Stock Market Update

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

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note with Japan's Nikkei (+1.2%) reaching a fresh record with some help from a cool PPI reading for August. Still, the market's expectations for a rate hike by the end of 2025 increased. The Bank of Japan is reportedly preparing to start selling ETFs as part of its portfolio unwind. Mexico will increase its tariff on imports of vehicles from Asia to 50% from 20%.

• In economic data:
  • Japan's Q3 BSI Large Manufacturing Conditions 3.8 (expected -3.3; last -4.8). August PPI -0.2% m/m (expected -0.1%; last 0.3%); 2.7% yr/yr, as expected (last 2.5%)
  • Australia's September MI Inflation Expectations 4.7% (last 3.9%)

---Equity Markets---

• Japan's Nikkei: +1.2%
• Hong Kong's Hang Seng: -0.4%
• China's Shanghai Composite: +1.7%
• India's Sensex: +0.2%
• South Korea's Kospi: +0.9%
• Australia's ASX All Ordinaries: -0.3%

Major European indices trade in the green ahead of the European Central Bank's policy update at 8:15 ET, though the market does not expect another rate cut until later this year. Germany's association of exporters expects 2025 export growth of just 2.5% while imports are expected to show 4.5% growth. Volkswagen pledged to resist China's entry into the European market.

• No data today

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +0.8%
• Italy's FTSE MIB: +0.7%
• Spain's IBEX 35: +0.4%