Stock Market Update

The S&P 500 futures currently trade 101 points below fair value. 

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note amid renewed concerns about the Iran conflict dragging on after President Trump's address to the Nation. Japan sold 10-yr JGBs to weak demand, sending the 10-yr yield to a level not seen in more than 20 years. Foreign investors sold Japanese equities and JGBs aggressively into Japan's fiscal year end. China will increase its reserves of frozen pork after hog prices reached an eight-year low. China Securities Journal noted that the issuance of yuan-denominated bonds by foreign entities doubled in Q1.

• In economic data:
  • Japan's March Monetary Base -11.6% yr/yr (expected -10.8%; last -10.6%)
  • South Korea's March CPI 0.3% m/m (expected 0.6%; last 0.3%); 2.2% yr/yr (expected 2.4%; last 2.0%)
  • Australia's February trade surplus AUD5.69 bln (expected surplus of AUD2.81 bln; last surplus of AUD2.26 bln). February Imports -3.2% m/m (last 1.0%) and Exports 4.9% m/m (last -1.6%)
  • India's March Manufacturing PMI 53.9 (expected 53.8; last 56.9)

---Equity Markets---

• Japan's Nikkei: -2.4%
• Hong Kong's Hang Seng: -0.7%
• China's Shanghai Composite: -0.7%
• India's Sensex: +0.3%
• South Korea's Kospi: -4.5%
• Australia's ASX All Ordinaries: -1.3%

Major European indices trade in the red, reflecting some persisting worries about the trajectory and duration of the Iran conflict ahead of a four-day Easter weekend that will keep the region's major markets closed through Monday. Bank of England Governor Bailey cautioned against pricing in rate hikes while the European Central Bank is expected to hike rates a couple times, creating a divergence in the region's rate expectations.

• In economic data:
  • France's February government budget deficit EUR32.1 bln (last deficit of EUR9.7 bln)
  • Italy's February Retail Sales 0.0% m/m (expected 0.3%; last 0.6%); 1.6% yr/yr (last 2.5%)
  • Swiss March CPI 0.2% m/m (expected 0.5%; last 0.6%); 0.3% yr/yr (expected 0.5%; last 0.1%)

---Equity Markets---

• STOXX Europe 600: -1.4% 
• Germany's DAX: -2.2%
• U.K.'s FTSE 100: -0.5% 
• France's CAC 40: -1.3% 
• Italy's FTSE MIB: -1.8% 
• Spain's IBEX 35: -1.8%