Stock Market Update

The S&P 500 futures currently trade 26 points below fair value.

Equity indices in the Asia-Pacific region had a mixed start to the final week of 2025 with South Korea's Kospi (+2.2%) settling just below its record high from November. The Bank of Japan released its summary of opinions from the December meeting, with some policymakers believing that steady rate hikes are needed to avoid falling behind the curve. JGBs faced pressure across the board with the front end hitting fresh lows for the year. China announced that military drills will be held near Taiwan tomorrow.

• In economic data:
  • China's November Industrial Profit 0.1% YTD (last 1.9%)
  • Hong Kong's November trade deficit HKD48.5 bln (last deficit of HKD39.9 bln). November Imports 18.1% m/m (last 18.3%) and Exports 18.8% m/m (last 17.5%)
  • India's November Industrial Production 6.7% yr/yr (expected 2.5%; last 0.5%) and Manufacturing Output 8.0% m/m (last 2.0%)

---Equity Markets---

• Japan's Nikkei: -0.4%
• Hong Kong's Hang Seng: -0.7%
• China's Shanghai Composite: UNCH
• India's Sensex: -0.4%
• South Korea's Kospi: +2.2%
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade near their flat lines after returning from last week's Christmas closures. Military contractors are under pressure amid growing hopes that a Russia-Ukraine peace deal could be finalized in the coming weeks. Ukraine's President Zelensky visited the U.S. over the weekend and asked that the U.S. guarantee Ukraine's security for 50 years as part of a potential peace plan.

• In economic data:
  • France's November jobseeker total 3.129 mln (last 3.151 mln)

---Equity Markets---

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