Stock Market Update

The S&P 500 futures currently trade 19 points above fair value. 

Equity indices in the Asia-Pacific markets finished mixed on Friday, with Japanese stocks benefiting from some relief in oil and bond markets while Hong Kong remained under pressure and mainland Chinese markets were closed for the Mid-Autumn Festival. Japan's Nikkei 225 rose 1.4% to 66,364 for a fifth straight gain as Japan's 10-year yield eased from its highest level since 1996 and the yen weakened after President Trump reportedly expressed concern to Japan at the UN meeting earlier in the week about the weak yen. Technology shares led the advance, with Kioxia Holdings (+2.2%), Advantest (+2.8%), and Ibiden (+4.2%) higher, while Mitsubishi UFJ (+4.0%), Sumitomo Mitsui (+3.6%), and Mizuho Financial (+4.2%) paced financials. Hong Kong's Hang Seng fell 1.0% to 24,510 for a third consecutive decline as elevated global yields and inflation concerns continued to weigh on sentiment, with AIA (-2.8%), Xiaomi (-2.3%), and HKEX (-1.7%) among the laggards. Investors also digested the Trump-Xi summit and awaited China's PMI data, while the Shanghai Composite remained closed for the holiday.

European markets trade higher, carrying forward the improved tone as falling oil prices and easing government bond yields offer some relief to equities. Germany's DAX rises 0.7%, with Commerzbank (+2.4%), Deutsche Bank (+2.0%), and Siemens Energy among the leaders, despite German consumer sentiment weakening more than expected heading into October. France's CAC 40 gains 0.2% despite a 0.1% quarterly decline in private-sector payrolls, with Société Générale (+2.9%), STMicroelectronics (+2.9%), and Schneider Electric (+2.0%) outperforming. The FTSE 100 advances 0.3% as miners rally, including Glencore (+3%), Anglo American (+3%), and Antofagasta and Fresnillo (+2%), while BP (-2%) and Shell (-1%) retreat with crude. Reports of a potential phased US-Iran agreement that could reopen the Strait of Hormuz provide the primary catalyst for the improved risk tone, while UK consumer confidence improved for a third consecutive month.

• In economic data:
  • Germany's October GfK Consumer Climate fell to -30.6 (expected -27.1; prior -26.8).
  • The U.K.'s September GfK Consumer Confidence improved to -13 (expected -16; prior -14).
  • France's Q2 nonfarm payrolls declined 0.1% quarter-over-quarter (expected -0.1%; prior -0.1%).
  • Spain's Q2 GDP increased 0.7% quarter-over-quarter (expected 0.7%; prior 0.6%) and 2.6% year-over-year (expected 2.7%; prior 2.7%).