Stock Market Update

The S&P 500 futures currently trade 55 points below fair value.

Equity indices in the Asia-Pacific ended the week on a mostly higher note while South Korea's Kospi (-1.0%) hit a fresh record high before reversing. The People's Bank of China will scrap the 20% reserve requirement ratio for forward foreign exchange sales on Monday. Japan's Tokyo Core CPI decelerated to 1.8% in February from 2.0%. On that note, Economy Minister Kiuchi said that signs of inflation are slowing and that real wages should turn positive soon. China's National People's Congress will start on Thursday with press reports suggesting that the party will seek to promote social welfare and sustainability over growth at all costs.

• In economic data:
  • Japan's February Tokyo CPI 1.6% yr/yr (last 1.5%) and Tokyo Core CPI 1.8% yr/yr (expected 1.7%; last 2.0%). January Industrial Production 2.2% m/m (expected 5.5%; last -0.1%), January Retail Sales 1.8% yr/yr (expected 0.1%: last -0.9%), January Construction Orders 5.7% yr/yr (last 20.2%) and January Housing Starts -0.4% yr/yr (expected -1.9%; last -1.3%)
  • Hong Kong's January trade deficit HKD14.1 bln (last deficit of HKD63.3 bln). January Imports 38.1% m/m (last 30.6%) and Exports 33.8% m/m (last 26.1%)
  • Australia's January Private Sector Credit 0.5% m/m (expected 0.7%; last 0.8%) and Housing Credit 0.6% m/m (last 0.7%)
  • India's Q3 GDP 7.8% yr/yr (expected 7.2%; last 8.2%)

---Equity Markets---

• Japan's Nikkei: +0.2% 
• Hong Kong's Hang Seng: +1.0% 
• China's Shanghai Composite: +0.4%
• India's Sensex: -1.2% 
• South Korea's Kospi: -1.0% 
• Australia's ASX All Ordinaries: +0.3%

Major European indices trade mostly lower. U.K.'s Labour party came in third place in a regional by-election, serving as a reminder of weak support for the ruling party and Prime Minister Starmer. Airline operator IAG reported strong results for Q4 while BASF achieved a profit thanks to cost savings. Germany's flash CPI for February will be released at 8:00 ET and is expected to show a slight deceleration in yr/yr CPI to 2.0% from 2.1% in January.

• In economic data:
  • Germany's January Import Prices Index 1.1% m/m (expected 0.6%; last -0.1%); -2.3% yr/yr (last -2.3%)
  • France's Q4 GDP 0.2% qtr/qtr, as expected (last 0.2%); 1.1% yr/yr, as expected (last 0.9%). Q4 Nonfarm Payrolls -0.1% qtr/qtr, as expected (last -0.1%). January Consumer Spending 0.5% m/m (expected 0.4%; last -0.5%). February CPI 0.7% m/m (expected 0.5%; last -0.3%); 1.0% yr/yr (expected 0.8%; last 0.3%). February PPI 0.5% m/m (last 0.3%). January Jobseeker total 3.09 mln (last 3.117 mln). o Spain's February CPI 0.4% m/m (last -0.4%); 2.3% yr/yr (expected 2.2%; last 2.3%). December Current Account surplus EUR1.80 bln (last surplus of EUR210 mln)
  • Swiss Q4 GDP 0.1% qtr/qtr (expected 0.2%; last -0.4%); 0.7% yr/yr (last 0.6%). February KOF Leading Indicators 104.2 (expected 103.0; last 103.3)

---Equity Markets---

• STOXX Europe 600: unch
• Germany's DAX: -0.2%
• U.K.'s FTSE 100: +0.3% 
• France's CAC 40: -0.5% 
• Italy's FTSE MIB: -0.4%
• Spain's IBEX 35: -0.6%