Stock Market Update

The S&P 500 futures trade 15 points below fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. The People's Bank of China reduced its one-year (3.00%) and five-year (3.50%) loan prime rates by ten basis points each, which the market had expected. India is reportedly discussing a three-tranche structure for a trade deal with the U.S. while Japanese officials will meet with their U.S. counterparts on Friday. Japan had a weak 20-yr bond auction, which helped send yields on longer tenors to fresh multi-year highs. The Reserve Bank of Australia lowered its cash rate by 25 basis points to 3.85%, as expected.

• In economic data:
  • Hong Kong's April Unemployment Rate 3.4% (last 3.2%)

---Equity Markets---

• Japan's Nikkei: +0.1%
• Hong Kong's Hang Seng: +1.5%
• China's Shanghai Composite: +0.4%
• India's Sensex: -1.1%
• South Korea's Kospi: -0.1%
• Australia's ASX All Ordinaries: +0.6%

Major European indices trade in the green. Germany's producer prices saw a larger-than-expected drop in April, contributing to expectations for more easing from the European Central Bank. British Prime Minister Starmer touted a freshly-signed trade deal with the EU. Bank of England Chief Economist Pill said that cutting rates by 25 basis points per quarter is too rapid due to a stubborn inflation outlook.

• In economic data:
  • Eurozone's March Current Account surplus EUR50.9 bln (expected surplus of EUR35.9 bln; last surplus of EUR34.3 bln). March Construction Output 0.1% m/m (last -1.16%)
  • Germany's April PPI -0.6% m/m (expected -0.3%; last -0.7%); -0.9% yr/yr (expected -0.6%; last -0.2%)

---Equity Markets---

• STOXX Europe 600: +0.7%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: +0.7%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +0.7%
• Spain's IBEX 35: +1.6%