Stock Market Update

The S&P 500 futures currently trade 35 points above fair value. 

Equity indices in the Asia-Pacific region ended the week on a higher note. Japan's CPI decelerated in April with Core CPI growing at its slowest pace in more than four years. China's National Development and Reform Commission pushed back on reports that technology firms were told not to accept foreign investment. There has been some speculation about a potential currency intervention from Japan's Ministry of Finance after the yen returned toward this year's low against the dollar in the 160 area.

• In economic data:
  • Japan's April National CPI 0.1% m/m (last 0.4%); 1.4% yr/yr (last 1.5%). April National Core CPI 1.4% yr/yr (expected 1.7%; last 1.8%)
  • South Korea's May Consumer Confidence 106.1 (last 99.2)
  • New Zealand's Q1 Retail Sales 0.9% qtr/qtr (expected 0.5%; last 0.9%) and Core Retail Sales 1.0% qtr/qtr (expected 0.8%; last 1.5%)

---Equity Markets---

• Japan's Nikkei: +2.7%
• Hong Kong's Hang Seng: +0.9%
• China's Shanghai Composite: +0.9%
• India's Sensex: +0.3%
• South Korea's Kospi: +0.4% 
• Australia's ASX All Ordinaries: +0.4%

Major European indices trade in the green. European Central Bank President Lagarde said that the central bank is particularly attentive to second-round effects of inflation while policymaker Demarco said that a June rate hike is likely. Germany's defense minister said that his country's defense spending will exceed 4% of GDP this year. Euronext said that it is not interested in merging with Deutsche Boerse.

• In economic data:
  • Germany's Q1 GDP 0.3% qtr/qtr, as expected (last 0.2%); 0.4% yr/yr (expected 0.3%; last 0.4%). June GfK Consumer Climate -29.8 (expected -33.7; last -33.1). May ifo Business Climate Index 84.9 (expected 84.2; last 84.5). May Current Assessment 86.1 (expected 85.1; last 85.4) and Business Expectations 83.8 (expected 83.5; last 83.5)
  • U.K.'s April Retail Sales -1.3% m/m (expected -0.6%; last 0.6%); 0.0% yr/yr (expected 1.3%; last 1.4%). April Core Retail Sales -0.4% m/m (expected -0.3%; last 0.1%); 1.1% yr/yr (expected 1.5%; last 1.5%). April Public Sector Net Borrowing GBP24.30 bln (expected GBP20.70 bln; last GBP11.50 bln)
  • France's May Business Survey 102 (expected 100; last 100)

---Equity Markets---

• STOXX Europe 600: +0.8% 
• Germany's DAX: +1.0% 
• U.K.'s FTSE 100: +0.5%
• France's CAC 40: +0.7% 
• Italy's FTSE MIB: +0.9% 
• Spain's IBEX 35: +0.5%