Stock Market Update

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

Equity indices in the Asia-Pacific region ended Tuesday on a lower note. President Trump met with Japan's Emperor Naruhito and Prime Minister Takaichi. The two sides said that they are working toward a new golden age for the U.S.-Japan alliance. Press reports from Japan suggest that about ten companies have expressed interest in about $400 bln worth of investment projects in the U.S. Reserve Bank of Australia Governor Bullock said that current RBA policy remains a bit restrictive.

• In economic data:
  • Japan's September BoJ Core CPI 2.1% yr/yr, as expected (last 2.0%)
  • South Korea's flash Q3 GDP 1.2% qtr/qtr (last 0.7%); 1.7% yr/yr (expected 0.9%; last 0.6%). October Consumer Confidence 109.8 (last 110.1)
  • India's September Industrial Production 4.0% yr/yr (last 4.0%) and Manufacturing Output 4.8% m/m (last 3.8%)

---Equity Markets---

• Japan's Nikkei: -0.6%
• Hong Kong's Hang Seng: -0.3%
• China's Shanghai Composite: -0.2%
• India's Sensex: -0.2%
• South Korea's Kospi: -0.8%
• Australia's ASX All Ordinaries: -0.6%

Major European indices trade near their flat lines. Germany's consumer confidence weakened in November, reflecting continued sluggishness in the overall economy. The European Central Bank's Q3 lending survey showed slight tightening in overall credit standards. The French government paved the way for higher corporate taxes on large companies. BNP Paribas missed profit expectations for Q3.

• In economic data:
  • Germany's November GfK Consumer Climate -24.1 (expected -22.0; last -22.5)
  • Italy's October Business Confidence 88.3 (expected 87.5; last 87.4) and Consumer Confidence 97.6 (last 96.8)

---Equity Markets---

• STOXX Europe 600: -0.2%
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: +0.5%
• France's CAC 40: -0.2%
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: +0.2%