Stock Market Update

The S&P 500 futures trade 73 points above fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japanese debt advanced for the second consecutive day after last week's fall to record lows in longer tenors. The advance was assisted by a report that Japan's Ministry of Finance will reduce its issuance of ultra-long bonds. Two big Japanese insurers said that they are not concerned about unrealized bond losses. Moody's reaffirmed China's A1 rating with a Negative outlook.

• In economic data:
  • Japan's April Corporate Services Price Index 3.1% yr/yr (expected 3.0%; last 3.3%). March BoJ Core CPI 2.4% yr/yr (expected 2.3%; last 2.2%)
  • China's April Industrial Profit 1.4% YTD (last 0.8%)
  • South Korea's May Consumer Confidence 101.8 (last 93.8)

---Equity Markets---

• Japan's Nikkei: +0.5%
• Hong Kong's Hang Seng: +0.4%
• China's Shanghai Composite: -0.2%
• India's Sensex: -0.8%
• South Korea's Kospi: -0.3%
• Australia's ASX All Ordinaries: +0.5%

Major European indices trade mostly higher amid a Bloomberg report that the EU will focus on critical sectors in negotiations with the U.S. to avoid tariffs. In addition, President Trump said that he will delay the implementation of extra tariffs on imports from the EU until July 9. FT reported that the British government is shifting its focus toward issuing shorter-term debt. European Central Bank President Lagarde said that the strong euro will counter some of the tariff impact.

• In economic data:
  • Eurozone's May Business and Consumer Survey 94.8 (expected 94.0; last 93.8)
  • Germany's April GfK Consumer Climate -19.9, as expected (last -20.8)
  • U.K.'s May CBI Distributive Trades Survey -27 (expected -18; last -8)
  • France's flash May CPI -0.1% m/m (expected 0.1%; last 0.6%); 0.7% yr/yr (expected 0.9%; last 0.8%)
  • Swiss April trade surplus CHF6.358 bln (expected surplus of CHF5.550 bln; last surplus of CHF6.290 bln)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.7% 
• U.K.'s FTSE 100: +0.6%
• France's CAC 40: UNCH
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: -0.4%