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25/01/22 Briefing

The equity index futures market is facing renewed selling pressure, even though most companies that reported earnings since yesterday's close beat expectations. The S&P 500 futures trade 50 points, or 1.1%, below fair value after completing a huge comeback yesterday.

Dow components Johnson & Johnson (JNJ 160.00, -2.97, -1.8%), IBM (IBM 131.00, +2.18, +1.7%), American Express (AXP 160.00, +1.07, +0.7%), Verizon (VZ 53.25, +0.29, +0.6%), and 3M (MMM 176.00, +3.20, +1.9%) are among those companies with encouraging earnings results, although J&J did miss revenue estimates.

Note, IBM's software segment guidance was a bit underwhelming, which could be weighing on Microsoft (MSFT 292.08, -4.29, -1.5%) ahead of its earnings report after today's close. Staying in the technology space, NVIDIA (NVDA 224.10, -9.62, -4.1%) is reportedly getting ready to end plans for its $40 billion acquisition of Arm Holdings due to regulatory pressure.

Separately, investors' expectations for a more hawkish Fed (to rein in inflation pressures) are playing out in the Treasury market as the FOMC prepares for its two-day policy meeting today. U.S. Treasury yields across the curve are trading higher on renewed selling interest.

The 2-yr yield is up four basis points to 1.01%, and the 10-yr yield is up four basis points to 1.78%. The U.S. Dollar Index is up 0.3% to 96.23. WTI crude futures are trading little changed at $83.28/bbl. The CBOE Volatility Index is up 10.5% to 33.04 amid increased hedging interest.

On the data front, investors will receive the S&P Case-Shiller Home Price Index for November and the FHFA Housing Price Index for November at 9:00 a.m. ET, followed by the Conference Board's Consumer Confidence Index for January (Briefing.comconsensus 112.0) at 10:00 a.m. ET.

In U.S. Corporate news:

  • Johnson & Johnson (JNJ 160.00, -2.97): -1.8% despite beating EPS estimates on below-consensus revenue and guiding FY22 EPS and revenue above consensus.

  • IBM (IBM 131.00, +2.18): +1.7% after beating top and bottom-line estimates, although the company expects software segment growth to be at the low end of the mid-single-digits.

  • American Express (AXP 160.00, +1.07): +0.7% after posting better than expected Q4 results, guiding revenue above consensus, and announcing plans to increase its dividend by approximately 20%.

  • Verizon (VZ 53.25, +0.29): +0.6% after beating EPS estimates and guiding FY22 EPS above consensus.

  • 3M (MMM 176.00, +3.20): +1.9% after beating EPS estimates.

  • NVIDIA (NVDA 224.10, -9.62): -4.1% amid a report from Bloomberg indicating that the company is getting ready to end plans for its acquisition of Arm Holdings.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: -1.7% Hong Kong's Hang Seng: -1.7% China's Shanghai Composite: -2.6% India's Sensex: +0.6% South Korea's Kospi: -2.6% Australia's ASX All Ordinaries: -2.6%.

  • In economic data:

  • Japan's December BoJ Core CPI 0.9% yr/yr (expected 0.7%; last 0.8%)

  • South Korea's Q4 GDP 1.1% qtr/qtr (expected 0.9%; last 0.3%); 4.1% yr/yr (expected 3.7%; last 4.0%)

  • Australia's Q4 CPI 1.3% qtr/qtr (expected 1.0%; last 0.8%); 3.5% yr/yr (expected 3.2%; last 3.0%). December NAB Business Survey 8 (last 12) and NAB Business Confidence -12 (last 12)


  • In news:

  • Bank of Japan Governor Kuroda said that rising commodity prices have been the main factor in rising inflation.

  • South Korea's Q4 GDP expanded at its fastest yr/yr pace in eleven years.

  • The Monetary Authority of Singapore tightened its policy and is expected to repeat the move in April.

  • Japan's chief cabinet secretary said that the government expects companies to raise wages in the spring.



