Stock Market Update

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

Equity indices in the Asia-Pacific region had a mostly lower showing on Tuesday. South Korea's Retail Sales (-3.3% m/m) for November fell at their fastest pace in nearly two years due to lower sales of food and apparel. Separately, South Korea's finance ministry is expected to present a roadmap for the country's inclusion in the MSCI Developed Market Index early next year. Samsung and SK Hynix received U.S. approval to ship chip fabrication tools to China and there were reports that the U.S. may implement an annual system for granting these licenses. China's offshore yuan reached its strongest level against the dollar in 15 months. Markets in Japan and South Korea will be closed entirely tomorrow while markets in Australia, New Zealand, and Hong Kong will close early.

• In economic data:
  • South Korea's November Industrial Production 0.6% m/m (expected 2.2%; last -4.2%); -1.4% yr/yr (expected 3.0%; last -8.2%). November Retail Sales -3.3% m/m (last 3.6%) and November Service Sector Output 0.7% m/m (last -0.7%)

---Equity Markets---

• Japan's Nikkei: -0.4%
• Hong Kong's Hang Seng: +0.9%
• China's Shanghai Composite: UNCH
• India's Sensex: UNCH
• South Korea's Kospi: -0.2%
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade in the green ahead of tomorrow's full day closures in Germany, Switzerland, and Italy, and early closures scheduled for the U.K., Spain, and France. Spain reported strong Retail Sales growth for November (6.0% yr/yr), combined with a decelerating CPI for December (to 2.9% from 3.0%). Sweden's Riksbank noted in its Minutes from the December meeting that policy should remain at its current level for some time, echoing the European Central Bank's view.

• In economic data:
  • Spain's December CPI 0.3% m/m (last 0.2%); 2.9% yr/yr (expected 2.8%; last 3.0%). December Core CPI 2.6% yr/yr (last 2.6%). November Retail Sales 6.0% yr/yr (last 3.9%) and October Current Account surplus EUR7.18 bln (last surplus of EUR1.87 bln)
  • Swiss December KOF Leading Indicators 103.4 (expected 101.5; last 101.7)

---Equity Markets---

• STOXX Europe 600: +0.5%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: +0.5%
• France's CAC 40: +0.5%
• Italy's FTSE MIB: +1.2%
• Spain's IBEX 35: +0.8%