Stock Market Update

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

Equity indices in the Asia-Pacific region ended the year on a mixed note while markets in Japan and South Korea were closed. China's PMI readings for December returned into expansionary territory by a slight margin, beating expectations. The Chinese government plans to continue issuing trade-in subsidies for auto purchases in 2026 and will expand the program to include digital and smart products. Bytedance plans to increase its purchases of chips from NVIDIA by 17% yr/yr. China Securities Journal reported that domestic banks will slash business loan rates below 3.0%.

• In economic data:
  • China's December Manufacturing PMI 50.1 (expected 49.2; last 49.2) and Non-Manufacturing PMI 50.2 (expected 49.6; last 49.5). December RatingDog Manufacturing PMI 50.1 (expected 49.8; last 49.9)
  • South Korea's December CPI 0.3% m/m (expected 0.2%; last -0.2%); 2.3% yr/yr, as expected (last 2.4%)
  • Hong Kong's November M3 Money Supply 4.5% yr/yr (last 3.5%)
  • Singapore's November Bank Lending SGD873.1 bln (last SGD866.1 bln)

---Equity Markets---

• Japan's Nikkei: CLOSED (+26.2% in 2025)
• Hong Kong's Hang Seng: -0.9% (+27.8% in 2025)
• China's Shanghai Composite: +0.1% (+18.4% in 2025)
• India's Sensex: +0.6% (+9.1% in 2025)
• South Korea's Kospi: CLOSED (+75.6% in 2025)
• Australia's ASX All Ordinaries: UNCH (+7.1% in 2025)

Equity markets in Germany, Italy, and Switzerland are closed for New Year's Eve while markets in Spain, France, and the U.K. are headed for an early close. This has resulted in a quiet session for the markets that are still open. France's CAC (-0.5%) lags with Stellantis leading to the downside.

• In economic data:
  • Swiss November Official Reserve Assets CHF852.4 bln (last CHF844.9 bln)

---Equity Markets---

• STOXX Europe 600: +0.4% (+16.7% in 2025)
• Germany's DAX: CLOSED (+23.0% in 2025)
• U.K.'s FTSE 100: -0.1% (+21.5% in 2025)
• France's CAC 40: -0.2% (+10.4% in 2025)
• Italy's FTSE MIB: CLOSED (+31.5% in 2025)
• Spain's IBEX 35: -0.2% (+49.4% in 2025)