  • Major European indices trade in the green but below their highs. STOXX Europe 600: +0.5% Germany's DAX: +0.5% U.K.'s FTSE 100: +0.8% France's CAC 40: +0.7% Italy's FTSE MIB: +0.1% Spain's IBEX 35: +0.6%.

  • In economic data:

  • Germany's January ifo Business Climate Index 95.7 (expected 94.7; last 94.8). January Current Assessment 96.1 (expected 96.3; last 96.9) and Business Expectations 95.2 (expected 93.0; last 92.7)

  • U.K.'s December Public Sector net borrowing GBP16.10 bln (expected GBP15.22 bln; last GBP14.00 bln) and January CBI Industrial Trends Orders 24 (expected 22; last 24)

  • Spain's December PPI 35.9% yr/yr (last 32.2%)


  • In news:

  • Germany's ifo Business Climate Index increased for the first time since June in the January reading. Economists from the ifo Institute observed a slight easing of supply shortages but added that it was too early to talk about a turnaround.

  • The Italian parliament will continue voting for president after the first round did not produce a winner.

  • The process is reportedly expected to take until Thursday. Deutsche Bank expects that the European Central Bank will begin raising rates in December.



U.S. equity futures:

  • S&P 500 Futures: -58 @ 4,352

  • DJIA Futures: -234 @ 34,131

  • Nasdaq 100 Futures: -281 @ 14,229

Overseas:

  • Europe: DAX +0.5%, FTSE +0.8%, CAC +0.7%

  • Asia: Nikkei -1.7%, Hang Seng -1.7%, Shanghai Composite -2.6%

Commodities:

  • Crude Oil -0.01 @ 83.30

  • Nat Gas -0.046 @ 3.829

  • Gold -2.10 @ 1839.60

  • Silver -0.075 @ 23.725

  • Copper -0.0070 @ 4.4055

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

  • 3M (MMM) beats by $0.29, reports revs in-line

  • Allscripts Healthcare (MDRX) issues upside Q4 revenue guidance, also approves new $250 mln share repurchase program

  • American Express (AXP) reports Q4 (Dec) results, beats on revs; guides FY22 EPS below consensus, revs above consensus; plans dividend increase

  • Archer-Daniels (ADM) beats by $0.14, beats on revs; co also increases dividend by 8.1%

  • Atlantic Union Bankshares (AUB) beats by $0.01, net interest income roughly flat vs. Q3

  • Banc of California (BANC) misses by $0.26, misses on revs

  • Brown & Brown (BRO) beats by $0.03, beats on revs

  • Commvault Systems (CVLT) beats by $0.02, beats on revs

  • Crane (CR) beats by $0.13, beats on revs; guides FY22 EPS in-line, revs below consensus, increases dividend to $0.47/share from $0.43/share

  • CrossFirst Bankshares (CFB) reports Q4 EPS of $0.40 vs. the $0.33 consensus estimate; net interest income increased 5% yr/yr to $43.4 mln

  • Customers Bancorp (CUBI) beats by $0.05, beats on revs

  • Equinox Gold (EQX) Provides 2022 Guidance: Production Increasing to 625,000 to 710,000 Ounces of Gold

  • Equity Lifestyle Properties (ELS) beats by $0.02, beats on revs; guides Q1 FFO in-line; guides FY22 FFO in-line; also increases annual dividend rate

  • Ericsson (ERIC) beats by SEK0.87, beats on revs

  • General Electric (GE) beats by $0.10, misses on revs; guides FY22 EPS below consensus

  • Genmab (GMAB) reports 2021 total net sales of DARZALEX of $6.023 bln

  • Hope Bancorp (HOPE) beats by $0.02, beats on revs; authorizes new $50 mln stock repurchase program

  • IBM (IBM) beats by $0.06, beats on revs, expects mid-single-digit revenue growth in FY22

