Stock Market Update

The S&P 500 futures trade 23 points, or 0.6%, below fair value.

Equity indices in the Asia-Pacific region ended Thursday on a lower note. The Bank of Japan's summary of opinions for April noted that reaching the 2.0% CPI target will be difficult since the current inflation is driven by temporary factors. A People's Bank of China vice governor said that support for the real economy will be increased. South Korea will reportedly eliminate capital gains taxes for most shareholders. POSCO will invest KRW25 trln in its battery business over the next eight years.

• In economic data:
  • Japan's March Current Account surplus JPY2.549 trln (expected surplus of JPY1.752 trln; last surplus of JPY1.648 trln). April Bank Lending 0.9% yr/yr (last 0.5%) April Economy Watchers Current Index 50.4 (last 47.8)
  • Australia's March Building Permits -18.5% m/m, as expected (last 42.0%) and Private House Approvals -3.0% m/m (last 14.6%)
  • New Zealand's April FPI 0.1% m/m (last 0.7%). Q2 Inflation Expectations 3.3% (last 3.3%)

---Equity Markets---

• Japan's Nikkei: -1.8%
• Hong Kong's Hang Seng: -2.2%
• China's Shanghai Composite: -0.1%
• India's Sensex: -2.1%
• South Korea's Kospi: -1.6%
• Australia's ASX All Ordinaries: -1.9%

Major European indices trade sharply lower across the board. The U.K. is reportedly looking to scrap the Northern Ireland protocol due to a continued post-Brexit disagreement with the EU. Bank of England policymaker Ramsden said that he expects more rate hikes due to inflation risk and that the central bank's forecasts are not trying to guide the economy lower. Finland's leaders are preparing to apply for NATO membership.

• In economic data:
  • U.K.'s Q1 GDP 0.8% qtr/qtr (expected 1.0%; last 1.3%); 8.7% yr/yr (expected 9.0%; last 6.6%). Q1 Business Investment -0.5% qtr/qtr (expected 1.8%; last 1.0%); 8.5% yr/yr (last 1.0%). March Industrial Production -0.2% m/m (expected 0.1%; last -0.3%); 0.7% yr/yr (expected 0.5%; last 2.1%). March Manufacturing Production -0.2% m/m (expected -0.5%; last -0.6%); 1.9% yr/yr (expected 2.3%; last 3.5%). March trade deficit GBP23.90 bln (expected deficit of GBP18.50 bln; last deficit of GBP21.61 bln)
  • Swiss April PPI 1.3% m/m (last 0.8%); 6.7% yr/yr (last 6.1%)

---Equity Markets---

• STOXX Europe 600: -2.1%
• Germany's DAX: -2.2%
• U.K.'s FTSE 100: -2.0%
• France's CAC 40: -1.7%
• Italy's FTSE MIB: -1.7%
• Spain's IBEX 35: -1.8%