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 lower finish to the week with geopolitical worries persisting into the weekend after it was reported that the Pentagon is sending an additional 10,000 troops to the Middle East. Japan's Finance Minister Katayama warned about a potential intervention in the currency market after the yen approached 160/dollar, its weakest level since mid-2024. Separately, the Japanese government confirmed a provisional budget of JPY8.6 trln. China has yet to confirm the rescheduled mid-May meeting between Presidents Trump and Xi. China imposed a 55% additional tariff on beef imports from Australia.

• In economic data:
  • China's February Industrial Profit 15.2% YTD (last 0.6%)

---Equity Markets---

• Japan's Nikkei: -0.4% 
• Hong Kong's Hang Seng: +0.4% 
• China's Shanghai Composite: +0.6%
• India's Sensex: -2.3%
• South Korea's Kospi: -0.4% 
• Australia's ASX All Ordinaries: -0.2%

Major European indices are on course for a lower finish to the week amid elevated geopolitical uncertainty into the weekend. European Central Bank policymaker Patsalides said that there is insufficient information at this time to decide whether an immediate rate hike is needed. AstraZeneca reported positive trial results while Novartis announced an acquisition.

• In economic data:
  • U.K.'s February Retail Sales -0.4% m/m (expected -0.6%; last 2.0%); 2.5% yr/yr (expected 2.1%; last 4.8%). February Core Retail Sales -0.4% m/m (expected -0.8%; last 2.2%); 3.4% yr/yr (expected 2.9%; last 5.9%)
  • Italy's February non-EU trade surplus EUR5.53 bln (last surplus of EUR2.23 bln)
  • Spain's flash March CPI 1.0% m/m (expected 1.2%; last 0.4%); 3.3% yr/yr (expected 3.6%; last 2.3%). Flash March Core CPI 2.7% yr/yr (last 2.7%)

---Equity Markets---

• STOXX Europe 600: -1.1%
• Germany's DAX: -1.1%
• U.K.'s FTSE 100: -0.3% 
• France's CAC 40: -0.6% 
• Italy's FTSE MIB: -0.9% 
• Spain's IBEX 35: -1.0%