Stock Market Update

The S&P 500 futures currently trade 15 points above fair value. 

Equity indices in the Asia-Pacific region ended Tuesday on a higher note with South Korea's Kospi (+2.7%) powering to another fresh record even though President Trump said that the tariff on imports from South Korea will be increased to 25% from 15% because South Korean legislature has not passed the trade agreement that was made with the U.S. However, South Korea's parliament is still expected to vote on the deal by the end of February. China's Ministry of Commerce said that it will create conditions for attracting foreign investment. China warned its citizens against traveling to Japan for Lunar New Year, claiming "severe" safety threats.

• In economic data:
  • China's December Industrial Profit 0.6% YTD (last 0.1%)
  • Japan's December Corporate Services Price Index 2.6% yr/yr (expected 2.7%; last 2.7%). November BoJ Core CPI 1.9% (expected 2.0%; last 2.2%)
  • South Korea's January Consumer Confidence 73.0 (last 70.0)
  • Hong Kong's December trade deficit $63.3 bln (last deficit of $48.5 bln). December Imports 30.6% m/m (last 18.1%) and Exports 26.1% m/m (last 18.8%)
  • Australia's December NAB Business Survey 9 (last 7) and Business Confidence 3 (last 2)
  • New Zealand's December Credit Card Spending -0.3% yr/yr (last 4.4%)

---Equity Markets---

• Japan's Nikkei: +0.9%
• Hong Kong's Hang Seng: +1.4%
• China's Shanghai Composite: +0.2%
• India's Sensex: +0.4%
• South Korea's Kospi: +2.7%
• Australia's ASX All Ordinaries: +0.9%

Major European indices trade on a mostly higher note while Germany's DAX (-0.2%) has been weighed down by automakers after the EU signed a trade deal with India. Germany's economy minister said that he expects some debt-fueled growth this year but does not expect it to be sustainable. European Central Bank policymaker Kocher said that "a lot" has happened since the last ECB meeting and that the ability to act quickly and decisively is important. This comes after multiple ECB policymakers said that policy is in a good place in recent weeks.

• In economic data:
  • France's January Consumer Confidence 90, as expected (last 90)
  • Spain's Q4 Unemployment Rate 9.93% (expected 10.20%; last 10.45%)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: -0.2%
• U.K.'s FTSE 100: +0.7%
• France's CAC 40: +0.4%
• Italy's FTSE MIB: +0.7%
• Spain's IBEX 35: +0.6%