Stock Market Update

Equity futures point to a lower opening this morning following a solid Christmas holiday week for the stock market. Though volume and flow were both lighter than average, the major averages all captured gains over 1.0% for the week, with the S&P notching fresh record highs. 

This week's action will also be holiday abbreviated, as the market will close on Thursday for the New Year's Day holiday. 

Headlines are relatively slim this morning, though there are a few geopolitical developments that are stirring some tension. NBC News reports that President Trump and Ukrainian President Volodymyr Zelenskyy met and indicated they are close to a deal to end Russia's war with Ukraine. However, President Trump acknowledged there are "one or two very thorny issues" that remain unresolved.

Additionally, Bloomberg reports that China has begun conducting some military exercises around Taiwan. 

Market participants will receive November pending home sales data at 10:00 a.m. ET. 

In corporate news:

• Alphabet's (GOOG 313.15, -1.81, -0.6%) Waymo outages are raising questions, according to Reuters. 
• Novo Nordisk A/S (NOVO 51.58, -0.82, -1.6%) lowers the price of Wegovy in some Chinese provinces by 50%, according to Bloomberg. 
• SoftBank (SFTBY 56.76, +1.61, +0.9%) is in advanced discussions to acquire DigitalBridge Group (DBRG 17.85, +3.93, +28.2%), according to Bloomberg. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed start to the final week of 2025 with South Korea's Kospi (+2.2%) settling just below its record high from November. Japan's Nikkei: -0.4%, Hong Kong's Hang Seng: -0.7%, China's Shanghai Composite: UNCH, India's Sensex: -0.4%, South Korea's Kospi: +2.2%, Australia's ASX All Ordinaries: -0.4%.

In news:

• The Bank of Japan released its summary of opinions from the December meeting, with some policymakers believing that steady rate hikes are needed to avoid falling behind the curve.
• JGBs faced pressure across the board with the front end hitting fresh lows for the year.
• China announced that military drills will be held near Taiwan tomorrow.

In economic data:

• China's November Industrial Profit 0.1% YTD (last 1.9%)
• Hong Kong's November trade deficit HKD48.5 bln (last deficit of HKD39.9 bln). November Imports 18.1% m/m (last 18.3%) and Exports 18.8% m/m (last 17.5%)
• India's November Industrial Production 6.7% yr/yr (expected 2.5%; last 0.5%) and Manufacturing Output 8.0% m/m (last 2.0%)

Major European indices trade near their flat lines after returning from last week's Christmas closures. STOXX Europe 600: +0.1%, Germany's DAX: -0.1%, U.K.'s FTSE 100: flat, France's CAC 40: +0.1%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: flat.

In news:

• Military contractors are under pressure amid growing hopes that a Russia-Ukraine peace deal could be finalized in the coming weeks.
• Ukraine's President Zelensky visited the U.S. over the weekend and asked that the U.S. guarantee Ukraine's security for 50 years as part of a potential peace plan.

In economic data:

• France's November jobseeker total 3.129 mln (last 3.151 mln)