Stock Market Update

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

Equity indices in the Asia-Pacific region had a mostly lower showing on Monday with South Korea's Kospi (-0.8%) reversing after reaching a fresh record while markets in Australia and India were closed for holidays. The Japanese yen has extended its Friday rally against the dollar after it was reported that the New York Fed conducted rate checks with banks, suggesting that an intervention is taking shape. Furthermore, Japan's Prime Minister Takaichi hinted at an intervention during a televised debate on Sunday. China's President Xi removed one of PLA's top generals. India is planning to sign a trade deal with the EU tomorrow.

• In economic data:
  • Japan's November Leading Index 109.9 (expected 110.5; last 109.8) and Coincident Indicator -1.0% m/m (expected -0.7%; last -1.3%)
  • Singapore's December Industrial Production -13.3% m/m (expected -15.2%; last -7.8%); 8.3% yr/yr (expected 10.1%; last 18.2%)

---Equity Markets---

• Japan's Nikkei: -1.8% 
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: -0.1%
• India's Sensex: HOLIDAY
• South Korea's Kospi: -0.8%
• Australia's ASX All Ordinaries: HOLIDAY

Major European indices are mostly higher while regional sovereign debt is also on the rise. Embattled French Prime Minister Lecornu forced a spending bill for 2026 through parliament without a vote. France will preside over a call between G-7 finance ministers tomorrow. Ukraine's president said that a security agreement with the U.S. is ready.

• In economic data:
  • Germany's January ifo Business Climate Index 87.6 (expected 88.3; last 87.6). January Current Assessment 85.7 (last 85.6) and Business Expectations 89.5 (last 89.7)
  • Spain's December PPI -3.0% yr/yr (last -2.5%)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.4%