Stock Market Update

The S&P 500 futures currently trade 13 points above fair value. 

Equity indices in the Asia-Pacific region ended Wednesday on a mostly higher note while markets in China, Hong Kong, Singapore, and South Korea remained closed for Lunar New Year. Japan's January trade balance showed strong export growth with exports to the EU and China making up for lower exports to the U.S. Japan's trade minister announced that $36 bln will be invested into three projects in the U.S. as part of the trade deal. The Reserve Bank of New Zealand left its official cash rate at 2.25%, as expected. The central bank's forward guidance left the door open for a rate hike by the end of the year.

• In economic data:
  • Japan's January trade surplus JPY460 bln (expected deficit of JPY180 bln; last deficit of JPY60 bln). January Imports -2.5% yr/yr (expected 3.0%; last 5.2%) and Exports 16.8% yr/yr (expected 12.0%; last 5.1%)
  • Australia's January MI Leading Index -0.1% m/m (last 0.1%). Q4 Wage Price Index 0.8% qtr/qtr, as expected (last 0.8%); 3.4% yr/yr (last 3.3%)
  • New Zealand's Q4 Input PPI -0.5% qtr/qtr (expected 0.4%; last 0.2%); 0.1% qtr/qtr (expected 0.6%; last 0.6%)

---Equity Markets---

• Japan's Nikkei: +1.0%
• Hong Kong's Hang Seng: CLOSED
• China's Shanghai Composite: CLOSED
• India's Sensex: +0.3%
• South Korea's Kospi: CLOSED
• Australia's ASX All Ordinaries: +0.6%

Major European indices trade in the green. British inflation decelerated notably in January, increasing expectations for a March rate cut from the Bank of England. European Central Bank President Lagarde is reportedly planning to leave her post before the French presidential election in early 2027, though her term as ECB president does not end until October 2027. European Central Bank policymaker Villeroy de Galhau said that French growth is expected to exceed 1.0% this year, adding that the ECB has won the battle against inflation.

• In economic data:
  • U.K.'s January CPI -0.5% m/m, as expected (last 0.4%); 3.0% yr/yr, as expected (last 3.4%). January Core CPI -0.6% m/m (expected -0.7%; last 0.3%); 3.1% yr/yr (expected 3.0%; last 3.2%). January Input PPI 0.4% m/m, as expected (last -0.5%) and Output PPI 0.0% m/m (expected 0.2%; last -0.1%). January House Price Index 2.4% yr/yr (expected 1.8%; last 2.5%)
  • France's January CPI -0.3% m/m, as expected (last 0.1%); 0.3% yr/yr, as expected (last 0.8%)

---Equity Markets---

• STOXX Europe 600: +0.8%
• Germany's DAX: +0.7%
• U.K.'s FTSE 100: +1.1%
• France's CAC 40: +0.3%
• Italy's FTSE MIB: +1.1%
• Spain's IBEX 35: +1.0%