Stock Market Update

The S&P 500 futures currently trade 64 points above fair value. 

Equity indices in the Asia-Pacific region ended Friday on a mixed note with Japan's Nikkei (+1.7%) and South Korea's Kospi (+2.3%) reaching fresh records. Overall sentiment was supported by news that President Trump signed the peace deal with Iran. China launched the third round of its consumer goods trade-in program after a contraction in May Retail Sales. Bank of Japan Deputy Governor Himino will take part in a semiannual monetary policy testimony tomorrow. Australian Securities and Investments Commission warned about the quality of private credit. Central banks in Indonesia and Philippines raised their policy rates.

• In economic data:
  • New Zealand's Q1 GDP 0.8% qtr/qtr, as expected (last 0.5%); 1.5% yr/yr (expected 1.1%; last 1.5%)

---Equity Markets---

• Japan's Nikkei: +1.7%
• Hong Kong's Hang Seng: -1.6%
• China's Shanghai Composite: -0.4%
• India's Sensex: +0.3%
• South Korea's Kospi: +2.3%
• Australia's ASX All Ordinaries: -0.6%

Major European indices trade on a mostly lower note. The Bank of England left its bank rate at 3.75%, which was expected, though two policymakers voted for a rate hike. The Swiss National Bank left its policy rate at 0.00%, which was also expected. Finally, Norges Bank left its policy rate at 4.25%, but hinted at a rate hike later this year. European Central Bank policymaker Kocher said that inflation will stay higher for some time and that the ECB remains ready to act.

• In economic data:
  • Eurozone's April Current Account surplus EUR15.7 bln (expected surplus of EUR18.5 bln; last surplus of EUR14.9 bln). April Construction Output 0.6% m/m (last 1.8%)
  • U.K.'s April three-month Employment Change 100,000 (expected 75,000; last 148,000), April Average Earnings Index + Bonus 4.4% yr/yr (expected 4.0%; last 4.4%). April Unemployment Rate 4.9% (expected 5.0%; last 5.0%), and May Claimant Count Change 31,200 (expected 25,800; last 8,300)

---Equity Markets---

• STOXX Europe 600: -0.3%
• Germany's DAX: +0.4%
• U.K.'s FTSE 100: -0.8%
• France's CAC 40: +0.2%
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: -0.1%