Stock Market Update

The S&P 500 futures currently trade 21 points above fair value.

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Press reports from Japan suggested that the Bank of Japan could announce its next rate hike at the December meeting with the market growing more confident that the hike will be announced before the end of January. A large Japanese seafood company announced price hikes on its frozen products. The Reserve Bank of New Zealand lowered its cash rate by 25 basis points to 2.25%, as expected. The central bank noted that it sees risks as balanced at this time, leaving the option of another rate cut on the table for 2026. The Bank of Korea will release its latest statement overnight, but the policy rate is expected to remain at 2.50%.

• In economic data:
  • Japan's October Corporate Services Price Index 2.7% yr/yr, as expected (last 3.1%) and September BoJ Core CPI 2.2% yr/yr, as expected (last 2.1%). September Leading Index 108.6 (expected 108.0; last 107.0)
  • South Korea's November Business Confidence 70 (last 68)
  • Singapore's October Industrial Production 11.5% m/m (expected -3.5%; last 26.4%); 29.1% yr/yr (expected 9.5%; last 16.2%)
  • Australia's Q3 Construction Work Done -0.7% qtr/qtr (expected 0.2%; last 2.9%). October CPI 0.0% m/m (last 0.5%); 3.8% yr/yr (last 3.6%)

---Equity Markets---

• Japan's Nikkei: +1.9%
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: -0.2%
• India's Sensex: +1.2%
• South Korea's Kospi: +2.7%
• Australia's ASX All Ordinaries: +0.9%

Major European indices trade higher. British Chancellor Reeves is expected to call for GBP30 bln in new revenue during her Autumn budget statement that is scheduled to begin at 7:30 ET. European Central Bank policymaker Vujcic said that risks to growth and inflation are balanced at this time while policymaker De Guindos said that trade uncertainty has receded. The International Monetary Fund voiced concern that the German economy is at risk of undershooting growth expectations without reforms.

• In economic data:
  • Swiss November ZEW Expectations 12.2 (last -7.7)

---Equity Markets---

• STOXX Europe 600: +0.9%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: +0.6%
• France's CAC 40: +0.6%
• Italy's FTSE MIB: +0.9%
• Spain's IBEX 35: +0.8%