Stock Market Update

The S&P 500 futures currently trade 52 points above fair value.

Equity indices in the Asia-Pacific region had a mostly lower showing to end the week with Japan's Nikkei (-1.8%) backing down from record territory. Expectations for an April rate hike from the Bank of Japan have continued receding with the market growing concerned that the lack of a hike could spark a drop in the yen. The People's Bank of China increased the cap on bank lending to offshore entities. Fitch noted that China's credit outlook remains bogged down by weak domestic demand.

• In economic data:
  • Singapore's March trade surplus SGD11.22 bln (last surplus of SGD4.57 bln). March non-oil exports 3.0% m/m (last 3.9%); 15.3% yr/yr (last 4.0%)
  • New Zealand's March Electronic Card Retail Sales 0.7% m/m (last 1.4%); 2.7% yr/yr (last 1.5%). March FPI -0.6% m/m (last -0.1%)

---Equity Markets---

• Japan's Nikkei: -1.8% 
• Hong Kong's Hang Seng: -0.9% 
• China's Shanghai Composite: -0.1% 
• India's Sensex: +0.7%
• South Korea's Kospi: -0.6%
• Australia's ASX All Ordinaries: -0.1%

Major European indices are seeking a mostly higher finish to the week. French train manufacturer Alstom has fallen about 30% after withdrawing its free cash flow guidance. European Central Bank policymaker Muller said that it should not be assumed that the energy shock will be temporary, adding that he is not ruling out a rate hike this month.

• In economic data:
  • Eurozone's February trade surplus EUR11.5 bln (expected surplus of EUR11.7 bln; last deficit of EUR1.0 bln). February Current Account surplus EUR24.9 bln (expected surplus of EUR29.8 bln; last surplus of EUR40.4 bln)
  • Italy's February trade surplus EUR4.944 bln (expected surplus of EUR3.83 bln; last surplus of EUR1.13 bln)

---Equity Markets---

• STOXX Europe 600: +1.2% 
• Germany's DAX: +1.9% 
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +1.6% 
• Italy's FTSE MIB: +1.6% 
• Spain's IBEX 35: +1.4%