Stock Market Update

The S&P 500 futures trade 14 points below fair value.

Equity indices in the Asia-Pacific region had a mostly lower showing on Thursday, though Japan's Nikkei (-0.8%) and South Korea's Kospi (+0.9%) set fresh record highs. The trading day started with some impulse selling that took place alongside a sudden jump in the price of oil amid speculation about renewed military action against Iran, but the speculation was never confirmed. South Korea's Q1 GDP growth (1.7%; expected 1.0%) was much stronger than expected. SK Hynix reported strong results but its guidance did not live up to sky-high expectations. Bank Indonesia made no policy changes, keeping its policy rate at 4.75%. New Zealand's Treasury sees the potential for FY25/26 inflation reaching 7.4% in a worst-case scenario.

• In economic data:
  • Japan's flash April Manufacturing PMI 54.9 (expected 51.1; last 51.6) and flash Services PMI 51.2 (last 53.4)
  • South Korea's April Consumer Confidence 99.2 (last 107.3). Q1 GDP 1.7% qtr/qtr (expected 1.0%; last -0.2%); 3.6% yr/yr (expected 2.7%; last 1.6%)
  • Hong Kong's March CPI 0.0% m/m (last 0.5%); 1.7% yr/yr (last 1.7%). March Unemployment Rate 3.7% (last 3.8%)
  • Singapore's March CPI 0.5% m/m (last 0.6%); 1.8% yr/yr (last 1.2%). Core CPI 1.7% yr/yr (last 1.4%)
  • India's flash April Manufacturing PMI 55.9 (last 53.9) and flash Services PMI 57.9 (last 57.5)
  • Australia's flash April Manufacturing PMI 51.0 (last 49.8) and flash Services PMI 50.3 (last 46.3)
  • New Zealand's March Credit Card Spending 2.1% yr/yr (last 1.1%)

---Equity Markets---

• Japan's Nikkei: -0.8%
• Hong Kong's Hang Seng: -1.0%
• China's Shanghai Composite: -0.3%
• India's Sensex: -1.1%
• South Korea's Kospi: +0.9%
• Australia's ASX All Ordinaries: -0.6%

Major European indices trade on a mostly lower note while France's CAC (+0.2%) outperforms with automakers and consumer names contributing to the strength. Flash April Manufacturing PMI readings from the region showed an acceleration in activity but Services PMI readings from Germany (46.9) and France (46.5) pointed to contracting activity. The U.K.'s Debt Management Office lowered its FY27 debt issuance forecast to GBP246.2 bln from GBP252.1 bln.

• In economic data:
  • Eurozone's flash April Manufacturing PMI 52.2 (expected 50.9; last 51.6) and flash Services PMI 47.4 (expected 49.8; last 50.2)
  • Germany's flash April Manufacturing PMI 51.2 (expected 51.4; last 52.2) and flash Services PMI 46.9 (expected 50.4; last 50.9)
  • U.K.'s March Public Sector Net Borrowing GBP12.60 bln (expected GBP10.40 bln; last -GBP12.80 bln). Flash April Manufacturing PMI 53.6 (expected 50.3; last 51.0) and flash Services PMI 52.0 (expected 50.0; last 50.5). April CBI Industrial Trends Orders -38 (expected -34; last -27)
  • France's April Business Survey 100 (expected 99; last 99). April Manufacturing PMI 52.8 (expected 49.5; last 50.0) and Services PMI 46.5 (expected 48.5; last 48.8)

---Equity Markets---

• STOXX Europe 600: -0.2%
• Germany's DAX: -0.5%
• U.K.'s FTSE 100: -0.5%
• France's CAC 40: +0.4%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: -1.0%