Stock Market Update

The S&P 500 futures currently trade 178 points above fair value.

Equity indices in the Asia-Pacific region ended the midweek session on a broadly higher note, encouraged by President Trump delaying the deadline for strikes on Iran's infrastructure due to progress in talks. Japan's cash earnings for February grew at their fastest pace since September while real cash earnings increased for the second month in a row. Japan's Finance Minister Katayama said that it is still uncertain if an extra budget will be needed. The Reserve Bank of India left its policy rate at 5.25%, as expected, while the Reserve Bank of New Zealand left its official cash rate at 2.25%, which was also expected, though RBNZ policymakers discussed a rate hike.

• In economic data:
  • Japan's February Average Cash Earnings 3.3% yr/yr (expected 2.7%; last 2.5%) and Overall Wage Income 3.3% yr/yr (expected 2.7%; last 2.5%). February Current Account surplus JPY2.71 trln (expected surplus of JPY2.40 trln; last surplus of JPY3.13 trln). March Economy Watchers Current Index 42.2 (expected 48.0; last 48.9)
  • South Korea's February Current Account surplus $23.19 bln (last surplus of $13.26 bln)
  • Hong Kong's March Manufacturing PMI 49.3 (last 53.3)

---Equity Markets---

• Japan's Nikkei: +5.4%
• Hong Kong's Hang Seng: +3.1%
• China's Shanghai Composite: +2.7%
• India's Sensex: +4.0%
• South Korea's Kospi: +6.9%
• Australia's ASX All Ordinaries: +2.7%

Major European indices trade with solid gains alongside a drop in energy prices after President Trump agreed to a two-week ceasefire with Iran. Sovereign debt also trades broadly higher with Germany's 10-yr yield falling 15 basis points to a three-week low of 2.93% while Italy's 10-yr yield is down 23 basis points to 3.69%, which also marks a three-week low. Germany reported weak Factory Orders growth for February (0.9%; expected 3.0%), making for just a small rebound from a sharp drop in January (-11.1%).

• In economic data:
  • Eurozone's February Retail Sales -0.2% m/m, as expected (last 0.0%); 1.7% yr/yr (expected 1.6%; last 2.1%). February PPI -0.7% m/m (expected -0.6%: last 0.8%); -3.0% yr/yr, as expected (last -2.0%)
  • Germany's February Factory Orders 0.9% m/m (expected 3.0%; last -11.1%)
  • U.K.'s March Halifax House Price Index -0.5% m/m (expected 0.2%; last 0.3%); 0.8% yr/yr (expected 1.5%; last 1.2%)
  • France's February trade deficit EUR5.8 bln (expected deficit of EUR2.4 bln; last deficit of EUR2.0 bln)
  • Swiss March Unemployment Rate 3.0%, as expected (last 3.0%)

---Equity Markets---

• STOXX Europe 600: +4.4%
• Germany's DAX: +5.2%
• U.K.'s FTSE 100: +3.0%
• France's CAC 40: +4.9%
• Italy's FTSE MIB: +4.2%
• Spain's IBEX 35: +4.5%