Stock Market Update

Equity futures now point to a lower opening following the release of the September CPI report.

Asian markets finished mostly lower on Wednesday, with persistent concerns surrounding AI investment spending and renewed strength in oil prices weighing on sentiment. Japan's Nikkei 225 slipped 0.1% for a fifth consecutive decline, with Kioxia Holdings (-3%), Tokyo Electron (-3%), Mizuho Financial (-3%), and Mitsubishi UFJ (-2%) among the laggards. China's Shanghai Composite fell 0.9% to a nearly three-month low, while the Shenzhen Component dropped 2.0% to a more than one-year low as September producer inflation accelerated to 5.0% yr/yr and consumer inflation edged up to 0.9%. Chinese equities weakened despite stronger-than-expected trade and credit data, with exports rising 36.3% yr/yr and imports increasing 31.0%, while Foxconn Industrial Internet (-7%), Zhongji Innolight (-6%), CATL (-3%), and China Life Insurance (-3%) declined. Hong Kong's Hang Seng slipped 0.1%, with Akeso (-10%), Kingboard Laminates (-5%), and Z.AI (-5%) among the notable decliners. Brent crude trading above $106 added to inflation concerns across the region ahead of the upcoming U.S. CPI report.

• In economic data:
  • China's September CPI rose 0.2% m/m (expected 0.3%; prior 0.4%) and 0.9% yr/yr (expected 1.0%; prior 0.8%).
  • China's September PPI rose 5.0% yr/yr (expected 4.4%; prior 3.8%).
  • China's September trade surplus totaled $133.53 bln (expected $116.80 bln; prior $119.09 bln).
  • China's September exports increased 36.3% yr/yr (expected 25.5%; prior 25.0%).
  • China's September imports increased 31.0% yr/yr (expected 24.5%; prior 28.2%).
  • China's September new loans totaled CNY1.080 trln (expected CNY1.025 trln; prior CNY60.0 bln).
  • China's September total social financing totaled CNY3.550 trln (expected CNY3.270 trln; prior CNY1.660 trln).
  • China's September M2 money supply increased 7.2% yr/yr (expected 7.4%; prior 7.5%).
  • China's September outstanding loan growth was 4.8% yr/yr (expected 4.8%; prior 4.9%).
  • India's September WPI inflation rose to 11.39% yr/yr (expected 10.18%; prior 9.92%).
  • India's September manufacturing inflation rose to 9.76% from 8.37%.
  • India's September food inflation rose to 8.14% from 5.67%.
  • India's September fuel inflation rose to 25.85% from 22.93%.

European markets trade mostly higher on Wednesday, with technology shares rebounding after upbeat results from ASML, although rising oil prices and the upcoming U.S. inflation report keep investors cautious. Germany's DAX gains 0.6%, with Infineon (+3%), Vonovia (+3%), MTU Aero Engines (+2%), Rheinmetall (+2%), and BASF (+2%) advancing, while Zalando (-2%) retreats. France's CAC 40 rises 0.6%, with STMicroelectronics (+2%) participating in the broader technology rebound and LVMH (+2%), Hermès (+2%), and Kering (+2%) lifting the luxury sector. London's FTSE 100 gains 0.3%, supported by BAE Systems (+1%), Babcock (+1%), Rolls-Royce (+1%), and Glencore (+1%), while Rio Tinto (-1%) lags. Inflation remains a focus after Spain's September CPI accelerated to 4.9% yr/yr and Germany's wholesale prices jumped 8.7% yr/yr, while renewed Middle East tensions continue to support oil prices. The broader STOXX Europe 600 rises 0.5%, while Spain's IBEX 35 gains 0.5% and Italy's FTSE MIB slips 0.1%.

• In economic data:
  • Germany's September WPI increased 1.9% m/m (expected 0.6%; prior 0.9%) and 8.7% yr/yr (prior 6.8%).
  • Spain's September CPI increased 0.3% m/m (expected 0.3%; prior 0.7%) and 4.9% yr/yr (expected 4.9%; prior 4.3%).
  • Spain's September core CPI increased 3.1% yr/yr (expected 3.1%; prior 2.9%).
  • Spain's September HICP increased 0.6% m/m (expected 0.6%; prior 0.7%) and 5.0% yr/yr (expected 5.0%; prior 4.6%).