Stock Market Update

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

Equity indices in the Asia-Pacific region began the week on a higher note with Japan's Nikkei (+3.9%) soaring to a fresh record after a snap election resulted in supermajority for Prime Minister Takaichi's LDP even before factoring the seats that were won by LDP's coalition partner Ishin. The win puts the prime minister in position to implement her economic agenda. Finance Minister Katayama attempted to assuage investors by saying that there will be no additional bond issuance to fund the prime minister's agenda. Elsewhere, Thailand's election produced a three-way deadlock that was largely expected. China has resumed some rare earth exports to Japan while Australia placed a 10% tariff on steel imports from China.

• In economic data:
  • Japan's December Overall Wage Income 2.4% yr/yr (expected 3.0%; last 1.7%). December Current Account surplus JPY2.70 trln (expected surplus of JPY2.95 trln; last surplus of JPY3.14 trln). January Bank Lending 4.5% yr/yr, as expected (last 4.3%) and January Economy Watchers Current Index 47.8 (expected 49.1; last 47.7)

---Equity Markets---

• Japan's Nikkei: +3.9%
• Hong Kong's Hang Seng: +1.8%
• China's Shanghai Composite: +0.1%
• India's Sensex: +0.6%
• South Korea's Kospi: +4.1%
• Australia's ASX All Ordinaries: +2.0%

Major European indices trade on a mostly higher note while the U.K.'s FTSE (-0.3%) underperforms with financials contributing to the weakness. Speculation is on the rise that British Prime Minister Starmer could be ousted after his unimpressive visit to China and growing focus on his knowledge of Lord Mandelson's ties to Jeffrey Epstein. A weekend election in Spain resulted in a rightward shift with Prime Minister Sanchez's Socialist party seeing its support fall to 24.5% from 29.5%. In Portugal, Socialist Jose Seguro was elected president. 

• In economic data:
  • Eurozone's February Sentix Investor Confidence 4.2 (expected -0.2; last -1.8)
  • Swiss Q1 SECO Consumer Climate -30, as expected (last -37)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.5%
• U.K.'s FTSE 100: -0.4%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: +1.4%
• Spain's IBEX 35: +0.5%