  • Independent Bank Group (IBTX) beats by $0.03, reports revs in-line

  • Inter Parfums (IPAR) raises Q4 revenue guidance; guides FY22 earnings and revs above consensus

  • Invesco (IVZ) beats by $0.10, beats on revs

  • Johnson & Johnson (JNJ) beats by $0.01, misses on revs; guides FY22 EPS above consensus, revs above consensus

  • Lockheed Martin (LMT) beats by $0.33, reports revs in-line; guides FY22 EPS in-line, revs in-line; also provides update on pending acquisition of AJRD

  • Logitech Int'l SA (LOGI) beats by $0.49, beats on revs; raises guides FY22 revs guidance

  • NextEra Energy (NEE) beats by $0.01, misses on revs; guides FY22 EPS above consensus

  • NextEra Energy Partners (NEP) reports Q4 (Dec) results, misses on revs

  • Polaris Industries (PII) beats by $0.13, beats on revs; guides FY22 EPS above consensus, revs above consensus

  • Raytheon Technologies (RTX) beats by $0.06, misses on revs; guides FY22 EPS below consensus, revs below consensus

  • Sasol (SSL) reports H1 production metrics and provides FY22 outlook

  • SmileDirectClub (SDC) reaffirms FY21 revenue guidance; announces series of strategic actions, including reduction of workforce

  • South State (SSB) beats by $0.07, beats on revs

  • Steel Dynamics (STLD) beats by $0.07, reports revs in-line; expects domestic steel consumption to further increase in 2022

  • United Micro (UMC) beats by NT$0.08, beats on revs

  • Verizon (VZ) beats by $0.03, reports revs in-line; guides FY22 EPS above consensus

  • West Pharm (WST) announced an exclusive supply and technology agreement with Corning (GLW)

  • WSFS Financial (WSFS) reports Q4 (Dec) results, misses on revs

  • Xerox (XRX) beats by $0.04, misses on revs; guides FY22 revs above consensus


  • General News:

  • There are still diplomatic options remaining in Russia/Ukraine conflict as NATO prepares to respond to Russia's demands, according to the New York Times

  • White House provides readout of President Biden's video call with European Leaders on Russia and Ukraine

  • State judge rules that New York mask mandate is unconstitutional, according to Bloomberg

  • USDOT announces rule to help department move more swiftly to protect aviation consumers from "unfair and deceptive practices"

  • Acadia Realty Trust (AKR) announces resignation of COO Christopher Conlon, effective in February

  • Amazon (AMZN) aiming to open new Amazon Go stores in suburban locations, according to USA Today

  • Apollo Global Management (APO) executive tensions are continuing, according to the Wall Street Journal

  • Argan (AGX) increases existing share repurchase program to $50 mln from $25 mln

  • Barrick (GOLD) reports Tanzania mines advancing to Tier One status

  • BioNTech (BNTX) and Pfizer (PFE) announces the initiation of a clinical study to evaluate the safety, tolerability and immunogenicity of an Omicron-based vaccine candidate in healthy adults 18 through 55 years of age

  • Capital Product Partners (CPLP) increases quarterly cash distribution to $0.15/unit from $0.10/unit

  • Checkpoint Therapeutics (CKPT) announces "positive" topline results from its registration-enabling clinical trial evaluating the safety and efficacy of its anti-PD-L1 antibody, cosibelimab, administered as a fixed dose of 800 mg every two weeks in patients with metastatic cutaneous squamous cell carcinoma

  • Chesapeake Energy (CHK) appoints Josh Viets as COO

  • ChromaDex (CDXC) Announces Results of New Pilot Clinical Trial Showing Anti-Inflammatory Effects of Nicotinamide Riboside (NR) Supplementation

  • Credit Suisse (CS) to be negatively impacted by litigation provisions in Q4

  • CSX (CSX) appoints Sean R. Pelkey as CFO, effective immediately

  • Deciphera Pharmaceuticals (DCPH) Presents Results from the INTRIGUE Phase 3 Clinical Study at the American Society of Clinical Oncology Plenary Series Session

