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 finish to the week while Japan's Nikkei was closed for a holiday. China Securities Journal reported that the Chinese government may reform the consumption tax to increase local income. The People's Bank of China made no changes to its one-year (3.00%) and five-year (3.50%) loan prime rates. Australia is scrambling to increase the domestic supply of fuel. Meanwhile, weakness in Australian debt sent its 10-yr yield past the 5.000% mark to a level not seen since mid-2011.

• In economic data:
  • China's February FDI -5.7% YTD (last -5.7%)
  • Hong Kong's February CPI 0.5% m/m (last 0.2%); 1.7% yr/yr (expected 1.6%; last 1.1%)
  • Singapore's Q4 Unemployment Rate 2.0%, as expected (last 2.0%)
  • New Zealand's February trade deficit NZD257 mln (expected deficit of NZD740 mln; last deficit of NZD627 mln). February Credit Card Spending -1.1% yr/yr (last 0.9%)

---Equity Markets---

• Japan's Nikkei: CLOSED 
• Hong Kong's Hang Seng: -0.9%
• China's Shanghai Composite: -1.2%
• India's Sensex: +0.4% 
• South Korea's Kospi: +0.3%
• Australia's ASX All Ordinaries: -0.7%

Major European indices are looking for a mostly upbeat finish to a down week. Expectations for a June rate hike from the European Central Bank are solidifying with the market speculating that a hike could come as soon as April. The spread between Brent crude and WTI crude approached $21/bbl overnight, the widest level seen since early 2013. Spain will reduce its taxes on fuel. Unilever may sell its food unit to McCormick.

• In economic data:
  • Eurozone's January trade deficit EUR1.9 bln (expected surplus of EUR12.8 bln; last surplus of EUR11.2 bln). Current Account surplus EUR37.9 bln (expected surplus of EUR17.2 bln; last surplus of EUR14.6 bln)
  • Germany's February PPI -0.5% m/m (expected 0.3%; last -0.6%); -3.3% yr/yr (expected -2.7%; last -3.0%)
  • U.K.'s February Public Sector Net Borrowing GBP14.30 bln (expected GBP8.70 bln; last -GBP31.9 bln). March CBI Industrial Trends Orders -27 (expected -30; last -28)
  • Italy's January trade surplus EUR1.089 bln (expected surplus of EUR5.65 bln; last surplus of EUR5.993 bln)

---Equity Markets---

• STOXX Europe 600: +0.4% 
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: +0.3%
• France's CAC 40: +0.3% 
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.9%