Stock Market Update

The S&P 500 futures currently trade 19 points above fair value.

Equity indices in the Asia-Pacific region had a mostly higher showing on Tuesday. South Korea's exports were up 49.4% through the first 20 days of April with chip exports jumping 182.5%. China Securities Journal noted that measures aimed at stabilizing the stock market have gained traction. Fitch expects China's fiscal deficit to remain at 7.3% of GDP in 2026. New Zealand's CPI remained above target for the second consecutive quarter in the reading for Q1.

• In economic data:
  • New Zealand's Q1 CPI 0.9% qtr/qtr (expected 0.8%; last 0.6%); 3.1% yr/yr (expected 2.9%; last 3.1%). Q1 NZIER Business Confidence -4% (last 48%) and Q1 NZIER Capacity Utilization 91.2% (last 89.8%)

---Equity Markets---

• Japan's Nikkei: +0.9%
• Hong Kong's Hang Seng: +0.5%
• China's Shanghai Composite: +0.1%
• India's Sensex: +1.0%
• South Korea's Kospi: +2.7%
• Australia's ASX All Ordinaries: UNCH

Major European indices trade with modest gains. European Central Bank policymaker Rehn said that there is no set rate path and that the current starting point is "reasonably balanced." Meanwhile, ECB President Lagarde said that the central bank's response will be determined by the duration of the energy shock. French Prime Minister Lecornu is seeking EUR4 bln in spending cuts. Germany's ZEW institute noted that expectations are slipping into negative territory.

• In economic data:
  • Eurozone's April ZEW Economic Sentiment -20.4 (expected -12.7; last -8.5)
  • Germany's April ZEW Economic Sentiment -17.2 (expected -6.7; last -0.5) and ZEW Current Conditions -73.7 (expected -70.0; last -62.9)
  • U.K.'s February three-month employment change 25,000 (last 84,000). February Average Earnings Index + Bonus 3.8% yr/yr (expected 3.6%; last 4.1%). February Unemployment Rate 4.9% (expected 5.2%; last 5.2%) and March Claimant Count change 26,800 (expected 21,400; last 17,100)
  • Spain's February trade deficit EUR3.30 bln (last deficit of EUR4.00 bln)
  • Swiss March trade surplus CHF3.177 bln (last surplus of CHF4.105 bln)

---Equity Markets--- 

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.1%
• U.K.'s FTSE 100:-0.3%
• France's CAC 40: -0.4%
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: +0.3%