  • eFFECTOR Therapeutics (EFTR) provides pipeline updates; establishes investment agreement with Lincoln Park Capital

  • FormFactor (FORM) announced new cryogenic test service business model

  • Hydrofarm Holdings (HYFM) enters into strategic agreement with AXEON Water Technologies

  • ICF International (ICFI) to appoint Barry Broadus as CFO, effective February 28, 2022

  • Intersect ENT (XENT) announces "positive" results of an observational, cohort study using real-world evidence data from adult patients with chronic rhinosinusitis with or without nasal polyps who underwent endoscopic sinus surgery

  • Johnson & Johnson's (JNJ) Janssen Pharmaceutical announces conclusions from Network Meta-Analysis comparing TREMFYA to advanced therapies approved for PsA

  • Luxfer (LXFR) CFO Heather Harding to retire; Steve Webster promoted to CFO, effective March 1; he has been Corporate Controller for the last six years

  • Meta Platforms (FB) provides details on implementation of new financial reporting structure

  • Nevro (NVRO) responds to Medtronic's (MDT) announcement of FDA approval for painful diabetic neuropathy

  • New Pacific Metals (NEWP) appoints Dr. Rui Feng as CEO

  • PG&E (PCG) proposes nine new battery energy storage projects totaling approx. 1,600 MW

  • Regeneron Pharma (REGN): FDA limits use of certain monoclonal antibodies to treat COVID-19 due to the omicron variant

  • Roche Hldg (RHHBY) receives Priority Review from FDA for Genentech's Evrysdi

  • SAP SE (SAP) and Icertis expand their partnership for enhanced contract management

  • Shutterstock (SSTK) increases quarterly dividend to $0.24 per share from $0.21 per share

  • Sierra Oncology (SRRA) announces that momelotinib achieved "statistically significant" efficacy across key endpoints; also updates on the financial support for momelotinib

  • SilverCrest Metals' (SILV) Las Chispas Construction Update - Tracking Ahead of Schedule and On Budget

  • Sonoco Products (SON) will increase the price for all paperboard tubes and cores by at least 6%, effective on or after March 1

  • TechnipFMC (FTI) awarded EPCI contract from Petrobras (PBR) for Bzios 6 Field

  • Victoria's Secret (VSCO) announces a partnership agreement with Regina Miracle International related to its existing company-owned business in China

  • Vistra Energy (VST) confirms planned expansion of Moss Landing Energy Storage Facility

  • Walmart (WMT) Mexico unit is considering strategic alternatives to its operations in Central America, according to Reuters citing company

  • Zions Bancorp (ZION) beats by $0.02, beats on revs


  • M&A:

  • Aerojet Rocketdyne (AJRD) provides update on proposed merger transaction with Lockheed Martin (LMT)

  • JPMorgan Chase (JPM) acquires stake in Viva Wallet

  • Nvidia (NVDA) is getting ready to end plans for Arm (SFTBY) takeover, according to Bloomberg

  • Sports Ventures Acquisition Corp. (AKIC) announces agreement to combine with DNEG

  • Verisk Analytics (VRSK) enters definitive agreement to sell its 3E business to New Mountain Capital for up to $950 mln

  • Vocera (VCRA): Stryker (SYK) commences tender offer for all outstanding shares of common stock of Vocera Communications for $79.25 per share in cash pursuant to Jan 6 merger agreement


  • Syndicate:

  • Beyond Air (XAIR) files for $200 mln mixed securities shelf offering

  • Heliogen (HLGN) files for 8,566,666 share common stock offering related to warrants; also files for 124,749,204 share common stock offering by selling shareholders

  • Innovative Industrial Properties (IIPR) files mixed securities shelf offering

  • lululemon athletica (LULU) files for 5,203,012 share common stock offering


  • IPOs:

  • Expected to Price:

  • Credo (Nasdaq: CRDO): The semiconductor company providing secure, high-speed connectivity solutions that deliver improved power and cost efficiency is expected to price its 25.0 M share IPO between $10-$12.



