Stock Market Update

The S&P 500 futures currently trade five points above fiar value.

Equity indices in the Asia-Pacific region had a mostly higher finish to the week while markets in China and South Korea were closed for holidays. Hitachi had a strong showing in Japan after signing an infrastructure deal with OpenAI. Bank of Japan Governor Ueda said that the central bank must maintain accommodative policy, which was seen as a slight pushback to rising rate hike expectations. Japan's LDP leadership vote will take place tomorrow with Agriculture Minister Shinjiro Koizumi still seen as a slight favorite.

• In economic data:
  • Japan's August Unemployment Rate 2.6% (expected 2.4%; last 2.3%) and jobs/applications ratio 1.20 (expected 1.22; last 1.22). September Services PMI 53.3 (expected 53.0; last 53.1)
  • Singapore's August Retail Sales 0.5% m/m (last 3.9%); 5.2% yr/yr (last 4.6%)
  • Australia's September Services PMI 52.4 (expected 52.0; last 55.8)

---Equity Markets---

• Japan's Nikkei: +1.9% (+0.9% for the week)
• Hong Kong's Hang Seng: -0.5% (+3.9% for the week)
• China's Shanghai Composite: HOLIDAY (+1.4% for the week)
• India's Sensex: +0.3% (+1.0% for the week)
• South Korea's Kospi: HOLIDAY (+4.8% for the week)
• Australia's ASX All Ordinaries: +0.5% (+2.3% for the week)

Major European indices trade mostly higher. France's socialist party is seeking to prevent pension reform or push through a tax on individuals with high net worth. U.K.'s Office of Budget Responsibility will publish some forecasts today that will help shape the autumn budget statement on November 26. Italy lowered its growth forecast for 2025 to 0.5% from 0.6% while the outlook for 2026 was reduced to 0.7% from 0.8%. The 2025 budget deficit target was lowered to 3.0% from 3.3% due to strong tax revenues.

• In economic data:
  • Eurozone's September Services PMI 51.3 (expected 51.4; last 50.5). August PPI -0.3% m/m (expected -0.1%; last 0.3%); -0.6% yr/yr (expected -0.4%; last 0.2%)
  • Germany's September Services PMI 51.5 (expected 52.5; last 49.3)
  • U.K.'s September Services PMI 50.8 (expected 51.9; last 54.2)
  • France's August Industrial Production -0.7% m/m (expected 0.3%; last -0.1%). September Services PMI 48.5 (expected 48.9; last 49.8)
  • Italy's September Services PMI 52.5 (expected 51.5; last 51.5). August Retail Sales -0.1% m/m (expected 0.0%; last 0.0%); 0.5% yr/yr (last 1.8%). Q2 Public Deficit 2.0% (last 8.1%)
  • Spain's September Services PMI 54.3 (expected 53.3; last 53.2)

---Equity Markets---

• STOXX Europe 600: +0.3% (+2.7% week-to-date)
• Germany's DAX: -0.2% (+2.8% week-to-date)
• U.K.'s FTSE 100: +0.5% (+2.0% week-to-date)
• France's CAC 40: -0.2% (+2.3% week-to-date)
• Italy's FTSE MIB: +0.4% (+1.4% week-to-date)
• Spain's IBEX 35: +0.6% (+1.6% week-to-date)