Stock Market Update

The S&P 500 futures currently trade 50 points above fair value. 

Equity indices in the Asia-Pacific region had a strong showing on Wednesday with South Korea's Kospi (+6.5%) powering to a fresh record after returning from yesterday's closure while Japan's Nikkei will reopen tomorrow. The Japanese yen extended last week's bounce against the dollar, prompting speculation about an intervention from Japan's Ministry of Finance. China has called on the U.S. to drop the Section 301 investigation into China's excess capacity ahead of President Trump's upcoming meeting with President Xi. New Zealand's Unemployment Rate dipped to 5.3% from 5.4% in April, but average hourly earnings decelerated.

• In economic data:
  • China's April RatingDog Services PMI 52.6 (expected 52.0; last 52.1)
  • South Korea's April CPI 0.5% m/m, as expected (last 0.3%); 2.6% yr/yr, as expected (last 2.2%)
  • Hong Kong's April Manufacturing PMI 48.6 (last 49.3) and March Retail Sales 12.8% yr/yr (last 19.3%)
  • New Zealand's Q1 Employment Change 0.2% qtr/qtr (expected 0.3%; last 0.5%) and Q1 Labor Cost Index 0.5% qtr/qtr (expected 0.4%; last 0.4%). Q1 Unemployment Rate 5.3% (expected 5.4%; last 5.4%) and Participation Rate 70.4% (expected 70.5%; last 70.5%). April AIG Construction Index -19.3 (last -57.1) and AIG Manufacturing Index -27.9 (last -28.6)
  • India's April Services PMI 58.8 (expected 57.9; last 57.5)

---Equity Markets---

• Japan's Nikkei: CLOSED
• Hong Kong's Hang Seng: +1.2%
• China's Shanghai Composite: +1.2%
• India's Sensex: +1.2%
• South Korea's Kospi: +6.5%
• Australia's ASX All Ordinaries: +1.3%

Major European indices trade on a firmly higher note, encouraged by news that President Trump ordered a pause to the U.S. control over movement of ships through the Strait of Hormuz due to progress in negotiations with Iran's leadership. France's President Macron is expected to name Emmanuel Moulin to succeed outgoing Bank of France Governor Villeroy de Galhau. Mr. Moulin previously served as secretary general to the president. Bank of England Governor Bailey said that investors should be mindful of risks associated with private credit.

• In economic data:
  • Eurozone's April Services PMI 47.6 (expected 47.4; last 50.2). March PPI 3.4% m/m (expected 3.3%; last -0.6%); 2.1% yr/yr (expected 1.8%; last -3.0%)
  • Germany's April Services PMI 46.9, as expected (last 50.9)
  • U.K.'s April Services PMI 52.7 (expected 52.0; last 50.5)
  • France's March Industrial Production 1.0% m/m (expected 0.5%; last -0.9%). April Services PMI 46.5, as expected (last 48.8)
  • Italy's April Services PMI 49.8 (expected 47.9; last 48.8). March Retail Sales 0.8% m/m (expected -0.4%; last -0.1%); 3.7% yr/yr (last 1.6%)
  • Spain's April Services PMI 47.9 (expected 51.9; last 53.3)

---Equity Markets---

• STOXX Europe 600: +2.3%
• Germany's DAX: +2.2%
• U.K.'s FTSE 100: +2.3%
• France's CAC 40: +3.1%
• Italy's FTSE MIB: +2.0%
• Spain's IBEX 35: +2.4%