Stock Market Update

The S&P 500 futures currently trade 37 points above fair value.

Equity indices in the Asia-Pacific region ended the week on a mostly lower note with Japan's Nikkei (-0.2%) tagging a fresh record while South Korea's Kospi (+0.1%) also extended its push into record territory, recording a slim gain. On a side note, Kospi saw its biggest single-day foreign outflow of nearly $5 bln yesterday. Malaysia's central bank left its policy rate at 2.75%, as expected, while Indonesia's central bank warned about a big intervention to support the rupiah.

• In economic data:
  • Japan's April Services PMI 51.0 (expected 51.2; last 53.4). March Overall Wage Income 2.7% yr/yr (expected 3.2%; last 3.4%) and Overtime Pay 1.9% yr/yr (last 3.4%)
  • South Korea's March Current Account surplus $37.33 bln (last surplus of $23.19 bln)

---Equity Markets---

• Japan's Nikkei: -0.2% 
• Hong Kong's Hang Seng: -0.9% 
• China's Shanghai Composite: UNCH 
• India's Sensex: -0.7% 
• South Korea's Kospi: +0.1% 
• Australia's ASX All Ordinaries: -1.4%

Major European indices are on track for a mostly lower finish to the week. Maersk CEO said that he has not observed any demand destruction due to the conflict with Iran with volumes returning to levels from the start of the year. President Trump gave the EU a July 4 deadline to fulfill the trade agreement or face higher tariffs. Local elections in the U.K. resulted in a trouncing for the ruling Labour party and big losses for Conservative opposition while Reform had the best showing. Prime Minister Starmer said today that he will not resign despite the public's sharp turn against his party but calls for his departure are growing louder. Secretary of State Rubio is meeting with Italy's Prime Minister Meloni today.

• In economic data:
  • Germany's March trade surplus EUR14.3 bln (expected surplus of EUR17.8 bln; last surplus of EUR19.5 bln). March Imports 5.1% m/m (expected 0.8%; last 4.9%) and Exports 0.5% m/m (expected -1.7%; last 3.6%). March Industrial Production -0.7% m/m (expected 0.4%; last -0.5%); -3.0% yr/yr (last -0.3%)
  • Spain's March Industrial Production 1.8% yr/yr (last -0.9%)
  • Swiss Q2 SECO Consumer Climate -40 (expected -46; last -30)

---Equity Markets---

• STOXX Europe 600: -0.5% 
• Germany's DAX: -0.9% 
• U.K.'s FTSE 100: -0.1% 
• France's CAC 40: -0.8% 
• Italy's FTSE MIB: -0.1% 
• Spain's IBEX 35: -0.5%