Gapping Up/Down

  • Gapping up:

  • LOGI +8.1%, SDC +8%, ERIC +6.3%, BRO +6%, HLGN+5.3%, CFB +4.8%, IBTX +4.5%, CPLP +2.9%, IBM+2.9%, SON +2.2%, IPAR +2.1%, MDRX +1.8%, CUBI+1.8%, VST +1.5%


  • Gapping down:

  • CS -3.7%, PETS -2.6%, FTI -2.2%, FB -1.6%, STLD-1.6%, NEWP -1.5%, VRSK -1.2%, LULU -0.5%, WMT-0.5%, ELS -0.5%, UMC -0.5%


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • Allscripts Healthcare (MDRX) upgraded to Outperform from Mkt Perform at SVB Leerink

  • Blueprint Medicines (BPMC) upgraded to Buy from Hold at Stifel; tgt lowered to $95

  • Brown-Forman (BF.B) upgraded to Buy from Hold at Berenberg; tgt raised to $76.10

  • Chuy's (CHUY) upgraded to Buy from Hold at The Benchmark Company; tgt $35

  • Cognex (CGNX) upgraded to Buy from Neutral at Daiwa Securities; tgt lowered to $75

  • Confluent (CFLT) upgraded to Buy from Neutral at DA Davidson; tgt $76

  • Datto Holding (MSP) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $36

  • Despegar.com(DESP) upgraded to Buy from Neutral at Citigroup; tgt $15

  • New Relic (NEWR) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $150

  • NIKE (NKE) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $175

  • NiSource (NI) upgraded to Outperform from In-line at Evercore ISI; tgt $30

  • PBF Energy (PBF) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $21

  • Plains All American (PAA) upgraded to Outperform from Mkt Perform at Bernstein; tgt $14.50

  • Plains GP (PAGP) upgraded to Outperform from Mkt Perform at Bernstein; tgt $14.50

  • Public Service (PEG) upgraded to Outperform from In-line at Evercore ISI; tgt $71

  • SmileDirectClub (SDC) upgraded to Hold from Sell at Craig Hallum

  • Snowflake (SNOW) upgraded to Buy from Hold at Loop Capital; tgt $370

  • Southern (SO) upgraded to In-line from Underperform at Evercore ISI; tgt $66

  • Turquoise Hill Resources (TRQ) upgraded to Buy from Neutral at Eight Capital

  • Turquoise Hill Resources (TRQ) upgraded to Speculative Buy from Hold at TD Securities

  • ViacomCBS (VIAC) upgraded to Sector Weight from Underweight at KeyBanc Capital Markets


  • Downgrades:

  • American Airlines (AAL) downgraded to Neutral from Buy at Redburn

  • Anaplan (PLAN) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

  • BlackLine (BL) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

  • Canadian Natrl Res (CNQ) downgraded to Neutral from Buy at Goldman; tgt lowered to $54

  • Citrix Systems (CTXS) downgraded to Sell from Neutral at Citigroup; tgt lowered to $85

  • Evergy (EVRG) downgraded to In-line from Outperform at Evercore ISI

  • Intuitive Surgical (ISRG) downgraded to Neutral from Buy at Redburn

  • Kroger (KR) downgraded to Underweight from Equal Weight at Wells Fargo; tgt $42

  • Marathon Petroleum (MPC) downgraded to Neutral from Overweight at Piper Sandler; tgt $76

  • Novo Nordisk A/S (NVO) downgraded to Sell from Hold at Liberum

  • OGE Energy (OGE) downgraded to In-line from Outperform at Evercore ISI; tgt $39

  • Q2 Holdings (QTWO) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

  • Sierra Bancorp (BSRR) downgraded to Neutral from Buy at Janney

  • VMware (VMW) downgraded to Neutral from Buy at Citigroup; tgt lowered to $140


  • Others:

