Stock Market Update

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

Equity indices in the Asia-Pacific region began the week on a higher note while markets in China and Japan were closed for holidays. China's markets will remain closed tomorrow while Japan's markets will be closed through Wednesday. South Korea's Kospi jumped more than 5.0% to a fresh record high after being closed on Friday. Japan's Prime Minister Takaichi pledged to increase defense cooperation with Australia. A senior Bank of Korea policymaker believes that the central bank should consider a rate hike, according to Yonhap.

• In economic data:
  • South Korea's April Manufacturing PMI 53.6 (last 52.6)
  • Singapore's April Manufacturing PMI 50.7 (last 50.5)
  • Australia's April MI Inflation Gauge 0.6% (last 1.3%) and April ANZ Job Advertisements -0.8% (last -3.2%). March Building Approvals -10.5% m/m (expected -10.2%; last 31.0%); 9.0% yr/yr (last 16.1%). March Private House Approvals 0.9% m/m (last 2.0%)
  • India's April Manufacturing PMI 54.7 (expected 55.9; last 53.9)

---Equity Markets---

• Japan's Nikkei: CLOSED
• Hong Kong's Hang Seng: +1.2%
• China's Shanghai Composite: CLOSED
• India's Sensex: +0.5%
• South Korea's Kospi: +5.1%
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade in the red while the U.K.'s FTSE is closed for Early May Bank Holiday. The European Central Bank's survey of professional forecasters raised the 2026 harmonized inflation forecast for the EU to 2.2% from 1.8% while the growth outlook was reduced to 1.0% from 1.2%. ECB policymaker De Guindos said that the war impact has not been fully reflected in economic data, but forward indicators point to a significant impact. Meanwhile, policymaker Rehn said that fast action will be needed if second-round inflation effects appear.

• In economic data:
  • Eurozone's April Manufacturing PMI 52.2, as expected (last 51.6). May Sentix Investor Confidence -16.4 (expected -20.9; last -19.2)
  • Germany's April Manufacturing PMI 51.4 (expected 51.2; last 52.2)
  • Italy's April Manufacturing PMI 52.1 (expected 51.6; last 51.3)
  • France's April Manufacturing PMI 52.8, as expected (last 50.0)
  • Spain's April Manufacturing PMI 51.7 (expected 49.5; last 48.7)
  • Swiss April Manufacturing PMI 54.5 (expected 52.0; last 53.3)

---Equity Markets---

• STOXX Europe 600: -0.3%
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: CLOSED
• France's CAC 40: -0.7%
• Italy's FTSE MIB: -0.7%
• Spain's IBEX 35: -1.5%