Stock Market Update

[BRIEFING.COM] S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: +56.00. The S&P 500 futures currently trade five points below fair value. 

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note with Japan's Nikkei (+0.8%) settling at a fresh record while South Korea's Kospi (+2.6%) recovered the bulk of its loss from yesterday. President Trump is on his way to China with a team of corporate executives, and he will meet with China's leader on Thursday morning local time. South Korea's cabinet is holding an emergency meeting as Samsung Electronics workers threaten an 18-day strike, starting next Thursday if their compensation demands are not met. Australia is cutting taxes for all taxpayers and implementing long-term reforms in its budget for 2026. South Korea's KDI raised its domestic 2026 growth forecast to 2.5% from 1.9% while the inflation outlook was increased to 2.7% from 2.1%. 

• In economic data:
  • Japan's March adjusted Current Account surplus JPY3.90 trln (expected JPY2.95 trln; last JPY2.70 trln). April Bank Lending 5.4% yr/yr (expected 4.6%; last 4.8%) and April Economy Watchers Current Index 40.8 (expected 41.5; last 42.2)
  • South Korea's April Unemployment Rate 2.8% (last 2.7%)
  • Australia's Q1 Wage Price Index 0.8% qtr/qtr, as expected (last 0.8%); 3.3% yr/yr, as expected (last 3.4%). Q1 Home Loans -4.3% qtr/qtr (last 9.4%)
  • New Zealand's Q2 Inflation Expectations 2.5% qtr/qtr (last 2.4%)

---Equity Markets---

• Japan's Nikkei: +0.8%
• Hong Kong's Hang Seng: +0.2%
• China's Shanghai Composite: +0.7%
• India's Sensex: +0.1%
• South Korea's Kospi: +2.6%
• Australia's ASX All Ordinaries: -0.3%

Major European indices trade mixed. Reports from the U.K. indicate that worker unions are now joining the call for the resignation of Prime Minister Starmer after his party was dealt a humiliating defeat in local elections. Merck reported solid Q1 results and raised its outlook while shipper Hapag-Lloyd reported a loss for Q1. European Central Bank policymaker Rehn said that inflation expectations are still anchored while policymaker Villeroy de Galhau said that the ECB must be ready to respond to knock-on effects.

• In economic data:
  • Eurozone's flash Q1 GDP 0.1% qtr/qtr, as expected (last 0.2%); 0.8% yr/yr, as expected (last 1.2%). Q1 Employment Change 0.1% qtr/qtr (expected 0.0%; last 0.2%); 0.5% yr/yr (last 0.7%). March Industrial Production -2.1% yr/yr (expected -1.7%; last -0.8%)
  • Germany's April WPI 2.0% m/m (expected 1.7%; last 2.7%); 6.3% yr/yr (last 4.1%)
  • France's Q1 Unemployment Rate 8.1% (expected 7.8%; last 7.9%). April CPI 1.0% m/m, as expected (last 1.0%); 2.2% yr/yr, as expected (last 1.7%)

---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: unch
• Spain's IBEX 35: -0.5%