Stock Market Update

The S&P 500 futures currently trade 24 points below fair value.

Equity indices in the Asia-Pacific region had a mostly higher showing on Thursday while markets in China and Hong Kong remained closed for Lunar New Year. South Korea's Kospi (+3.1%) reopened after this week's closure, vaulting to a fresh record high with help from relative strength in Samsung Electronics. Japan reported a big jump in Core Machinery Orders for December (+19.1% m/m; expected 5.1%), though it will be interesting to see if the growth is sustained in the coming months.

• In economic data:
  • Japan's December Core Machinery Orders 19.1% m/m (expected 5.1%; last -11.0%); 16.8% yr/yr (expected 3.9%; last -6.4%)
  • South Korea's January trade surplus $8.72 bln (expected surplus of $8.74 bln; last surplus of $12.17 bln). January Imports 11.6% yr/yr (expected 11.7%; last 4.6%) and Exports 33.8% yr/yr (expected 33.9%; last 13.3%)
  • Australia's January Employment Change 17,800 (expected 20,000; last 68,500) and full employment change 50,500 (last 56,900). January Unemployment Rate 4.1% (expected 4.2%; last 4.1%) and Participation Rate 66.7% (expected 66.8%; last 68.5%)

---Equity Markets---

• Japan's Nikkei: +0.6%
• Hong Kong's Hang Seng: CLOSED
• China's Shanghai Composite: CLOSED
• India's Sensex: -1.5%
• South Korea's Kospi: +3.1%
• Australia's ASX All Ordinaries: +0.8%

Major European indices trade in the red. Rio Tinto reported good results while Airbus beat Q4 expectations but issued cautious delivery guidance for the year. Air France beat expectations thanks to strong cost controls. European Central Bank President Lagarde told other ECB policymakers that she remains focused on her job amid recent reports that she will leave her post before the end of her term. The ECB's latest Economic Bulletin noted that the central bank needs to ensure that inflation stabilizes at the 2.0% target in the medium term.

• In economic data:
  • Eurozone's December Current Account surplus EUR14.6 bln (expected surplus of EUR9.8 bln; last surplus of EUR8.9 bln). December Construction Output 0.88% m/m (last -1.54%)
  • U.K.'s February CBI Industrial Trends Orders -28, as expected (last -30)
  • Spain's December trade deficit EUR5.57 bln (last deficit of EUR5.68 bln)
  • Swiss January trade surplus CHF3.818 bln (last surplus of CHF934 mln). Q4 Industrial Production -0.7% yr/yr (last 2.0%)

---Equity Markets---

• STOXX Europe 600: -0.6%
• Germany's DAX: -1.1%
• U.K.'s FTSE 100: -0.6%
• France's CAC 40: -0.8%
• Italy's FTSE MIB: -1.3%
• Spain's IBEX 35: -1.3%