Stock Market Update

The S&P 500 futures currently trade 56 points above fair value. 

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note, taking a step back after their strong showing on Monday, which followed news that the U.S. and Iran reportedly made significant progress on a deal. The situation was muddled a bit overnight after U.S. forces conducted strikes that were described as defensive. South Korea's Kospi (+2.6%) bucked the trend, rising to a fresh record high after being closed yesterday. Taiwan's equity market overtook India's as the fifth largest in the world, thanks to support from Taiwan Semiconductor Manufacturing. Japan's Prime Minister Takaichi confirmed plans for a JPY3 trln extra budget. Sri Lanka's central bank raised its policy rate by a 100 basis points to 8.75% due to hot inflation.

• In economic data:
  • Japan's March BoJ Core CPI 2.8% yr/yr (expected 1.7%; last 2.5%). March Leading Index 114.0 (expected 114.5; last 113.2) and Coincident Indicator 0.2% m/m (expected 0.3%; last -1.7%)
  • Singapore's April Industrial Production 5.8% m/m (expected 1.5%; last 3.5%); 17.6% yr/yr (expected 12.0%; last 9.2%)

---Equity Markets---

• Japan's Nikkei: -0.3%
• Hong Kong's Hang Seng: UNCH
• China's Shanghai Composite: -0.2%
• India's Sensex: -0.6%
• South Korea's Kospi: +2.6%
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade on a mostly lower note while the U.K.'s FTSE (+0.6%) outperforms after being closed for Spring Bank Holiday yesterday. European Central Bank policymaker Villeroy de Galhau said that second-round effects of inflation have not appeared yet while policymaker Schnabel said that a rate hike should be made in June. The U.K. is reportedly looking to join EU's EUR4 bln investment fund for startups.

• In economic data:
  • U.K.'s May CBI Distributive Trades Survey -46 (expected -52; last -68)
  • Spain's April PPI 8.3% yr/yr (last 3.4%)

---Equity Markets---

• STOXX Europe 600: -0.2%
• Germany's DAX: -0.5%
• U.K.'s FTSE 100: +0.6%
• France's CAC 40: -0.7%
• Italy's FTSE MIB: unch
• Spain's IBEX 35: +0.1%