Stock Market Update

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

Equity indices in the Asia-Pacific region began April on a firmly higher note with South Korea's Kospi (+8.4%) leading the way to the upside. The market drew some additional encouragement from President Trump's comments that U.S. forces may be withdrawn from Iran within the next couple weeks. South Korean officials said that there will be no disruptions to the supply of helium and ethylene gas through the first half of the year. March Manufacturing PMI readings from China, Japan, and South Korea remained in expansion while Australia's reading indicated a contraction due to a shortage of materials. The Bank of Japan will reduce its bond purchases by about 8% in Q2, which was expected.

• In economic data: 
  • China's March RatingDog Manufacturing PMI 50.8 (expected 51.6; last 52.1)
  • Japan's March Manufacturing PMI 51.6, as expected (last 51.4). Q1 Tankan Large Manufacturers Index 17 (expected 16; last 16) and Large Non-Manufacturers Index 36 (expected 33; last 34). Q1 All Big Industry Capex 3.3% (last 12.6%) and All Small Industry Capex -8.1% (last 0.1%)
  • South Korea's flash March trade surplus $25.74 bln (expected surplus of $21.20 bln; last surplus of $15.38 bln). March Imports 13.2% yr/yr (expected 18.0%; last 7.5%) and Exports 48.3% yr/yr (expected 44.9%; last 28.7%). March Manufacturing PMI 52.6 (last 51.1)
  • Hong Kong's February Retail Sales 19.3% yr/yr (last 5.5%)
  • Singapore's Q1 URA Property Index 0.3% qtr/qtr (last 0.6%)
  • Australia's March Manufacturing PMI 49.8 (expected 50.1; last 51.0). Flash February Building Approvals 29.7% m/m (expected 5.8%; last -7.2%); 14.0% yr/yr (last -15.7%). February Private House Approvals 0.2% m/m (last 1.7%)
  • New Zealand's February Building Consents 2.7% m/m (last 2.0%)

---Equity Markets--- 

• Japan's Nikkei: +5.2%
• Hong Kong's Hang Seng: +2.0%
• China's Shanghai Composite: +1.5%
• India's Sensex: +1.7%
• South Korea's Kospi: +8.4%
• Australia's ASX All Ordinaries: +2.3%

Major European indices trade in the green amid overall improvement in geopolitical sentiment. Most March Manufacturing PMI readings from the region's main economies remained in expansion despite the surging energy prices. Spain was an outlier, falling into contraction (48.7). European Central Bank policymaker Rehn said that the latest inflation reading was not a surprise and that a rate hike should not be seen as certain. Germany's economy minister urged a return to nuclear power.

• In economic data:
  • Eurozone's March Manufacturing PMI 51.6 (expected 51.4; last 50.8) and February Unemployment Rate 6.2% (expected 6.1%; last 6.1%)
  • Germany's March Manufacturing PMI 52.2 (expected 51.7; last 50.9)
  • U.K.'s March Manufacturing PMI 51.0 (expected 51.4; last 51.7)
  • Italy's March Manufacturing PMI 51.3 (expected 50.9; last 50.6). February Unemployment Rate 5.3% (expected 5.2%; last 5.2%)
  • France's March Manufacturing PMI 50.0 (expected 50.2; last 50.2)
  • Spain's March Manufacturing PMI 48.7 (expected 50.5; last 50.0)
  • Swiss February Retail Sales 0.9% yr/yr (expected 1.5%; last -0.6%). March Manufacturing PMI 53.3 (expected 50.5; last 50.0)

---Equity Markets---

• STOXX Europe 600: +2.1%
• Germany's DAX: +2.6%
• U.K.'s FTSE 100: +1.7%
• France's CAC 40: +1.8%
• Italy's FTSE MIB: +3.0%
• Spain's IBEX 35: +2.8%