Stock Market Update

The S&P 500 futures trade 50 points above fair value.

Equity indices in the Asia-Pacific region finished mostly higher on Monday, supported by falling oil prices, lower bond yields, and Treasury Secretary Bessent's description of his meeting with China's foreign minister, He Lifeng, as being "successful." That conversation reportedly included proposals for handling AI incidents as well as efforts to improve trade negotiations. President Trump and President Xi will be meeting Thursday in Washington, D.C. The People's Bank of China kept its one-year and 5-year loan prime rates unchanged at 3.00% and 3.50%, respectively, for the 16th straight month; meanwhile, there was speculation that the Reserve Bank of Australia could boost its policy rate later this month, as well as in November. Japan was closed for Respect for the Aged Day and will remain closed for other holidays through September 23.

• In economic data:
  • South Korea September exports 1-20 days 78.3% yr/yr (prior 56.0%) and imports 26.7% yr/yr (prior 19.0%)

---Equity Markets---

• Japan's Nikkei: closed for holiday
• Hong Kong's Hang Seng: +1.2%
• China's Shanghai Composite: +1.0%
• India's Sensex: +0.8%
• South Korea's Kospi: +1.7%
• Australia's All Ordinaries: flat

Major European indices are rallying to start the week, bolstered by a welcome drop in oil prices and lower bond yields in response to that move. Brent crude futures are down 2.7% to $101.07/bbl following reports of better-than-expected exports out of Saudi Arabia and the potential for diplomatic progress between the U.S. and Iran. Separately, the U.S., Denmark, and Greenland have worked out an agreement whereby the U.S. can develop a significant military presence in Greenland and block others from doing the same. 

• In economic data:
  • U.K.'s September Rightmove House Price Index 0.7% m/m (prior -2.0%) and -0.8% yr/yr (prior -1.0%)

---Equity Markets---

• STOXX Europe 600: +1.2%
• Germany's DAX: +1.2%
• U.K.'s FTSE 100: +1.0%
• France's CAC 40: +1.0%
• Italy's FTSE MIB: +1.1%
• Spain's IBEX 35: +1.2%