Stock Market Update

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

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note with Japan's Nikkei (+3.1%) and South Korea's Kospi (+1.5%) hitting fresh records. Japan's Prime Minister Takaichi confirmed plans for a snap election in February aimed at boosting her party's standing in parliament. There was also some speculation that continued yen weakness could prompt the Bank of Japan to announce its next rate hike sooner than previously planned. SK Hynix is planning additional investments in its chip packaging plants in South Korea.

• In economic data:
  • Japan's November Current Account surplus JPY3.14 trln (expected surplus of JPY3.04 trln; last surplus of JPY2.48 trln). December Economy Watchers Current Index 48.6 (expected 48.7; last 48.7)
  • Australia's January Westpac Consumer Sentiment -1.7% (last -9.0%)
  • New Zealand's Q4 NZIER Business Confidence 48% (last 18%)

---Equity Markets---

• Japan's Nikkei: +3.1%
• Hong Kong's Hang Seng: +0.9%
• China's Shanghai Composite: -0.6%
• India's Sensex: -0.3%
• South Korea's Kospi: +1.5%
• Australia's ASX All Ordinaries: +0.5%

Major European indices trade in the red with France's CAC (-0.4%) showing relative weakness amid growing concerns about the country's political dysfunction. French Prime Minister Lecornu is reportedly considering forcing through a 2026 budget without a vote. British homebuilder Persimmon reported strong results for Q4 while hotel operator Whitbread also delivered good results.

• In economic data:
  • France's November government budget deficit EUR155.4 bln (last deficit of EUR136.2 bln)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: -0.2%
• France's CAC 40: -0.3%
• Italy's FTSE MIB: -0.2%
• Spain's IBEX 35: +0.1%