Stock Market Update

The S&P 500 futures currently 26 trade points above fair value. 

Equity indices in the Asia-Pacific region had a mixed showing on Thursday with South Korea's Kospi (+3.1%) settling at a fresh record high while Japan's Nikkei (-0.02%) touched a fresh record before ending little changed. Longer-dated JGBs outperformed, sending yields on 20-, 30-, and 40-yr bonds to levels seen in early January. Reserve Bank of Australia Governor Bullock defended the RBA's recent rate hike in a parliamentary testimony. There was growing speculation that the Bank of Korea will launch a quantitative easing program.

• In economic data:
  • Japan's January PPI 0.2% m/m, as expected (last 0.1%); 2.3% yr/yr, as expected (last 2.4%)
  • India's January CPI 2.75% (expected 2.40%; last 1.33%)
  • Australia's February MI Inflation Gauge 5.0% (last 4.6%)

---Equity Markets---

• Japan's Nikkei: UNCH
• Hong Kong's Hang Seng: -0.9%
• China's Shanghai Composite: +0.1%
• India's Sensex: -0.7%
• South Korea's Kospi: +3.1%
• Australia's ASX All Ordinaries: UNCH

Major European indices trade on a mostly higher note. The U.K.'s GDP report for Q4 was a touch light relative to expectations due to weak industrial production in December. Siemens reported strong results and outlook while Mercedes-Benz reported pressure on margins and cautious guidance. Hermes reported strong revenue growth for Q4. French President Macron urged EU leaders to come up with a plan to improve competitiveness by the summer.

• In economic data:
  • U.K.'s Q4 GDP 0.1% qtr/qtr (expected 0.2%; last 0.1%); 1.0% yr/yr (expected 1.2%; last 1.2%). December Industrial Production -0.9% m/m (expected -0.1%; last 1.3%); 0.5% yr/yr (expected 1.5%; last 2.3%). December Manufacturing Production -0.5% m/m (expected -0.2%; last 1.9%); 0.5% yr/yr (expected 1.8%; last 1.3%). December Construction Output -0.5% m/m (expected 0.5%; last -0.8%); -0.3% yr/yr (expected 0.0%; last -0.3%). Q4 Business Investment -2.7% qtr/qtr (expected 0.4%; last 1.6%); 2.0% yr/yr (last 2.5%). December trade deficit GBP22.72 bln (expected deficit of GBP22.30 bln; last deficit of GBP23.58 bln)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +1.4%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: +0.9%
• Italy's FTSE MIB: +0.5%
• Spain's IBEX 35: -0.1%