Stock Market Update

The S&P 500 futures currently trade 42 points below fair value. 

Equity indices in the Asia-Pacific region ended Thursday on a lower note with rising oil prices and reports of attacks on oil tankers in the Middle East weighing on sentiment again. U.S. Trade Representative Greer said that a section 301 investigation into 16 trading partners has started. The investigation is expected to lead to a replacement of IEEPA tariffs. Japan will release 80 million barrels from state and private reserves and Prime Minister Takaichi said that there is no need for an extra budget to offset higher gasoline prices.

• In economic data:
  • Japan's Q1 BSI Large Manufacturing Conditions 3.8 (expected 5.3; last 4.7)
  • Australia's May MI Inflation Expectations 5.2% (last 5.0%)
  • New Zealand's Q4 Manufacturing Sales Volume -0.5% qtr/qtr (last 1.1%)
  • India's February CPI 3.21% yr/yr (expected 3.10%; last 2.75%)

---Equity Markets---

• Japan's Nikkei: -1.0%
• Hong Kong's Hang Seng: -0.7%
• China's Shanghai Composite: -0.1%
• India's Sensex: -1.1%
• South Korea's Kospi: -0.5%
• Australia's ASX All Ordinaries: -1.4%

Major European indices trade on a mostly lower note amid ongoing worries about oil transit through the Strait of Hormuz. British travel booking service On the Beach suspended its guidance due to a significant slowdown in travel demand across the Eastern Mediterranean. Military contractor Leonardo reported strong results for Q4 and raised its guidance. BMW reported a drop in operating profit for 2025 and issued cautious guidance for 2026.

• In economic data:
  • Italy's Q4 Unemployment Rate 5.6% (expected 6.1%; last 6.1%)

---Equity Markets---

• STOXX Europe 600: -0.4%
• Germany's DAX: UNCH
• U.K.'s FTSE 100: -0.4%
• France's CAC 40: -0.4%
• Italy's FTSE MIB: -0.8%
• Spain's IBEX 35: -1.2%