Stock Market Update

The S&P 500 futures currently trade 32 points below fair value.

Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Rate cut expectations are firming in Japan with former Bank of Japan policymaker Sakurai now saying that he sees a potential for an increase in October. Some South Korean officials are hesitant to commit to the investment deal with the U.S. unless safeguards like currency swaps are put into place. Japan is planning to reduce its issuance of longer-dated JGBs. China's Ministry of Commerce aims to increase digital consumption.

• In economic data:
  • Japan's August Corporate Services Price Index 2.7% yr/yr (expected 2.9%; last 2.6%)
  • Hong Kong's August trade deficit $25.4 bln (last deficit of $34.1 bln). August Imports 11.5% m/m (last 16.5%) and Exports 14.5% m/m (last 14.3%)

---Equity Markets---

• Japan's Nikkei: +0.3%
• Hong Kong's Hang Seng: -0.1%
• China's Shanghai Composite: UNCH
• India's Sensex: -0.7% 
• South Korea's Kospi: UNCH
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade in the red. H&M's quarterly report showed a strong improvement in margins in Q3, though the outlook for Q4 was somewhat cautious. Bank of England policymaker Greene spoke in favor of a cautious approach to rate cuts due to current uncertainty and risks. European Central Bank policymaker Kazimir said that the ECB's inflation target has been met. The Swiss National Bank left its policy rate at 0.00%, as expected.

• In economic data:
  • Eurozone's August M3 Money Supply 2.9% yr/yr (expected 3.3%; last 3.4%), August Private Sector Loans 2.5% yr/yr (expected 2.3%; last 2.4%), and August loans to nonfinancials 3.0% yr/yr (last 2.8%)
  • Germany's October GfK Consumer Climate -22.3 (expected -23.3; last -23.5)
  • U.K.'s September CBI Distributive Trades Survey -29 (expected -31; last -32)
  • France's September Consumer Confidence 87, as expected (last 87)

---Equity Markets---

• STOXX Europe 600: -0.8%
• Germany's DAX: -1.2%
• U.K.'s FTSE 100: -0.5%
• France's CAC 40: -0.7%
• Italy's FTSE MIB: -0.6%
• Spain's IBEX 35: -0.4%