Stock Market Update

The S&P 500 futures trade 46 points above fair value.

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. South Korea's March PPI increased at its fastest year-over-year pace in three years. Japan's March trade surplus was smaller than expected due to a big jump in imports, including a 13.9% yr/yr increase in LNG imports. Expectations for a May rate hike from the Reserve Bank of New Zealand increased to about 50% after yesterday's release of the second consecutive above-target CPI reading.

• In economic data:
  • Japan's March trade surplus JPY90 bln (expected surplus of JPY230 bln; last deficit of JPY370 bln). March Imports 10.9% yr/yr (expected 7.1%; last 10.3%) and Exports 11.7% yr/yr (expected 11.0%; last 4.0%)
  • South Korea's March PPI 1.6% m/m (last 0.6%); 4.1% yr/yr (last 2.5%)
  • Australia's March MI Leading Index -0.1% m/m (last -0.1%)

---Equity Markets---

• Japan's Nikkei: +0.4%
• Hong Kong's Hang Seng: -1.2%
• China's Shanghai Composite: +0.5%
• India's Sensex: -1.0%
• South Korea's Kospi: +0.5%
• Australia's ASX All Ordinaries: -1.1%

Major European indices trade near their flat lines with some renewed concerns about the U.S.-Iran conflict after Vice President Vance's trip to Pakistan was called off. However, President Trump said that the ceasefire will be extended. Travel operator TUI lowered its guidance due to increased energy prices and war-related uncertainty. Lufthansa is scrapping about 20,000 short-haul flights through October due to a tight supply of jet fuel.

• In economic data:
  • Eurozone's 2025 debt-to-GDP ratio 87.8% (prior 87.0%) and 2025 budget-to-GDP ratio -2.9% (last -3.0%)
  • U.K.'s March CPI 0.7% m/m (expected 0.6%; last 0.4%); 3.3% yr/yr, as expected (last 3.0%). March Input PPI 4.4% m/m (expected 2.8%; last 0.9%); 5.4% yr/yr (last 0.7%) and Output PPI 0.9% m/m (expected 1.0%; last -0.5%); 2.6% yr/yr (last 1.8%). March Core CPI 0.4% m/m (expected 0.5%; last 0.6%); 3.1% yr/yr (expected 3.2%; last 3.2%)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -0.3%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.4%
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: -0.5%