Stock Market Update

The S&P 500 futures currently trade 77 points below fair value. 

Equity indices in the Asia-Pacific region had a poor start to the week amid a continued rise in the price of oil, which has soared past the $100/bbl mark to its highest level since mid-2022. Japanese refiners requested a release from the national reserve, but an official decision has not been made yet. Later in the night, FT reported that G7 nations are discussing a potential joint reserve release, which helped pressure crude oil futures from a high near $120/bbl. Japan's real wages for January increased for the first time in 13 months with base salaries growing at their fastest pace since 1992.

• In economic data:
  • China's February CPI 1.0% m/m (last 0.2%); 1.3% yr/yr (expected 0.9%; last 0.2%). February PPI -0.9% yr/yr (expected -1.1%; last -1.4%)
  • Japan's January Overall Wage Income 3.0% yr/yr (expected 2.5%; last 2.4%). January Leading Index 112.4 (expected 113.0; last 110.3) and January Coincident Indicator 2.5% m/m (last -0.5%)

---Equity Markets---

• Japan's Nikkei: -5.2%
• Hong Kong's Hang Seng: -1.4%
• China's Shanghai Composite: -0.7%
• India's Sensex: -1.7%
• South Korea's Kospi: -6.0%
• Australia's ASX All Ordinaries: -2.9%

Major European indices trade in the red amid pressure on sentiment stemming from an ongoing rise in the price of oil. Lufthansa and ASML are among the laggards while British homebuilder Barratt Redrow is also under pressure amid rising Gilt yields. French President Macron said that G7 officials are likely to hold a joint call this week to address surging energy prices.

• In economic data:
  • Eurozone's March Sentix Investor Confidence -3.1, as expected (last 4.2)
  • Germany's January Factory Orders -11.1% m/m (expected -4.2%; last 6.4%). January Industrial Production -0.5% m/m (expected 1.0%; last -1.0%); -1.1% yr/yr (last 0.4%)
  • Swiss February SECO Consumer Climate -30 (expected -29; last -30)

---Equity Markets---

• STOXX Europe 600: -1.8%
• Germany's DAX: -1.6%
• U.K.'s FTSE 100: -1.4%
• France's CAC 40: -2.2%
• Italy's FTSE MIB: -1.6%
• Spain's IBEX 35: -1.8%