Stock Market Update

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

Equity indices in the Asia-Pacific finished mixed on Tuesday, with Chinese equities little changed while Hong Kong extended its winning streak amid renewed strength in AI and semiconductor shares. Alibaba (BABA 119.39, +3.63, +3.14%) introduced a new AI chip. China's Shanghai Composite finished near the flatline at 3,952, while the Shenzhen Component edged lower as investors assessed high-level US-China talks ahead of this week's Trump-Xi summit, with trade, AI, and rare-earth supplies among the issues in focus. Hygon Information Technology (+3.9%), China Shenhua Energy (+1.5%), and PetroChina (+1.1%) advanced, while Zhongji Innolight (-1.4%) and Suzhou TFC Optical Communication (-1.2%) declined. Hong Kong's Hang Seng Index gained 0.2% for a third straight day, supported by lower oil prices and tech strength, with Tencent (+5.0%), Lenovo (+2.8%), and Innovent Biologics (+0.7%) higher. Z.AI (-6.6%) and MiniMax (-3.4%) bucked the technology advance, while Hong Kong's active IPO pipeline and speculation that the RBA will raise rates at its September meeting remained in focus. Japan's Nikkei 225 was closed for a public holiday.

• In economic data:
  • There was no economic data of note.

Major European indices are mostly higher, with investors eyeing a further decline in oil prices and a busy diplomatic calendar centered on the UN General Assembly and this week's US-China summit. Germany's DAX 40 reverses an early decline to gain 0.6%, with RWE (+1.4%), Scout24 (+1.2%), and Adidas (+1.0%) leading gains, while Allianz, Vonovia, Deutsche Bank, BMW, and Mercedes-Benz fall between 1.0% and 2.3%. France's CAC 40 rises 0.5%, supported by STMicroelectronics (+1.2%), Air Liquide (+1.1%), ENGIE (+1.1%), and TotalEnergies (+1.0%), while Société Générale (-1.2%), BNP Paribas (-0.8%), and Crédit Agricole (-0.7%) lag. London's FTSE 100 hovers 0.1% higher after Monday's 0.8% advance, with Kingfisher surging more than 7% after raising its profit guidance and Smiths Group gaining about 4.5% following higher revenue. UK government borrowing reached £18.3 bln in August, exceeding expectations of £15.5 bln, while April-August borrowing of £77.3 bln also topped the OBR's forecast.

• In economic data:
  • U.K. government borrowing reached GBP18.3 bln in August (expected GBP15.5 bln), while April-August borrowing totaled GBP77.3 bln, also above the OBR's forecast.
  • U.K.'s September CBI Industrial Trends Orders came in at -9 (expected -33; prior -25).
  • Spain's July trade balance was -EUR5.22 bln (prior -EUR7.69 bln).