Stock Market Update

The S&P 500 futures currently trade 36 points above fair value.

Equity indices in the Asia-Pacific region had a mixed showing on Tuesday while markets in China, Japan, and South Korea were closed for holidays. Emerging market currencies have faced pressure with India's rupee and Indonesia's rupiah falling to fresh record lows against the dollar with the rupiah pressured by expectations for a Q1 contraction. The Reserve Bank of Australia raised its cash rate by 25 bps to 4.35%, as expected, hinting at a near-term pause in the tightening cycle.

• In economic data:
  • Singapore's March Retail Sales 3.7% m/m (last -4.3%); 4.8% yr/yr (last 8.3%)
  • Hong Kong's Q1 GDP 2.9% qtr/qtr (last 1.0%); 5.9% yr/yr (expected 3.5%; last 3.8%)
  • Australia's April Services PMI 50.7 (expected 50.3; last 46.3) and ANZ Commodity Price Index -0.8% m/m (last 4.2%)

---Equity Markets---

• Japan's Nikkei: CLOSED
• Hong Kong's Hang Seng: -0.8%
• China's Shanghai Composite: CLOSED
• India's Sensex: -0.3%
• South Korea's Kospi: CLOSED
• Australia's ASX All Ordinaries: -0.2%

Major European indices trade in the green while the U.K.'s FTSE (-1.3%) lags with financials and consumer names among the laggards. U.K.'s Gilts also lag with the 10-yr yield up nine basis points to 5.31% while other sovereign debt is little changed. HSBC missed Q1 profit expectations while UniCredit reported record results. Military contractor Rheinmetall missed Q1 revenue expectations. European Central Bank policymaker Nagel said that the ECB should be ready to act any time, echoing comments from other officials.

• In economic data:
  • Spain's April Unemployment Change -62,700 (expected -18,600; last -22,900)
  • Swiss April CPI 0.3% m/m, as expected (last 0.2%); 0.6% yr/yr (last 0.3%)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +1.2%
• U.K.'s FTSE 100: -1.4%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +2.0%
• Spain's IBEX 35: +1.1%