Stock Market Update

The S&P 500 futures currently trade 25 points above fair value. 

It was a sea of green across Asia, as all the region's major markets advanced with Japan's Nikkei (+2.2%) and South Korea's Kospi (+1.9%) reaching fresh records. China's Ministry of Commerce threated to impose countermeasures after the new global tariff took effect. In addition, China's Foreign Ministry has not confirmed President Trump's visit, which is expected at the end of March/start of April. Australia's CPI was a touch hotter than expected in January (3.8%; expected 3.7%), prompting speculation about three rate hikes from the Reserve Bank of Australia before the end of the year.

• In economic data:
  • Japan's January Corporate Services Price Index 2.6% yr/yr, as expected (last 2.6%). December BoJ Core CPI 1.7% yr/yr (expected 1.8%; last 1.9%)
  • Hong Kong's Q4 GDP 1.0% qtr/qtr, as expected (last 0.9%); 3.8% yr/yr, as expected (last 3.7%). January CPI 0.2% m/m (last 0.3%); 1.1% yr/yr (expected 1.2%; last 1.4%)
  • Australia's January CPI 3.8% yr/yr (expected 3.7%; last 3.8%) and Q4 Construction Work Done -0.1% qtr/qtr (expected 1.2%; last 0.1%)

---Equity Markets---

• Japan's Nikkei: +2.2%
• Hong Kong's Hang Seng: +0.7%
• China's Shanghai Composite: +0.7%
• India's Sensex: +0.1%
• South Korea's Kospi: +1.9%
• Australia's ASX All Ordinaries: +1.2%

Major European indices trade in the green with U.K.'s FTSE (+0.9%), France's CAC (+0.5%), and Italy's MIB (+1.0%) reaching fresh records with cyclical names leading the way. HSBC reported strong results while distilling giant Diageo lowered its outlook and cut its dividend. German Chancellor Merz called for deeper economic ties with China during his visit to Beijing.

• In economic data:
  • Eurozone's January CPI -0.6% m/m (expected -0.5%; last 0.2%); 1.7% yr/yr, as expected (last 1.9%). January Core CPI 2.2% yr/yr, as expected (last 2.3%)
  • Germany's Q4 GDP 0.3% qtr/qtr, as expected (last 0.0%); 0.4% yr/yr, as expected (last 0.3%). March GfK Consumer Climate -24.7 (expected -23.0; last -24.2)
  • France's February Consumer Confidence 91 (expected 90; last 90)
  • Spain's January PPI -2.9% yr/yr (last -3.0%)
  • Swiss February ZEW Expectations 9.8 (last -4.7)

---Equity Markets---

• STOXX Europe 600: +0.5%
• Germany's DAX: +0.3%
• U.K.'s FTSE 100: +0.9%
• France's CAC 40: +0.5%
• Italy's FTSE MIB: +1.0%
• Spain's IBEX 35: +0.8%