Stock Market Update

The S&P 500 futures currrently trade six points below fair value

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's wage growth undershot expectations for November due to a drop in one-off bonus payments. Samsung Electronics released its preliminary Q4 report, which beat expectations. Australia's debt outperformed even though Reserve Bank of Australia Deputy Governor Hauser said that the last interest rate cut of the cycle has likely been made. Shanghai Securities News reported that Chinese investors are rushing into equity funds amid weakness in bond prices.

• In economic data:
  • Japan's November Overall Wage Income 0.5% yr/yr (expected 2.3%; last 2.5%) and November Overtime Pay 1.2% yr/yr (last 2.1%). December Household Confidence 37.2 (expected 37.8; last 37.5)
  • Australia's November trade surplus AUD2.936 bln (expected surplus of AUD5.140 bln; last surplus of AUD4.353 bln. November Imports 0.2% m/m (last 2.4%) and Exports -2.9% m/m (last 2.8%)

---Equity Markets---

• Japan's Nikkei: -1.6%
• Hong Kong's Hang Seng: -1.2%
• China's Shanghai Composite: -0.1% 
• India's Sensex: -0.9%
• South Korea's Kospi: UNCH
• Australia's ASX All Ordinaries: +0.3%

Major European indices trade just below their flat lines. European Central Bank policymaker Pereira said that price stability is in place and there is no reason to make any changes to policy at this time, echoing a common sentiment shared among ECB policymakers. Bank of England's Decision Maker Panel lowered its year-ahead CPI forecast to 3.2% from 3.4% while three-year outlook was reduced to 2.9% from 3.0%. Military contractors are among the outperformers after President Trump called for increasing the U.S. military budget to $1.5 trillion in 2027.

• In economic data:
  • Eurozone's December Business and Consumer Survey 96.7 (expected 97.0; last 97.1). November PPI 0.5% m/m (expected 0.4%; last 0.1%); -1.7% yr/yr (expected -1.9%; last -0.5%). November Unemployment Rate 6.3% (expected 6.4%; last 6.4%)
  • Germany's November Factory Orders 5.6% m/m (expected -0.9%; last 1.6%)
  • U.K.'s December Halifax House Price Index -0.6% m/m (expected 0.1%; last -0.1%); 0.3% yr/yr (expected 1.1%; last 0.6%)
  • France's November trade deficit EUR4.2 bln (expected deficit of EUR4.3 bln; last deficit of EUR3.5 bln). November Current Account deficit EUR800 mln (last surplus of EUR1.40 bln) o Italy's November Unemployment Rate 5.7% (expected 6.0%: last 5.8%)
  • Swiss December CPI 0.0% m/m, as expected (last -0.2%); 0.1% yr/yr, as expected (last 0.0%)

---Equity Markets---

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