last 0.3%); 2.3% yr/yr, as expected (last 2.3%)
  • U.K.'s October GDP -0.1% m/m (expected 0.1%; last -0.1%); 1.1% yr/yr (expected 1.4%; last 1.1%). Construction Output -0.6% m/m (expected -0.1%; last 0.2%); 0.9% yr/yr (expected 1.6%; last 1.3%). October Industrial Production 1.1% m/m (expected 0.9%; last -2.0%); -0.8% yr/yr (expected -1.2%; last -2.5%). October Manufacturing Production 0.5% m/m (expected 1.1%: last -1.7%); -0.8% yr/yr (expected -0.1%; last -2.2%). October trade deficit GBP22.54 bln (expected deficit of GBP19.10 bln; last deficit of GBP18.88 bln)
  • France's November CPI -0.2% m/m (expected -0.1%; last 0.1%); 0.9% yr/yr, as expected (last 0.9%)
  • Spain's November CPI 0.2% m/m, as expected (last 0.7%); 3.0% yr/yr, as expected (last 3.1%). November Core CPI 2.6% yr/yr, as expected (last 2.5%)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.3%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: +0.5%
• Italy's FTSE MIB: +0.4% 
• Spain's IBEX 35: +0.5%