Stock Market Update

The S&P 500 futures trade just below fair value.

Equity indices in the Asia-Pacific region ended the midweek session on a higher note with South Korea's Kospi (+2.7%) leading the way after the opposition candidate, who was seen as a front-runner, won the country's presidential election. Australia's Q1 GDP underwhelmed, but Treasurer Chalmers said that even weak growth is welcome at a time when global risks are elevated. China Securities Journal reported that the People's Bank of China is fine-tuning liquidity levels to meet mid-year needs. Nikkei reported that Japan is forming a think tank in response to President Trump's tariff agenda.

• In economic data:
  • Japan's May Services PMI 51.0 (expected 50.8; last 52.4)
  • South Korea's May CPI -0.1% m/m (expected 0.1%; last 0.1%); 1.9% yr/yr (expected 2.1%; last 2.1%)
  • India's May Services PMI 58.8 (expected 61.2; last 58.7)
  • Hong Kong's May Manufacturing PMI 49.0 (last 48.3)
  • Australia's Q1 GDP 0.2% qtr/qtr (expected 0.4%; last 0.6%); 1.3% yr/yr (expected 1.5%; last 1.3%). May Services PMI 50.6 (expected 50.5; last 51.0). May AIG Construction Index -6.4 (last -7.9) and AIG Manufacturing Index -23.5 (last -26.5)

---Equity Markets---

• Japan's Nikkei: +0.8%
• Hong Kong's Hang Seng: +0.6%
• China's Shanghai Composite: +0.4%
• India's Sensex: +0.3%
• South Korea's Kospi: +2.7%
• Australia's ASX All Ordinaries: +0.9%

Major European indices trade on a mostly higher note. President Trump's doubled tariffs on steel imports officially take effect today, though the UK has been spared an immediate hit due to the recent US-UK Economic Prosperity Deal. Airbus has been boosted by speculation that China is preparing a big aircraft order. Germany's government approved a EUR46 bln corporate tax relief plan.

• In economic data:
  • Eurozone's May Services PMI 49.7 (expected 48.9; last 50.1)
  • Germany's May Services PMI 47.1 (expected 47.2; last 49.0)
  • U.K.'s May Services PMI 50.9 (expected 50.2; last 49.0)
  • France's May Services PMI 48.9 (expected 47.4; last 47.3)
  • Italy's May Services PMI 53.2 (expected 52.1; last 52.9)
  • Spain's May Services PMI 51.3 (expected 52.8; last 53.4) and April Industrial Production 0.6% yr/yr (last 0.9%)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.5%
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +0.5%
• Italy's FTSE MIB: -0.3%
• Spain's IBEX 35: -0.3%