Stock Market Update

The S&P 500 futures currently trade 14 points above fair value. 

Equity indices in the Asia-Pacific region had a positive showing on Tuesday with South Korea's Kospi (+2.7%) and Japan's Nikkei (+2.4%) reaching levels from early March while markets in India were closed for a holiday. China reported a much smaller-than-expected trade surplus for March as import growth exceeded estimates by a wide margin while export growth missed expectations. Furthermore, exports in yuan terms decreased. The trade surplus with the U.S. narrowed to $16.8 bln, the smallest gap since late 2003. The market is no longer expecting the Bank of Japan to announce a rate hike on April 30 with the next hike being forecast for June.

• In economic data:
  • China's March trade surplus $51.13 bln (expected $107.20 bln; last $213.62 bln). March Imports 27.8% yr/yr (expected 11.1%; last 19.8%) and Exports 2.5% yr/yr (expected 8.3%; last 21.8%)
  • Japan's February Industrial Production -2.0% m/m (expected -2.1%; last 4.3%) and Capacity Utilization -0.1% m/m (last 2.9%)
  • Singapore's Q1 GDP -1.3% qtr/qtr (expected -0.5%; last 1.3%); 4.6% yr/yr (expected 5.4%; last 5.7%)
  • Australia's March NAB Business Survey 6 (last 6) and NAB Business Confidence -29 (last 0). April Westpac Consumer Sentiment -12.5% (last 1.2%)
  • New Zealand's February Visitor Arrivals 1.7% m/m (last 1.1%)

---Equity Markets---

• Japan's Nikkei: +2.4%
• Hong Kong's Hang Seng: +0.8%
• China's Shanghai Composite: +1.0%
• India's Sensex: CLOSED
• South Korea's Kospi: +2.7%
• Australia's ASX All Ordinaries: +0.6%

Major European indices trade on a higher note while the U.K.'s FTSE (+0.1%) lags amid weakness in energy and consumer names. Luxury goods names are among the laggards in the region after disappointing Q1 results from LVMH. The Bank of France expects domestic Q1 GDP growth of 0.3%, according to its monthly economic survey. European Central Bank policymaker Rehn said that rate decisions are not locked in ahead of time and that the inflationary impact of the Iran war remains unclear.

• In economic data:
  • Germany's March WPI 2.7% m/m (expected 0.4%; last 0.6%); 4.1% yr/yr (last 1.2%)
  • Spain's March CPI 1.2% m/m (expected 1.0%; last 0.4%); 3.4% yr/yr (expected 3.3%; last 2.3%). March Core CPI 2.9% yr/yr (expected 2.7%; last 2.7%)

---Equity Markets---

• STOXX Europe 600: +0.8%
• Germany's DAX: +1.1%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: +0.8%
• Italy's FTSE MIB: +1.0%
• Spain's IBEX 35: +0.9%