Stock Market Update

The S&P 500 futures currently trade 23 points above fair value. 

Equity indices in the Asia-Pacific region had a mixed showing with Japan's Nikkei (+4.8%) soaring to a fresh record high while markets in China and South Korea were closed for holidays. The outperformance in Japan followed the election of Sanae Takaichi as the new leader of LDP. The new conservative leader, who is seen as a proponent of Abenomics, is expected to become prime minister after a full parliamentary vote in mid-October. Most members of the Reserve Bank of New Zealand's shadow board support a rate cut on Tuesday night.

• In economic data:
  • Hong Kong's September Manufacturing PMI 50.4 (last 50.7)
  • India's September Services PMI 60.9 (expected 61.6; last 63.2)
  • Australia's September MI Inflation Gauge 0.4% m/m (last -0.3%)
  • New Zealand's September ANZ Commodity Price Index -1.1% m/m (last 0.7%)

---Equity Markets---

• Japan's Nikkei: +4.8%
• Hong Kong's Hang Seng: -0.7%
• China's Shanghai Composite: HOLIDAY
• India's Sensex: +0.7%
• South Korea's Kospi: HOLIDAY
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade near their flat lines while France's CAC (-1.3%) underperforms after Prime Minister Lecornu resigned due to broad opposition to fiscal plans. It is currently unclear if President Macron will attempt to name his sixth prime minister or dissolve the National Assembly, leading to new elections. European Central Bank policymaker De Guindos said that rates are at an appropriate level, but uncertainty remains high.

• In economic data:
  • Eurozone's August Retail Sales 0.1% m/m, as expected (last -0.4%); 1.0% yr/yr (last 2.1%). October Sentix Investor Confidence -5.4 (expected -7.5; last -9.2)
  • U.K.'s September Construction PMI 46.2 (expected 46.1; last 45.5)
  • Spain's August Industrial Production 3.4% yr/yr (last 2.7%)
  • Swiss September Unemployment Rate 3.0% (expected 2.9%; last 2.9%)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: -1.3%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: +0.2%