  • Atlassian (TEAM) assumed with a Buy at Citigroup; tgt lowered to $430

  • Camtek (CAMT) initiated with a Buy at BofA Securities; tgt $43

  • Check Point Software (CHKP) initiated with a Sell at Citigroup; tgt $115

  • Cloudflare (NET) initiated with a Neutral at Citigroup; tgt $100

  • CrowdStrike (CRWD) initiated with a Buy at Citigroup; tgt $220

  • CyberArk (CYBR) initiated with a Buy at Citigroup; tgt $180

  • Datadog (DDOG) assumed with a Buy at Citigroup; tgt lowered to $180

  • Dominion Energy (D) resumed with an Equal Weight at Barclays; tgt $86

  • Dynatrace (DT) assumed with a Buy at Citigroup; tgt lowered to $70

  • Evergy (EVRG) downgraded to In-line from Outperform at Evercore ISI

  • Fastly (FSLY) assumed with a Sell at Citigroup; tgt lowered to $25

  • Fortinet (FTNT) initiated with a Buy at Citigroup; tgt $390

  • KnowBe4 (KNBE) assumed with a Neutral at Citigroup; tgt lowered to $25

  • Okta (OKTA) initiated with a Neutral at Citigroup; tgt $215

  • Palo Alto Networks (PANW) initiated with a Buy at Citigroup; tgt $585

  • Rapid7 (RPD) initiated with a Neutral at Citigroup; tgt $105

  • Saia (SAIA) initiated with a Neutral at Citigroup; tgt $320

  • SailPoint (SAIL) initiated with a Sell at Citigroup; tgt $35

  • SentinelOne (S) initiated with a Neutral at Citigroup; tgt $42

  • Sociedad Quimica y Minera (SQM) initiated with a Buy at Loop Capital; tgt $102

  • Splunk (SPLK) assumed with a Neutral at Citigroup; tgt raised to $120

  • Twilio (TWLO) initiated with an Overweight at Atlantic Equities; tgt $240

  • Varonis Systems (VRNS) initiated with a Buy at Citigroup; tgt $47

  • Zscaler (ZS) initiated with a Buy at Citigroup; tgt $310


ZUpcoming Events:

  • Econ Data:

  • 09:00 ET: FHFA Housing Price Index for Nov (Briefing.comConsensus NA; Prior 1.1%)

  • 09:00 ET: S&P Case-Shiller Home Price Index for Nov (Briefing.comConsensus NA; Prior 18.4%)

  • 10:00 ET: Consumer Confidence for Jan (Briefing.comConsensus 112.0; Prior 115.8)


  • Earnings:

  • Monday (Jan 24)

  • Morning: BOH CBU HAL PHG

  • Afternoon: BRO CR ELS HOPE IBM IBTX LOGI SSB STLD WSFS ZION


  • Tuesday (Jan 25)

  • Morning: MMM AXP ADM AUB BANC CVLT ERIC GATX GE IVZ JNJ LKFN LMT NEE NEP PCAR PII RTX UMC VZ XRX

  • Afternoon: AGYS BXP CADE CNI COF FFIV FCF HA MRTN MSFT NAVI NXGN RNR RNST SLGN LRN TXN TRMK UMBF VBTX WSBC


  • Wednesday (Jan 26)

  • Morning: ABT APH ANTM T ADP BA GLW FBP FBC FCX GD HES KMB KNX MKTX MNRO NDAQ NYCB NSC OSK PGR PB ROL RES SF TEL

  • Afternoon: AMP AZPN AVT AXS CACI CALX CLS CNS CNMD CCI CVBF DRE EW FLEX HXL INTC ISBC LRCX LSTR LVS LC LEVI MTH CASH MEOH MKSI PKG PLXS PTC XM RJF RLI SLM STX SEIC NOW SIMO SLG TER TSLA URI VRTX WHR WOLF XLNX


