Stock Market Update

The S&P 500 futures currently trade 20 points above fair value. 

Equity indices in the Asia-Pacific region began the week on a higher note with Japan's Nikkei (+3.0%) approaching its record high from October. President Trump repeated that he plans to travel to China in April. Minimax, a competitor to DeepSeek, is expected to have a strong exchange debut in Hong Kong. Goldman Sachs expects China's GDP to grow about 4.8% in 2026. Honda is considering a production pause in China due to chip shortages. Japan's Manufacturing PMI emerged from contraction in the final reading for December (50.0).

• In economic data:
  • China's December RatingDog Services PMI 52.0, as expected (last 52.1)
  • Japan's December Manufacturing PMI 50.0 (expected 49.7; last 48.7)
  • Singapore's November Retail Sales 0.0% m/m (last 2.3%); 6.3% yr/yr (last 4.4%)

---Equity Markets---

• Japan's Nikkei: +3.0%
• Hong Kong's Hang Seng: UNCH
• China's Shanghai Composite: +1.4%
• India's Sensex: -0.4%
• South Korea's Kospi: +3.4%
• Australia's ASX All Ordinaries: UNCH

Major European indices trade mostly higher with military contractors among the leaders. There are growing worries that the unemployment rate in the U.K. could reach an 11-year high in 2026. Asset manager Ashmore Group has shown strength in the U.K. after the weekend capture of Venezuela's Nicolas Maduro.

• In economic data:
  • U.K.'s November BoE Consumer Credit GBP2.077 bln (last GBP1.713 bln). November Mortgage Lending GBP4.49 bln (expected GBP4.80 bln; last GBP4.16 bln) and November Net Lending to Individuals GBP6.60 bln (expected GBP5.20 bln; last GBP5.40 bln)
  • Spain's December Unemployment Change -16,300 (expected 5,700; last -18,800)
  • Swiss November Retail Sales 2.3% yr/yr (expected 2.5%; last 2.2%). December Manufacturing PMI 45.8 (expected 49.9; last 49.7)

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX: +0.8%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: +0.7%
• Spain's IBEX 35: +0.2%