Stock Market Update

The S&P 500 futures currently trade six points above fair value.

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note with Japan's Nikkei (+2.3%) reaching a three-week high. People's Bank of China Governor Pan published an op-ed in People's Daily, calling for prudent monetary policy, which represents a shift from the summer when policy was described as moderately loose. The comments were made as the yuan reached a 14-month high against the dollar. Japan's 10-yr yield climbed above 1.90% to its highest level since 2007 despite a strong 30-yr JGB auction. Expectations for 2026 rate hike from the Reserve Bank of Australia climbed again after the release of a strong Household Spending report.

• In economic data:
  • Australia's October trade surplus AUD4.385 bln (expected surplus of AUD4.440 bln; last surplus of AUD3.707 bln). October Imports 2.0% m/m (last 1.8%) and Exports 3.4% m/m (last 7.6%). October Household Spending 1.3% m/m (last 0.3%); 5.6% yr/yr (last 5.1%)

---Equity Markets---

• Japan's Nikkei: +2.3%
• Hong Kong's Hang Seng: +0.7%
• China's Shanghai Composite: -0.1%
• India's Sensex: +0.2%
• South Korea's Kospi: -0.2%
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade in the green with Germany's DAX (+1.0%) showing relative strength thanks to leadership from automakers after President Trump announced a plan to reduce fuel efficiency standards for passenger vehicles. European Central Bank policymaker Cipollone said that the governing council is making decisions on a per-meeting basis and that the economy has been resilient. The Bank of England's Decision Maker Panel left its year-ahead CPI forecast at 3.4% while the three-year outlook was increased to 3.0% from 2.9%. 

• In economic data:
  • Eurozone's October Retail Sales 0.0% m/m, as expected (last 0.1%); 1.5% yr/yr (expected 1.4%; last 1.2%)
  • U.K.'s November Construction PMI 39.4 (expected 44.5; last 44.1)
  • Swiss November Unemployment Rate 3.0%, as expected (last 3.0%). November Manufacturing PMI 49.7 (expected 48.9; last 48.2)

---Equity Markets---

• STOXX Europe 600: +0.5% 
• Germany's DAX: +1.0%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: +0.5% 
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: +0.7%