Stock Market Update

The S&P 500 futures currently trade 69 points below fair value.

Equity indices in the Asia-Pacific region ended the week on a mostly lower note. China reported its growth figures for October, revealing some softness in fixed asset investment and industrial production. There was speculation about South Korea taking steps to stabilize the won as continued weakness in the currency has it trading near its lowest level against the dollar since 2009. Officials from South Korea and the U.S. officially signed the trade and investment deal.

• In economic data:
  • China's October Fixed Asset Investment -1.7% yr/yr (expected -0.9%; last -0.5%), October Industrial Production 4.9% yr/yr (expected 5.5%; last 6.5%), October Retail Sales 2.9% yr/yr (expected 2.7%; last 3.0%); 3.3% yr/yr (last 3.5%). October Unemployment Rate 5.1% (expected 5.2%; last 5.2%). October House Prices -2.2% yr/yr (last -2.2%)
  • South Korea's October Import Price Index 0.5% yr/yr (last 0.6%) and Export Price Index 4.8% yr/yr (last 2.2%)
  • India's October WPI Inflation -1.21% yr/yr (expected -0.60%; last 0.13%)
  • Hong Kong's Q3 GDP 0.7% qtr/qtr, as expected (last 0.7%); 3.8% yr/yr, as expected (last 3.8%)
  • New Zealand's October Business PMI 51.4 (last 50.1)

---Equity Markets---

• Japan's Nikkei: -1.8% 
• Hong Kong's Hang Seng: -1.9%
• China's Shanghai Composite: -1.0% 
• India's Sensex: +0.1%
• South Korea's Kospi: -3.8% 
• Australia's ASX All Ordinaries: -1.4%

Major European indices trade in the red. The British pound and gilts have faced some pressure amid press reports suggest that Chancellor Reeves will not seek higher income taxes in the Autumn budget statement thanks to improved economic projections from the Office of Budget Responsibility. However, other taxes are still expected to increase. Germany's budget committee approved 2026 spending of EUR524.5 bln and nearly EUR100 bln in borrowing.

• In economic data:
  • Eurozone's Q3 GDP 0.2% qtr/qtr, as expected (last 0.1%); 1.4% yr/yr (expected 1.3%; last 1.5%). Q3 Employment Change 0.1% qtr/qtr, as expected (last 0.1%); 0.5% yr/yr (last 0.6%). September trade surplus EUR19.4 bln (last surplus of EUR1.9 bln)
  • France's October CPI 0.1% m/m, as expected (last -1.0%); 0.9% yr/yr (expected 1.0%; last 1.2%)
  • Italy's September trade surplus EUR2.852 bln (expected surplus of EUR3.180 bln; last surplus of EUR1.875 bln)
  • Spain's October CPI 0.7% m/m, as expected (last -0.3%); 3.1% yr/yr, as expected (last 3.0%). October Core CPI 2.5% yr/yr, as expected (last 2.4%)

---Equity Markets---

• STOXX Europe 600: -1.6% 
• Germany's DAX: -1.5%
• U.K.'s FTSE 100: -1.6% 
• France's CAC 40: -1.3%
• Italy's FTSE MIB: -2.1%
• Spain's IBEX 35: -1.9%