Stock Market Update

The S&P 500 futures currently trade 35 points above fair value.

Equity indices in the Asia-Pacific region began the week on a mostly higher note. China's industrial profit turned positive for the year in August, though profits of state-owned enterprises are still expected to be down for the full year. Japan's LDP leadership election will take place on Saturday and there is still no clear frontrunner. China Securities Times reported that banks are facing increasingly challenging bond market conditions going into the end of the quarter, prompting some hedging activity.

• In economic data:
  • China's August Industrial Profit 0.9% YTD (last -1.7%)
  • Japan's July Leading Index 106.1 (expected 105.9; last 105.0) and Coincident Indicator -1.8% m/m (expected -2.6%; last 0.7%)
  • India's August Industrial Production 4.0% yr/yr (expected 5.0%; last 3.5%) and August Manufacturing Output 3.8% m/m (last 5.4%)

---Equity Markets---

• Japan's Nikkei: -0.7%
• Hong Kong's Hang Seng: +1.9%
• China's Shanghai Composite: +0.9%
• India's Sensex: -0.1%
• South Korea's Kospi: +1.3%
• Australia's ASX All Ordinaries: +0.8%

Major European indices trade in a mixed fashion. Spain saw its credit rating upgraded by Fitch, Moody's, and S&P over the weekend. Lufthansa plans to cut its administrative headcount by about 4,000 over the next four years. European Central Bank policymaker Makhlouf said that the central bank is near the bottom of its easing cycle while policymaker Cipollone spoke in favor of the digital euro.

• In economic data:
  • Eurozone's September Business and Consumer Survey 95.5 (expected 95.2; last 95.3)
  • U.K.'s August Mortgage Lending GBP4.31 bln (expected GBP4.80 bln; last GBP4.51 bln) and net Lending to Individuals GBP6.00 bln (expected GBP6.30 bln; last GBP6.14 bln)
  • Italy's August non-EU trade surplus EUR1.78 bln (last surplus of EUR5.99 bln)
  • Spain's September CPI -0.4% m/m (expected -0.2%; last 0.0%); 2.9% yr/yr (expected 3.1%; last 2.7%). September Core CPI 2.3% yr/yr (last 2.4%). August Retail Sales 4.5% yr/yr (last 4.7%)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +0.2%
• Italy's FTSE MIB: -0.2%
• Spain's IBEX 35: -0.1%