Stock Market Update

The S&P 500 futures currently trade 13 points below fair value. 

Equity indices in the Asia-Pacific region had a mixed showing to end the week with South Korea's Kospi (+2.3%) reaching another new record while Hong Kong's Hang Seng (-1.1%) retreated after returning from this week's holiday closure. Japan's CPI decelerated in January with Core CPI increasing at its slowest pace in two years. However, flash Manufacturing PMI for February (52.8) showed accelerating activity. Indonesia finalized its trade agreement with the U.S. Bank Indonesia held its policy rate at 4.75% while Bangko Sentral ng Pilipinas cut its rate by 25 basis points to 4.25%.

• In economic data:
  • Japan's January National CPI -0.2% m/m (last -0.2%); 1.5% yr/yr (last 2.1%). National Core CPI 2.0% yr/yr, as expected (last 2.4%). Flash February Manufacturing PMI 52.8 (expected 51.3; last 51.5) and flash Services PMI 53.8 (last 53.7)
  • Hong Kong's January Unemployment Rate 3.9% (last 3.8%)
  • Australia's flash February Manufacturing PMI 51.5 (last 52.3) and flash Services PMI 52.2 (last 52.3)
  • New Zealand's January trade deficit NZD519 mln (expected deficit of NZD745 mln; last deficit of NZD88 mln)
  • India's flash February Manufacturing PMI 57.5 (last 55.4) and flash Services PMI 58.4 (last 58.5)

---Equity Markets---

• Japan's Nikkei: -1.1% 
• Hong Kong's Hang Seng: -1.1%
• China's Shanghai Composite: CLOSED 
• India's Sensex: +0.4%
• South Korea's Kospi: +2.3%
• Australia's ASX All Ordinaries: -0.1%

Major European indices are seeking a modestly higher finish to the week. Flash February Manufacturing and Services PMI readings from the region's major economies remained unimpressive for another month while readings from the U.K. outperformed. The U.K. also reported strong retail sales growth for January. European Central Bank President Lagarde repeated that she intends to serve through 2027 amid reports that she is looking to leave her post to get involved in shaping the next presidential election in France.

• In economic data:
  • Eurozone's flash February Manufacturing PMI 50.8 (expected 49.9; last 49.5) and flash Services PMI 51.8 (expected 51.9; last 51.6)
  • Germany's January PPI -0.6% m/m (expected 0.3%; last -0.2%); -3.0% yr/yr (expected -2.1%; last -2.5%). Flash February Manufacturing PMI 50.7 (expected 49.6; last 49.1) and flash Services PMI 53.4 (expected 52.4; last 52.4)
  • U.K.'s January Retail Sales 1.8% m/m (expected 0.2%; last 0.4%); 4.5% yr/yr (expected 2.8%; last 1.9%). January Core Retail Sales 2.0% m/m (expected 0.2%; last 0.3%); 5.5% yr/yr (expected 3.6%; last 2.5%). February flash Manufacturing PMI 52.0 (expected 51.5; last 51.8) and flash Services PMI 53.9 (expected 53.5; last 54.0)
  • France's flash February Manufacturing PMI 49.9 (expected 50.9; last 51.2) and flash Services PMI 49.6 (expected 49.1; last 48.4)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +1.1%
• Spain's IBEX 35: +0.4%