Stock Market Update

The S&P 500 futures currently trade 80 points below fair value.

Equity indices in the Asia-Pacific region had a mostly lower start to the week amid focus on a weekend joint Israel-U.S. operation against Iran, which resulted in killing of Supreme Leader Khameni. Bank of Japan Deputy Governor Himino said that rate hikes will continue, but he did not specify the planned timing of the next increase. Japan's Manufacturing PMI (53.0) expanded for the second consecutive month in February.

• In economic data:
  • China's January FDI -5.7% YTD (last -9.5%)
  • Japan's February Manufacturing PMI 53.0 (expected 52.8; last 51.5)
  • South Korea's February trade surplus $15.51 bln (expected surplus of $10.00 bln; last surplus of $8.72 bln). February Imports 7.5% yr/yr (expected 13.0%; last 11.6%) and Exports 29.0% yr/yr (expected 24.0%; last 33.8%)
  • Australia's February Manufacturing PMI 51.0 (expected 51.5; last 52.3). February MI Inflation Gauge -0.2% m/m (last 0.2%), and February Commodity Prices 2.7% yr/yr (last 2.7%). Q4 Company Gross Operating Profits 5.8% qtr/qtr (expected 1.8%; last 1.5%) and Q4 Company Pre-tax profits 1.6% qtr/qtr (last 0.4%)
  • India's February Manufacturing PMI 56.9 (expected 57.5; last 55.4). January Industrial Production 4.8% yr/yr (expected 6.5%; last 7.8%) and January Manufacturing Output 4.8% (last 8.1%)

---Equity Markets---

• Japan's Nikkei: -1.4%
• Hong Kong's Hang Seng: -2.1%
• China's Shanghai Composite: +0.5%
• India's Sensex: -1.3%
• South Korea's Kospi: CLOSED
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade in the red amid some pressure on sentiment stemming from the weekend joint Israel-U.S. military action against Iran. Travel-related names are among the worst performers while shipping, energy, and military contractor names have shown relative strength. Germany reported weak Retail Sales for January (-0.9%; expected 0.0%) while final February Manufacturing PMI readings from the region pointed to slight growth.

• In economic data:
  • Eurozone's February Manufacturing PMI 50.8, as expected (last 49.5)
  • Germany's January Retail Sales -0.9% m/m (expected 0.0%; last 1.2%); 1.2% yr/yr (last 4.3%). February Manufacturing PMI 50.9 (expected 50.7; last 49.1)
  • U.K.'s February Nationwide HPI 0.3% m/m (expected 0.2%; last 0.3%); 1.0% yr/yr (expected 0.7%; last 1.0%). February Manufacturing PMI 51.7 (expected 52.0; last 52.0). January Mortgage Approvals 60,000 (expected 62,000; last 61,010) and January Net Lending to Individuals GBP5.90 bln (expected GBP6.20 bln; last GBP6.10 bln)
  • France's February Manufacturing PMI 50.1 (expected 49.9; last 51.2)
  • Italy's February Manufacturing PMI 50.6 (expected 49.1; last 48.1)
  • Spain's February Manufacturing PMI 50.0 (expected 49.9; last 49.2)
  • Swiss January Retail Sales -1.1% yr/yr (expected 2.7%; last 2.8%) and February Manufacturing PMI 47.4 (expected 49.8; last 48.8)

---Equity Markets---

• STOXX Europe 600: -1.9%
• Germany's DAX: -2.8%
• U.K.'s FTSE 100: -1.6%
• France's CAC 40: -2.2%
• Italy's FTSE MIB: -2.5%
• Spain's IBEX 35: -3.1%