Stock Market Update

The S&P 500 futures currently trade 41 points above fair value.

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note with South Korea's Kospi (-1.4%) opening at a fresh record before reversing. April Manufacturing PMI readings from China showed an ongoing expansion at a slow pace while Non-Manufacturing PMI (49.4) dipped below 50.0, signaling a contraction in the services sector. Japan sold 2-yr JGBs to very strong demand. Standard & Poor's affirmed South Korea's AA rating with a Stable outlook.

• In economic data:
  • China's April Manufacturing PMI 50.3 (expected 50.1; last 50.4) and Non-Manufacturing PMI 49.4 (expected 49.9; last 50.1). April RatingDog Manufacturing PMI 52.2 (expected 50.9; last 50.8)
  • Japan's March Industrial Production -0.5% m/m (expected 1.0%; last -2.0%) and March Retail Sales 1.7% yr/yr (expected 0.9%; last -0.1%). April Household Confidence 32.2 (expected 32.8; last 33.3), March Housing Starts -29.3% yr/yr (expected -28.7%; last -4.9%), and Construction Orders -14.4% yr/yr (last 42.7%)
  • South Korea's March Retail sales 1.8% m/m (last -0.3%), March Industrial Production 3.6% yr/yr (expected 3.8%; last -2.3%), and March Service Sector Output 1.4% m/m (last 0.3%)
  • Singapore's Q1 Unemployment Rate 2.1% (last 2.0%) and March Bank Lending SGD902.3 bln (last SGD893.6 bln). Q1 Business Expectations 17.0 (last 11.0)
  • Australia's March Housing Credit 0.6% m/m (last 0.6%), and Private Sector Credit 0.7% m/m (expected 0.6%; last 0.6%). Q1 Import Price Index 0.1% qtr/qtr (expected 0.4%; last 0.9%) and Export Price Index 0.5% qtr/qtr (last 3.2%)
  • New Zealand's April ANZ Business Confidence -10.6 (last 32.5)

---Equity Markets---

• Japan's Nikkei: -1.1%
• Hong Kong's Hang Seng: -1.3%
• China's Shanghai Composite: +0.1%
• India's Sensex: -0.8%
• South Korea's Kospi: -1.4%
• Australia's ASX All Ordinaries: -0.3%

Major European indices trade on a mostly higher note after overcoming some early weakness. Flash Q1 GDP readings from Germany, Italy, and Spain beat expectations while France lagged, reporting no growth. The Bank of England left its bank rate at 3.75%, as expected, while the European Central Bank is also expected to hold its policy steady later this morning. Societe Generale, BNP Paribas, and Stellantis are under pressure after disappointing earnings.

• In economic data:
  • Eurozone's Q1 GDP 0.1% qtr/qtr (expected 0.2%; last 0.2%); 0.8% yr/yr (expected 0.9%; last 1.2%). Flash April CPI 1.0% m/m (last 1.3%); 3.0% yr/yr, as expected (last 2.6%). Flash April Core CPI 2.2% yr/yr, as expected (last 2.3%)
  • Germany's Q1 GDP 0.3% qtr/qtr (expected 0.1%; las 0.3%); 0.3% yr/yr, as expected (last 0.4%). March Retail Sales -2.0% m/m (expected -0.3%; last -0.3%); -2.0% yr/yr (expected 0.5%; last 0.9%). March Import Price Index 3.6% m/m, as expected (last 0.3%); 2.3% yr/yr (expected 1.6%; last -2.3%). April Unemployment Change 20,000 (expected 4,000; last 3,000), and Unemployment Rate 6.4% (expected 6.3%; last 6.4%)
  • France's Q1 GDP 0.0% qtr/qtr (expected 0.2%; last 0.2%); 1.1% yr/yr (last 1.3%). Flash April CPI 1.0% m/m (expected 0.9%; last 1.0%); 2.2% yr/yr (expected 2.0%; last 1.7%). March PPI 2.0% m/m (last -0.3%); 0.2% yr/yr (last -2.4%). March Consumer Spending 0.7% m/m, as expected (last -1.4%)
  • Italy's Q1 GDP 0.2% qtr/qtr (expected 0.1%; last 0.3%); 0.7% yr/yr (expected 0.6%; last 0.8%). March Unemployment Rate 5.2% (expected 5.3%; last 5.4%). Flash April CPI 1.2% m/m (expected 0.9%; last 0.5%); 2.8% yr/yr (expected 2.6%; last 1.7%)
  • Spain's Q1 GDP 0.6% qtr/qtr (expected 0.5%; last 0.8%); 2.7% yr/yr, as expected (last 2.7%). March Consumer Confidence 66.9 (last 83.9). February Current Account surplus EUR4.04 bln (last surplus of EUR2.73 bln)

---Equity Markets---

• STOXX Europe 600: +1.0%
• Germany's DAX: +1.0%
• U.K.'s FTSE 100: +1.6%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: +0.2%
• Spain's IBEX 35: +0.3%