Stock Market Update

The S&P 500 futures currently trade 22 points below fair value. 

Equity indices in the Asia-Pacific region had a mostly higher start to the week while markets in China, Hong Kong, Singapore, and South Korea were closed for Lunar New Year. All these markets will remain closed tomorrow with Hong Kong scheduled to reopen on Friday, while China's markets will remain closed until next week. Japan's Q4 GDP report, which was released on Sunday evening, disappointed, showing growth of just 0.1% quarter-over-quarter (expected 0.4%) while the year-over-year reading was up 0.2% (expected 1.6%). The report pressured rate hike expectations for March, but the market continues expecting a hike to be announced in April.

• In economic data:
  • Japan's December Tertiary Industry Activity Index 8.40 (last -2.50)
  • New Zealand's January FPI 2.5% m/m (last -0.3%)

---Equity Markets---

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

Major European indices sit mixed. The market grew more confident about the probability of a March rate cut from the Bank of England after underwhelming December employment figures from the U.K. Miner BHP reported strong results for the first half of its fiscal year and announced a silver streaming agreement with Wheaton Precious Metals. Shipper Hapag-Lloyd agreed to acquire ZIM Integrated Shipping. Sweden's finance minister said that his country has no plans to adopt the euro in the coming years.

• In economic data:
  • Eurozone's February ZEW Economic Sentiment 39.4 (expected 45.7; last 40.8)
  • Germany's February ZEW Economic Sentiment 58.3 (expected 65.8; last 56.9) and ZEW Current Conditions -65.9 (expected -65.7; last -72.7). January CPI 0.1% m/m, as expected (last 0.0%); 2.1% yr/yr, as expected (last 1.8%)
  • U.K.'s December Average Earnings Index + Bonus 4.2% yr/yr (expected 4.6%; last 4.6%). December three-month employment change 52,000 (last 82,000) and December Unemployment Rate 5.2%, as expected (last 5.1%). January Claimant Count change 28,600 (expected 22,800; last 2,700). Q3 Labour Productivity 1.1% (expected -0.6%; last -0.5%)
  • Italy's December trade surplus EUR6.037 bln (expected surplus of EUR4.75 bln; last surplus of EUR5.056 bln)

---Equity Markets---

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