Stock Market Update

The S&P 500 futures currently trade poins below fair value.

Equity indices in the Asia-Pacific markets finished mixed on Wednesday, with investors cautious ahead of the Trump-Xi summit and technology shares coming under renewed pressure in Hong Kong. China's Shanghai Composite fell 0.4%, while the Shenzhen Component declined 0.6% after preliminary US-China talks failed to produce an agreement to extend the trade truce, keeping trade, AI, Taiwan, and other geopolitical issues in focus ahead of Thursday's meeting. Bank of China (-1.1%), CNOOC (-2.4%), CATL (-1.2%), Suzhou Dongshan Precision Manufacturing (-2.6%), and Weichai Power (-4.2%) led the mainland weakness. Hong Kong's Hang Seng Index dropped 1.0%, snapping a three-session winning streak, with Alibaba (-4.2%), Tencent (-2.4%), Xiaomi (-3.8%), MiniMax (-4.0%), and Z.AI (-12.4%) among the notable technology decliners. Brent crude falling below $100 provides some relief from recent inflation concerns, although it does little to offset the cautious tone surrounding US-China relations. Japan's Nikkei 225 was closed for the Autumnal Equinox holiday but will return to action on Thursday.

• In economic data:
  • South Korea's September Consumer Confidence 106.6 (prior 104.5)
  • Australia's September S&P Global Manufacturing PMI 49.3 (prior 52.0) and S&P Global Services PMI 51.4 (prior 53.2)
  • India's September HSBC Manufacturing PMI 55.7 (prior 52.8) and HSBC Services PMI 55.8 (prior 54.1)
  • Hong Kong's August CPI 0.1% m/m (prior 0.2%) and 1.7% yr/yr (prior 1.7%)

---Equity Markets---

• Japan's Nikkei: closed for holiday
• Hong Kong's Hang Seng: -1.0%
• China's Shanghai Composite: -0.4%
• India's Sensex: +0.4%
• South Korea's Kospi: +0.9%
• Australia's All Ordinaries: +0.1%

Major European indices trade mostly lower on Wednesday, with falling oil prices and signs of progress in US-Iran diplomacy providing some support while investors continue to monitor geopolitical risks. Separately, improved Composite PMI readings for September are driving speculation about another ECB rate hike in October. Germany's DAX 40 is down 0.8% despite stronger-than-expected services activity, with SAP, MTU Aero Engines, Siemens, and Rheinmetall gaining between 0.8% and 2.0%, while Daimler Truck, Scout24, Deutsche Telekom, and Infineon Technologies come under pressure. France's CAC 40 is down 0.1% after flash Composite PMI jumps to 51.2 in September from 48.5, returning to expansion territory, with LVMH (+1.3%), Safran (+1.1%), BNP Paribas (+1.0%), and EssilorLuxottica (+1.0%) exhibiting relative strength. London's FTSE 100 trades slightly lower, with JD Sports (+1.0%) advancing after maintaining guidance, while Diageo (-0.8%) slips after naming Joanne Wilson its next CFO. Brent crude oscillates amid diplomatic efforts to end the Middle East conflict and potentially reopen the Strait of Hormuz. Investors also monitor the Trump-Xi summit, with trade and broader US-China relations expected to feature in the talks.

• In economic data:
  • Eurozone's September HCOB Manufacturing PMI 52.7 (expected 52.6; prior 52.7) and Services PMI 53.0 (expected 51.4; prior 51.6); Composite PMI 53.1 (expected 51.7; prior 52.0)
  • Germany's September HCOB Manufacturing PMI 53.8 (expected 54.1; prior 54.3) and Services PMI 52.9 (expected 49.9; prior 49.7); Composite PMI 53.8 (expected 51.8; prior 51.8)
  • France's September HCOB Manufacturing PMI 50.3 (expected 50.9; prior 51.1) and Services PMI 51.4 (expected 48.3; prior 48.0); Composite PMI 51.2 (prior 48.5)
  • U.K.'s September S&P Global Manufacturing PMI 52.0 (expected 51.5; prior 51.7) and Services PMI 51.7 (expected 52.0; prior 52.5); Composite PMI 51.7 (expected 52.0; prior 52.5)

---Equity Markets---

• STOXX Europe 600: -0.3%
• Germany's DAX: -0.8%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: -0.4%