Stock Market Update

The S&P 500 futures currently trade 32 points above fair value. 

Equity indices it he Asia-Pacific region had a mostly lower finish to the midweek session with South Korea's Kospi (-0.9%) deepening its reversal from a record high. Samsung's union will launch a strike on Thursday, though management is reportedly still looking to avoid that outcome. The People's Bank of China left its one-year and five-year loan prime rates at their respective 3.00% and 3.50%. Japan sold 20-yr JGBs to solid demand and there was a report that a new JGB aimed at retail investors could be launched. The Reserve Bank of New Zealand's mean household inflation expectations for two years out increased to 4.9% from 3.4%.

• In economic data:
  • Japan's May Reuters Tankan Index 8 (prior 7)

---Equity Markets---

• Japan's Nikkei: -1.2%
• Hong Kong's Hang Seng: -0.6%
• China's Shanghai Composite: -0.2%
• India's Sensex: +0.2%
• South Korea's Kospi: -0.9%
• Australia's ASX All Ordinaries: -1.3%

Major European indices trade in the green, encouraged by news that EU trade negotiator Zovko said that a trade deal has been made with the U.S. European Central Bank policymaker Kocher said that a June rate hike is expected if there is no quick end to the Iran conflict. The U.K. is reportedly lobbying supermarkets to introduce price caps on essential times like eggs, bread, and milk.

• In economic data:
  • Eurozone's April CPI 1.0% m/m (expected 1.0%; last 1.3%); 3.0% yr/yr (expected 3.0%; last 2.6%). April Core CPI 0.9% m/m (expected 0.9%; last 0.8%); 2.2% yr/yr (expected 2.2%; last 2.3%)
  • Germany's April PPI 1.2% m/m (expected 2.0%; last 2.5%); 1.7% yr/yr (expected 1.5%; last -0.2%)
  • U.K.'s April CPI 0.7% m/m (expected 0.9%; prior 0.7%); 2.8% yr/yr (expected 3.0%; last 3.3%). April Input PPI 2.4% m/m (expected 1.2%; last 4.3%); 7.7% yr/yr (expected 5.9%; prior 5.3%). April Output PPI 1.4% m/m (expected 1.0%; prior 1.4%); 4.0% yr/yr (expected 2.8%; prior 3.0%)

---Equity Markets---

• STOXX Europe 600: +0.5%
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: +0.5%
• Italy's FTSE MIB: +0.5%
• Spain's IBEX 35: +0.5%