Stock Market Update

The S&P 500 futures currently trade 75 points below fair value. 

Equity indices in the Asia-Pacific region ended Tuesday on a lower note with Japan's Nikkei (-1.7%) and South Korea's Kospi (-2.4%) reversing from record highs. South Korea's CPI accelerated to 2.4% yr/yr in October, but the Bank of Korea expects a swift return to the 2.0% target. Japan's Manufacturing PMI (48.2) remained in contraction for the fourth consecutive month. The Reserve Bank of Australia left its cash rate at 3.60%, as expected, and Governor Bullock left the door open to a potential future change in either direction.

• In economic data:
  • Japan's October Manufacturing PMI 48.2 (expected 48.3; last 48.3)
  • South Korea's October CPI 0.3% m/m (expected 0.0%; last 0.5%); 2.4% yr/yr (expected 2.1%; last 2.1%)

---Equity Markets---

• Japan's Nikkei: -1.7%
• Hong Kong's Hang Seng: -0.8%
• China's Shanghai Composite: -0.4%
• India's Sensex: -0.6%
• South Korea's Kospi: -2.4%
• Australia's ASX All Ordinaries: -0.9%

Major European indices trade in the red. British Chancellor Reeves appears to be considering a tax hike to plug a GBP22 bln budget gap while Prime Minister Starmer told members of his party that the Autumn budget will include "tough but fair" decisions. European Central Bank policymaker Rehn said that economic uncertainty remains elevated while policymaker Patsalides said that competitiveness in the EU needs to be improved.

• In economic data:
  • France's September government budget balance -EUR155.4 bln (last deficit of EUR157.5 bln)
  • Spain's October Unemployment Change 22,100 (expected 5,200; last -4,800)

---Equity Markets---

• STOXX Europe 600: -0.7%
• Germany's DAX: -1.0%
• U.K.'s FTSE 100: -0.4%
• France's CAC 40: -0.9%
• Italy's FTSE MIB: -0.5%
• Spain's IBEX 35: -0.6%