Stock Market Update

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

Equity indices in the Asia-Pacific region ended the week on a lower note. There was growing speculation that President Trump will extend the current trade terms with China when he meets with President Xi in April. There were also reports that tariffs on metals and aluminum goods could be reduced. On a somewhat related note, officials from the U.S. and Taiwan formalized a trade deal. An adviser to Japan's Prime Minister Takaichi said that the Bank of Japan may forego a rate hike in March but is likely to raise rates later in the year.

• In economic data:
  • China's January New Loans CNY4.71 trln (expected CNY5.00 trln; last CNY910 bln), January Outstanding Loan Growth 6.1% yr/yr (expected 6.2%; last 6.4%), and January total social financing CNY7.22 trln (expected CNY7.05 trln; last CNY2.21 trln). January House Prices -3.1% yr/yr (last -2.7%)
  • South Korea's January Import Price Index -1.2% yr/yr (last 0.5%) and Export Price Index 7.8% yr/yr (last 5.0%)
  • New Zealand's January Business PMI 55.2 (last 56.1). December External Migration & Visitors 7.0% yr/yr (last 8.2%). Q1 Inflation Expectations 2.4% (last 2.3%)

---Equity Markets---

• Japan's Nikkei: -1.2%
• Hong Kong's Hang Seng: -1.7%
• China's Shanghai Composite: -1.3%
• India's Sensex: -1.3% 
• South Korea's Kospi: -0.3%
• Australia's ASX All Ordinaries: -1.5%

Major European indices trade on a mostly lower note. Military contractor Safran reported in-line results while L'Oreal missed growth expectations. European Central Bank policymaker Kazaks said that the ECB is in a good position regarding rates while policymaker Nagel said that geopolitical "rivalries" could result in higher inflation.

• In economic data:
  • Eurozone's Q4 GDP 0.3% qtr/qtr, as expected (last 0.3%); 1.3% yr/yr, as expected (last 1.4%). Q4 Employment Change 0.2% qtr/qtr (expected 0.1%; last 0.2%); 0.7% yr/yr (expected 0.6%; last 0.6%). December trade surplus EUR12.6 bln (expected EUR11.8 bln; last EUR9.3 bln)
  • Germany's January WPI 0.9% m/m (expected 0.1%; last -0.2%); 1.2% yr/yr (last 1.2%)
  • Spain's January CPI -0.4% m/m, as expected (last 0.3%); 2.3% yr/yr (expected 2.4%; last 2.9%). January Core CPI 2.6% yr/yr, as expected (last 2.6%)
  • Swiss January CPI -0.1% m/m (expected 0.0%; last 0.0%); 0.1% yr/yr, as expected (last 0.1%)

---Equity Markets---

• STOXX Europe 600: -0.2% 
• Germany's DAX: +0.3%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: -0.3% 
• Italy's FTSE MIB: -1.5%
• Spain's IBEX 35: -1.1%