[BRIEFING.COM] S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -35.00.
The S&P 500 futures are trading five points, or 0.2%, below fair value.
Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japanese officials are reportedly considering imposing tariffs on $400 million worth of goods exported from the United States. Bank of Korea Governor Lee Ju-yeol said it is hard to be optimistic about the Korean economy due to weak job growth. Fitch commented on China, noting that bond refinancing risk for Chinese companies is on the rise. The Hong Kong Monetary Authority intervened once again to defend the Hong Kong dollar's peg to the U.S. dollar. The HKMA has spent nearly HKD10 billion in defense of the currency.
- In economic data:
- Japan's March Core Machinery Orders -3.9% month-over-month (expected -2.7%; last 2.1%); -2.4% year-over-year (expected 0.3%; last 2.4%). Weekly foreign investment in Japanese stocks JPY126.30 billion (last -JPY800 million)
- China's April FDI +0.1% (last 0.5%)
- Australia's April Employment Change 22,600 (expected 20,300; last -700) and Full Employment Change 32,700 (last -25,100). April Participation Rate 65.6% (expected 65.5%; last 65.5%) and April Unemployment Rate 5.6% (expected 5.5%; last 5.5%)
- Hong Kong's April Unemployment Rate 2.8% (last 2.9%)
- Japan's Nikkei gained 0.5%. Daiichi Sankyo, Mitsui Mining and Smelting, Ebara, Pacific Metals, Eisai, Dentsu, Yokohama Rubber, Trend Micro, SUMCO, Sony, Konica Minolta, and Konami rose between 1.5% and 5.3%.
- Hong Kong's Hang Seng lost 0.5% amid broad weakness. Property names and financials were among the laggards with Sino Land, Wharf Real Estate, Swire Pacific, China Resources Land, China Overseas, China Construction Bank, SHK Properties, and Henderson Land surrendered between 1.2% and 2.7%.
- China's Shanghai Composite ended lower by 0.5%. Guizhou Guihang Automotive Components, Sichuan Swellfun, Datang Telecom Technology, Chongqing Department Store, and Shanghai Diesel Engine posted losses between 4.3% and 10.0%.
- India's Sensex gave up 0.7%. ITC lost 2.4% while financials like AXIS Bank, Yes Bank, IndusInd Bank, Kotak Mahindra Bank, and ICICI Bank fell between 0.7% and 2.1%. Coal India outperformed, rising 2.5%.
Major European indices trade modestly higher. The Eurozone reportedly wants to revisit the idea of "Eurobonds", which would equate to bundling riskier sovereign bonds with less risky ones in order to theoretically reduce the overall risk profile of a given bond. Reports out of the UK indicate Britain is likely to remain in the customs union past 2021.
- In economic data:
- Italy's March trade surplus EUR4.53 billion (expected surplus of EUR3.74 billion; last surplus of EUR3.10 billion). EU trade surplus EUR700 million (last EUR1.12 billion)
- France's CAC is higher by 0.5%. Growth-sensitive names are among the leaders with TechnipFMC rising 2.4% while Renault, Solvay, Valeo, Peugeot, and Total hold gains between 1.1% and 2.0%. Financials AXA and Credit Agricole are both up near 0.8% while Societe Generale and BNP Paribas are both down near 0.5%.
- UK's FTSE is up 0.2%. Consumer names like Burberry, Next, Marks & Spencer, Dixons Carphone, and Associated British Foods sport gains between 1.1% and 3.3%.
- Germany's DAX trades up 0.3%. Merck leads with a gain of 5.1% while BMW, Daimler, Volkswagen, and Adidas are up between 0.3% and 0.9%. Deutsche Bank is higher by 0.1% while Commerzbank is down 0.7%.