Stock Market Update

The S&P 500 futures currently trade 13 points below fair value.

Equity indices in the Asia-Pacific region had a mixed showing on Tuesday. The Japanese yen extended yesterday's bounce off this year's low territory against the dollar after Finance Minister Katayama said that the Bank of Japan and the Ministry of Finance are ready and willing to intervene in the foreign exchange market. Japan will keep its general budget below JPY30 trln for fiscal 2026 and assume long-term rates of about 3.0%, representing a 20-year high. The Standing Committee of China's National People's Congress said it will support reasonable financing needs of developers and property firms. New Zealand reached a trade agreement with India.

• In economic data:
  • Japan's October BoJ Core CPI 2.2% yr/yr, as expected (last 2.2%)
  • Singapore's November CPI 0.3% m/m (last 0.0%); 1.2% yr/yr (expected 1.3%; last 1.2%). November Core CPI 1.2% yr/yr, as expected (last 1.2%)

---Equity Markets---

• Japan's Nikkei: UNCH
• Hong Kong's Hang Seng: -0.1%
• China's Shanghai Composite: +0.1%
• India's Sensex: -0.1%
• South Korea's Kospi: +0.3%
• Australia's ASX All Ordinaries: +1.1%

Major European indices trade on a mostly lower note amid reduced participation ahead of tomorrow's Christmas Eve closure in Germany, Switzerland, and Italy and early closes in the U.K., Spain, and France. European Central Bank policymaker Schnabel said that a rate hike should not be expected in the near future, echoing recent comments from other policymakers. A spokesperson from the Russian government said that the recent talks in Florida about ending the war in Ukraine should not be seen as a breakthrough.

• In economic data:
  • Germany's November Import Price Index 0.5% m/m (expected 0.2%; last 0.2%); -1.9% yr/yr (last -1.4%)
  • Italy's November non-EU trade surplus EUR6.92 bln (last surplus of EUR5.32 bln)
  • Spain's November PPI -2.5% yr/yr (last 0.8%). Q3 GDP 0.6% qtr/qtr, as expected (last 0.7%); 2.8% yr/yr, as expected (last 2.9%)
  • Swiss December ZEW Expectations 6.2 (last 12.2)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: -0.2%
• France's CAC 40: -0.4%
• Italy's FTSE MIB: -0.2%
• Spain's IBEX 35: -0.2%