  • Thursday (Jan 27)

  • Morning: FLWS AOS ALK ADS MO AIT BLL BX BC CNX CMCO CMCSA CFR DHR DOV DOW EXP EWBC EXTR HCA IP JBLU KEX MTSI HZO MMC MA MKC MCD MSCI MUR NTCT NOC NUE OSIS BPOP ROK RCI SAP SHW SFNC LUV STM TROW TDY TXT TSCO VLO VLY XEL

  • Afternoon: ABCB AAPL AJG TEAM AX BZH BOOT CP CATY CE EMN ETD FICO FHI FFBC FIBK GBCI HTH JNPR KLAC MITK MDLZ NATI OLN RMD RHI HOOD SYK X V WRB WAL WDC


  • Friday (Jan 28)

  • Morning: ALV BMI BAH CAT CHTR CVX CHD CL GNTX LYB MOG.A PSX PFS SBSI SYF VFC WY WETF




Asia & Europe detail:

Asia: Nikkei -1.7%, Hang Seng -1.7%, Shanghai Composite -2.6%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Bank of Japan Governor Kuroda said that rising commodity prices have been the main factor in rising inflation. South Korea's Q4 GDP expanded at its fastest yr/yr pace in eleven years. The Monetary Authority of Singapore tightened its policy and is expected to repeat the move in April. Japan's chief cabinet secretary said that the government expects companies to raise wages in the spring.

  • In economic data:

  • Japan's December BoJ Core CPI 0.9% yr/yr (expected 0.7%; last 0.8%)

  • South Korea's Q4 GDP 1.1% qtr/qtr (expected 0.9%; last 0.3%); 4.1% yr/yr (expected 3.7%; last 4.0%)

  • Australia's Q4 CPI 1.3% qtr/qtr (expected 1.0%; last 0.8%); 3.5% yr/yr (expected 3.2%; last 3.0%). December NAB Business Survey 8 (last 12) and NAB Business Confidence -12 (last 12)


---Equity Markets---

  • Japan's Nikkei: -1.7%

  • Hong Kong's Hang Seng: -1.7%

  • China's Shanghai Composite: -2.6%

  • India's Sensex: +0.6%

  • South Korea's Kospi: -2.6%

  • Australia's ASX All Ordinaries: -2.6%

---FX---

  • USD/JPY: +0.1% to 114.02

  • USD/CNH: +0.1% to 6.3348

  • USD/INR: +0.2% to 74.76

Europe: DAX +0.5%, FTSE +0.8%, CAC +0.7%

Major European indices trade in the green but below their highs. Germany's ifo Business Climate Index increased for the first time since June in the January reading. Economists from the ifo Institute observed a slight easing of supply shortages but added that it was too early to talk about a turnaround. The Italian parliament will continue voting for president after the first round did not produce a winner. The process is reportedly expected to take until Thursday. Deutsche Bank expects that the European Central Bank will begin raising rates in December.

  • In economic data:

  • Germany's January ifo Business Climate Index 95.7 (expected 94.7; last 94.8). January Current Assessment 96.1 (expected 96.3; last 96.9) and Business Expectations 95.2 (expected 93.0; last 92.7)

  • U.K.'s December Public Sector net borrowing GBP16.10 bln (expected GBP15.22 bln; last GBP14.00 bln) and January CBI Industrial Trends Orders 24 (expected 22; last 24)

  • Spain's December PPI 35.9% yr/yr (last 32.2%)


---Equity Markets---

  • STOXX Europe 600: +0.5%

  • Germany's DAX: +0.5%

  • U.K.'s FTSE 100: +0.8%

  • France's CAC 40: +0.7%

  • Italy's FTSE MIB: +0.1%

  • Spain's IBEX 35: +0.6%

---FX---

  • EUR/USD: -0.5% to 1.1273

  • GBP/USD: -0.3% to 1.3441

  • USD/CHF: +0.8% to 0.9199





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