Stock Market Update

The S&P 500 futures currently trade one point above fair value.

Equity indices in the Asia-Pacific region traded higher Tuesday, with Japan's Nikkei (+2.2%) continuing to run on stimulus expectations following the LDP's convincing snap election victory over the weekend. Other markets registered more modest gains, supported in part by the dollar's weakness. Taiwan's top trade negotiator said it would be impossible to relocate 40% of the island's semiconductor supply chain to the U.S. before the end of President Trump's second term, according to CNBC. President Trump and President Xi are expected to meet in China in early April, but a White House official reportedly said that meeting has not yet been finalized. FTSE Russell is going to be postponing its stock index review for Indonesia that had been scheduled for March 2026 due to the potential for adverse turnover and uncertainty in determining accurate free float percentages of Indonesian securities.

• In economic data:
  • Japan's M2 Money Stock 1.6% yr/yr (expected 1.7%; prior 1.7%); Machine Tool Orders 25.3% yr/yr (prior 10.9%)
  • Australia's February Westpac Consumer Sentiment 90.5 (prior 92.9); January NAB Confidence 3 (prior 2)

---Equity Markets---

• Japan's Nikkei: +2.2%
• Hong Kong's Hang Seng: +0.6%
• China's Shanghai Composite: +0.1%
• India's Sensex: +0.3%
• South Korea's Kospi: +0.1%
• Australia's All Ordinaries: +0.1%

Major European indices are flattish, with the exception of the U.K.'s FTSE 100 (-0.3%), which has been weighed down by losses in BP after the oil giant suspended its share buybacks to shore up its balance sheet. Elsewhere, better-than-expected results from French company Kering put a bid in fellow luxury stocks. ECB member Villeroy will be resigning from his post on June 1, 2026, versus the officially scheduled end date of October 2027. UK Prime Minister Starmer has reportedly garnered support to remain in power, although questions remain surrounding his leadership due to the associated fallout from the Epstein scandal.

• In economic data:
  • UK's January Retail Sales Monitor 2.3% yr/yr (expected 1.3%; prior 1.0%)
  • France's Q4 Unemployment Rate 7.9% (expected 7.8%; prior 7.7%)

---Equity Markets---

• STOXX Europe 600: flat
• Germany's DAX: flat
• U.K.'s FTSE 100: -0.5%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: +0.2%
• Spain's IBEX 35: +0.3%