Stock Market Update

The S&P 500 futures currently trade 18 points above fair value. 

Equity indices in the Asia-Pacific region had a mostly lower showing on Wednesday while South Korea's Kospi (+2.3%) continued its record run with SK Hynix seeing its market cap grow past $1 trillion. Samsung's unionized workers approved the wage and bonus deal offered by the company. Japan's services inflation unexpectedly decelerated in April. Japan sold 40-yr JGBs to weak demand even though the auction size was reduced. The Reserve Bank of New Zealand left its official cash rate at 2.25%, as expected. Three out of seven policymaker voted for a hike, so a rate increase is expected in the coming months.

• In economic data:
  • China's April Industrial Profit 18.2% YTD (last 15.5%)
  • Japan's April Corporate Services Price Index 3.0% yr/yr (expected 3.3%; last 3.3%)
  • Australia's April MI Leading Index 0.0% m/m (last -0.1%). Q1 Construction Work Done 3.4% qtr/qtr (expected 0.8%; last 0.2%) and April CPI Indicator 4.2% yr/yr (expected 4.4%; last 4.6%)

---Equity Markets---

• Japan's Nikkei: UNCH
• Hong Kong's Hang Seng: -1.1%
• China's Shanghai Composite: -1.3%
• India's Sensex: -0.2%
• South Korea's Kospi: +2.3%
• Australia's ASX All Ordinaries: +0.7%

Major European indices trade in the green. The European Central Bank's latest Financial Stability review warned that high government spending needs and high hedge fund exposure to sovereign debt could amplify financial instability. European Central Bank policymaker Stournaras said that a June rate hike is likely. French Finance Minister Lescure said that a budget without tax increases will be presented with the deficit target remaining below 5%.

• In economic data:
  • France's May Consumer Confidence 82 (expected 83; last 84)
  • Italy's March Industrial Sales 2.0% m/m (last 0.5%); 4.4% yr/yr (last 0.5%)
  • Swiss May ZEW Expectations -11.1 (last -30.3)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: unch
• France's CAC 40: +1.0%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: +0.7%