Stock Market Update

The S&P 500 futures currently trade 37 points above fair value. 

Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Lower House election will take place over the weekend with some speculating that the ruling coalition could win super majority. Reserve Bank of Australia Governor Bullock said that while inflation has fallen substantially, it will not return to target until mid-2027. The Reserve Bank of India left its policy rate at 5.25%, as expected.

• In economic data:
  • Japan's December Household Spending -2.9% m/m (expected -1.3%; last 6.2%); -2.6% yr/yr (expected -0.5%; last 2.9%). December Leading Index 110.2 (expected 109.8; last 109.9) and Coincident Indicator -0.4% m/m (last -1.0%)
  • South Korea's December Current Account surplus $18.70 bln (last surplus of $12.90 bln)

---Equity Markets---

• Japan's Nikkei: +0.8%
• Hong Kong's Hang Seng: -1.2%
• China's Shanghai Composite: -0.3% 
• India's Sensex: +0.3% 
• South Korea's Kospi: -1.4% 
• Australia's ASX All Ordinaries: -2.2%

Major European indices trade on a mostly higher note. Stellantis is down nearly 30% after recording a EUR22.2 bln writedown due to mounting losses from its electric vehicle strategy. The company also guided for a big loss in the second half of the year. Societe Generale announced job cut plans. A few European Central Bank policymakers repeated that policy is in a good place at this time.

• In economic data:
  • Germany's December trade surplus EUR17.1 bln (expected surplus of EUR14.1 bln; last surplus of EUR13.6 bln). December Imports 1.4% m/m (expected 0.2%: last 0.7%) and Exports 4.0% m/m (expected 1.0%; last -2.5%). December Industrial Production -1.9% m/m (expected -0.2%; last 0.2%); -0.6% yr/yr (last 0.4%)
  • U.K.'s January Halifax House Price Index 0.7% m/m (expected 0.1%; last -0.5%); 1.0% yr/yr (last 0.4%)
  • France's December trade deficit EUR4.8 bln (expected deficit of EUR3.8 bln; last deficit of EUR4.0 bln) and December Current Account deficit EUR600 mln (last deficit of EUR300 mln)
  • Spain's December Industrial Production -0.3% yr/yr (last 4.6%)
  • Swiss January Unemployment Rate 2.9% (expected 3.0%; last 3.0%)

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX: +0.7%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: UNCH
• Italy's FTSE MIB: -0.2%
• Spain's IBEX: +0.9%