Stock Market Update

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

Equity indices in the Asia-Pacific region had a generally positive showing with Japan's Nikkei (+2.4%) rallying to a fresh record high while South Korea's Kospi (+2.2%) approached its record from late February. China's President Xi pledged to increase cooperation with Russia after meeting with Russia's Foreign Minister Lavrov. Russia's President Putin is expected to visit China in late May. China's Q1 GDP was in line with expectations, but Retail Sales growth in March decelerated to its slowest pace since December. Australia saw in-line job growth in March.

• In economic data:
  • China's Q1 GDP 1.3% qtr/qtr, as expected (last 1.2%); 5.0% yr/yr (expected 4.8%; last 4.5%). March Fixed Asset Investment 1.7% yr/yr (expected 1.9%; last 1.8%), March Industrial Production 5.7% yr/yr (expected 5.4%; last 6.3%), March House Prices -3.4% yr/yr (last -3.2%), and March Retail Sales 1.7% yr/yr (expected 2.4%; last 2.8%)
  • Australia's April MI Inflation Expectations 5.9% (last 5.2%). March Employment Change 17,900 (expected 19,100; last 49,700) and full Employment Change 52,500 (last -27,700). March Unemployment Rate 4.3%, as expected (last 4.3%), and March Participation Rate 66.8% (expected 66.9%; last 66.9%)

---Equity Markets---

• Japan's Nikkei: +2.4% 
• Hong Kong's Hang Seng: +1.7%
• China's Shanghai Composite: +0.7% 
• India's Sensex: -0.2%
• South Korea's Kospi: +2.2%
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade in the green. The U.K. reported strong growth for February, prompting an opinion from Deutsche Bank that Q1 growth could be well ahead of expectations. However, Gilt yields are lower this morning, suggesting the market believes the strength is temporary. European Central Bank officials are reportedly skeptical about an April rate hike due to little evidence of knock-on effects from the energy price spike. The European Banking Authority noted that private credit does not pose a systemic risk to banks in the EU.

• In economic data:
  • Eurozone's March CPI 1.3% m/m (expected 1.2%; last 0.6%); 2.6% yr/yr (expected 2.5%; last 1.9%). March Core CPI 2.3% yr/yr, as expected (last 2.4%) o U.K.'s February GDP 0.5% m/m (expected 0.1%; last 0.1%), February Manufacturing Production -0.1% m/m (expected 0.3%; last 0.2%); -0.5% yr/yr (expected -0.3%; last 1.3%). February Industrial Production 0.5% m/m (expected 0.3%; last -0.1%); -0.4% yr/yr (expected -0.9%; last 0.5%). February Construction Output 1.0% m/m (expected -0.4%; last 0.5%); -1.0% yr/yr (expected -0.4%; last -1.9%). February trade deficit GBP18.79 bln (expected deficit of GBP19.40 bln; last deficit of GBP15.08 bln)
  • Italy's March CPI 0.5% m/m, as expected (last 0.7%); 1.7% yr/yr, as expected (last 1.5%)
  • Swiss March PPI 0.2% m/m (expected 0.5%; last -0.3%); -2.7% yr/yr (last -2.7%)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: +0.8%
• France's CAC 40: +0.6%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.3%