Stock Market Update

The S&P 500 futures currently trade 39 points above fair value.

Equity indices in the Asia-Pacific region began January on a higher note with South Korea's Kospi (+2.3%) rallying to a fresh record while markets in China, Japan, and New Zealand were closed for New Year's Day. South Korea's Manufacturing PMI (50.1) returned to a slight expansion in December. Baidu applied to list its AI chip unit in Hong Kong. Auto stocks listed in Hong Kong had a strong showing after bullish electric vehicle sales figures for December. Business leaders in Japan are reportedly hoping for a strong yen to offset the higher cost of imports.

• In economic data:
  • South Korea's December Manufacturing PMI 50.1 (last 49.4)
  • Singapore's Q4 GDP 1.9% qtr/qtr (last 2.4%); 5.7% yr/yr (last 4.3%). Q4 URA Property Index 0.7% qtr/qtr (last 0.9%)
  • Hong Kong's November Retail Sales 6.5% yr/yr (last 6.9%)
  • Australia's December Manufacturing PMI 51.6 (expected 52.2; last 51.6)
  • India's December Manufacturing PMI 55.0 (expected 55.7; last 56.6)

---Equity Markets---

• Japan's Nikkei: CLOSED
• Hong Kong's Hang Seng: +2.8% 
• China's Shanghai Composite: CLOSED 
• India's Sensex: +0.7%
• South Korea's Kospi: +2.3% 
• Australia's ASX All Ordinaries: +0.2%

Major European indices trade in the green with technology stocks and defense names among the leaders. Chip equipment supplier ASML is among the outperformers, nearing its record high from mid-2024. Final December Manufacturing PMI readings from the region were generally disappointing with the eurozone's reading (48.8) showing a deepening contraction relative to November (49.6).

• In economic data:
  • Eurozone's December Manufacturing PMI 48.8 (expected 49.2; last 49.6). November M3 Money Supply 3.0% yr/yr (expected 2.7%; last 2.8%), November Private Sector Loans 2.9% yr/yr (expected 2.8%; last 2.8%), and November Loans to nonfinancials 3.1% yr/yr (last 2.9%)
  • Germany's December Manufacturing PMI 47.0 (expected 47.7; last 48.2)
  • U.K.'s December Manufacturing PMI 50.6 (expected 51.2; last 51.2). Nationwide HPI -0.4% m/m (expected 0.1%; last 0.3%); 0.6% yr/yr (expected 1.2%; last 1.8%)
  • France's December Manufacturing PMI 50.7 (expected 50.6; last 47.8)
  • Italy's December Manufacturing PMI 47.9 (expected 50.0; last 50.6)
  • Spain's December Manufacturing PMI 49.6 (expected 51.2; last 51.5)

---Equity Markets---

• STOXX Europe 600: +0.6% 
• Germany's DAX: +0.4%
• U.K.'s FTSE 100: +0.6%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +0.9% 
• Spain's IBEX 35: +1.0%