Stock Market Update

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

Equity indices in the Asia-Pacific region began the week on a mixed note with South Korea's Kospi (+4.3%) powering to a fresh record while Japan's Nikkei (-0.5%) set a fresh record before turning lower. Preparations are underway for President Trump's visit to Beijing later this week. Treasury Secretary Bessent will visit Japan and South Korea over the next couple days ahead of President Trump's trip to China. China reported a solid trade surplus for April, but the report also showed a sharp drop in crude oil imports. South Korea's exports through the first ten days of May were up 43.7% yr/yr with chip exports spiking 149.8%.

• In economic data:
  • China's April trade surplus $84.80 bln (expected surplus of $83.10 bln; last surplus of $51.13 bln). April Imports 25.3% yr/yr (expected 15.2%; last 27.8%) and Exports 14.1% yr/yr (expected 7.9%; last 2.5%). April CPI 0.3% m/m (expected -0.1%; last -0.7%); 1.2% yr/yr (expected 0.9%; last 1.0%). April PPI 2.8% yr/yr (expected 1.7%; last 0.5%)
  • Australia's March Building Approvals -10.5% m/m, as expected (last 31.0%); 9.0% yr/yr, as expected (last 16.1%). March Private House Approvals 0.9% m/m, as expected (last 2.0%)

---Equity Markets---

• Japan's Nikkei: -0.5%
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: +1.1%
• India's Sensex: -1.7%
• South Korea's Kospi: +4.3%
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade on a mostly lower note while Italy's MIB (+0.2%) outperforms. Defiant British Prime Minister Starmer, who is arguably the least popular prime minister in the U.K.'s history, has refused to resign despite his party being trounced in local elections last week. European Central Bank Vice President de Guindos said that rates should be managed prudently as growth weakens while policymaker Kocher said that the risk of a stagflationary trend can't be ruled out.

• No data today

---Equity Markets---

• STOXX Europe 600: -0.2%
• Germany's DAX: -0.3%
• U.K.'s FTSE 100: unch
• France's CAC 40: -1.0%
• Italy's FTSE MIB: +0.2%
• Spain's IBEX 35: -0.5%