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27/01/23 Briefing


The S&P 500 futures are down 14 points and are trading % below fair value. The Nasdaq 100 futures are down 71 points and are trading 0.6% below fair value. The Dow Jones Industrial Average futures are down 17 points and are trading slightly below fair value.

Equity futures are mixed and little changed this morning. The hesitation is likely due to a nagging sense that the market is due for a pullback and a wait and see perspective in front of the December Personal Income and Spending report at 8:30 a.m. ET, which includes the Fed preferred inflation gauge in the form of the core-PCE Price Index. Also, a pronounced disappointment from Intel (INTC), along with disappointing guidance from KLA Corp. (KLAC), has reined in some of the enthusiasm for semis and other tech stocks. 

Hasbro's (HAS) earnings report, meanwhile, has offered another indication that the economy is in a weaker state after the company highlighted softening consumer demand and announced it will cut approximately 15% of its workforce.

A 5.0% gain in American Express (AXP), though, after the company issued above-consensus FY23 guidance, has helped offset some of the fallout from other earnings disappointments. 

Separately, House Republicans are considering a short term extension of the debt limit until September 30, according to Bloomberg.

In corporate news:

  • Visa (V 227.00, +2.29, +1.0%): beats by $0.17, beats on revs

  • L3Harris (LHX 202.00, +5.46, +2.8%): misses by $0.01, beats on revs; guides FY23 EPS in-line, revs in-line

  • Intel (INTC 27.22, -2.87, -9.5%): misses by $0.10, misses on revs; guides Q1 EPS below consensus, revs below consensus

  • KLA Corporation (KLAC 409.38, -19.38, -4.5%): beats by $0.29, beats on revs; guides Q3 EPS midpoint below consensus, revs midpoint below consensus

  • Hasbro (HAS 60.15, -3.63, -5.7%): guides Q4 below consensus; cites a challenging holiday consumer environment; COO to step down; to eliminate approximately 15% of its workforce and implement leadership and other organizational changes

  • Chevron (CVX 184.83, -2.96, -1.6%): misses by $0.20, beats on revs

  • Colgate-Palmolive (CL 73.10, -2.43, -3.2%): reports EPS in-line, beats on revs; guides FY23 EPS in-line, revs in-line

  • American Express (AXP 163.82, +7.94, +5.1%): misses by $0.17, reports revs in-line; guides FY23 EPS above consensus, revs above consensus; plans dividend increase

  • Charter Comm (CHTR 400.00, -10.39, -2.5%): misses by $1.26, reports revs in-line

  • Eastman Chemical (EMN 88.90, -2.85, -3.1%): misses by $0.35, misses on revs; guides FY23 EPS above consensus

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the week on a mostly higher note while markets in China remained closed for Lunar New Year but they will reopen on Monday. Japan's Nikkei: +0.1% (+3.1% for the week), Hong Kong's Hang Seng: +0.5% (+2.9% for the week), China's Shanghai Composite: CLOSED (UNCH for the week), India's Sensex: -1.5% (-2.1% for the week), South Korea's Kospi: +0.6% (+3.7% for the week), Australia's ASX All Ordinaries: +0.3% (+0.6% for the week).

    • In economic data:

      • Japan's January Tokyo CPI 4.4% yr/yr (last 4.0%) and Core CPI 4.3% yr/yr (expected 4.2%; last 4.0%)

      • South Korea's February Manufacturing BSI Index 66 (last 71)

      • Singapore's Q4 URA Property Index 0.4% qtr/qtr (last 3.8%)

      • Australia's Q4 PPI 0.7% qtr/qtr (expected 1.7%; last 1.9%); 5.8% yr/yr (expected 6.3%; last 6.4%). Q4 Import Price Index 1.8% qtr/qtr (last 3.0%) and Export Price Index -0.9% qtr/qtr (last -3.6%)

      • New Zealand's January ANZ Business Confidence -52.0 (expected -64.2; last -70.2)

    • In news:

      • Japan's Tokyo Core CPI increased at its fastest pace since May 1981, but Japan's Prime Minister Kishida said that inflation driven by domestic demand remains "feeble" and that a return to deflation should not be ruled out.

      • Japan's government debt is expected to exceed quadrillion yen in fiscal 2026/27.

      • South Korea's POSCO Holdings reported a 46.7% yr/yr drop in 2022 profit resulting from a four-month suspension of its operations.

  • Major European indices trade in positive territory. STOXX Europe 600: +0.1% (+0.5% week-to-date), Germany's DAX: +0.2% (+0.8% week-to-date), U.K.'s FTSE 100: +0.1% (UNCH week-to-date), France's CAC 40: UNCH (+1.4% week-to-date), Italy's FTSE MIB: +0.6% (+2.4% week-to-date), Spain's IBEX 35: +0.2% (+1.5% week-to-date).

    • In economic data:

      • Eurozone's December loans to nonfinancials 6.3% yr/yr (expected 8.6%; last 8.4%) and private sector loans 3.8% yr/yr (last 4.1%)

      • France's January Consumer Confidence 80 (expected 83; last 81)

      • Italy's November Industrial Sales 0.9% m/m (last -0.8%); 11.5% yr/yr (last 12.5%)

      • Spain's Q4 GDP 0.2% qtr/qtr (expected 0.1%; last 0.2%); 2.7% yr/yr (expected 2.2%; last 4.8%)

    • In news:

      • Spain reported better than expected growth for Q4, fueling more hopes that the region could avoid a recession.

      • The British Chancellor of the Exchequer Hunt pushed back against calls for a tax cut from Conservative politicians.

      • Norway is reportedly looking to implement a mechanism to limit power exports.

 

U.S. equity futures:

  • S&P 500 Futures: -12 @ 4,048

  • DJIA Futures: -10 @ 33,940

  • Nasdaq 100 Futures: -64 @ 11,987

Overseas:

  • Europe: DAX +0.2%, FTSE +0.1%, CAC UNCH

  • Asia: Nikkei +0.1%, Hang Seng +0.5%, Shanghai Composite CLOSED

Commodities:

  • Crude Oil +1.11 @ 82.12

  • Nat Gas -0.064 @ 2.784

  • Gold -0.45 @ 1929.50

  • Silver -0.225 @ 23.795

  • Copper +0.0122 @ 4.2784

 

Earnings/Guidance:

  • American Express (AXP) misses by $0.17, reports revs in-line; guides FY23 EPS above consensus, revs above consensus; plans dividend increase

  • Ameris Bancorp (ABCB) misses by $0.17, misses on revs

  • AppFolio (APPF) beats by $0.08, beats on revs; guides FY23 revs in-line

  • Arthur J. Gallagher (AJG) beats by $0.04, beats on revs

  • Assoc Banc-Corp (ASB) beats by $0.04, net interest income up 9%

  • Autoliv (ALV) beats by $0.18, misses on revs

  • Axos Financial (AX) beats by $0.15, beats on revs

  • Booz Allen Hamilton (BAH) beats by $0.03, beats on revs; raises outlook, guides FY23 EPS in-line, revs in-line

  • Charter Comm (CHTR) misses by $1.26, reports revs in-line

  • Chevron (CVX) misses by $0.20, beats on revs; provides Q1 and FY23 production and cost guidance

  • Colgate-Palmolive (CL) reports EPS in-line, beats on revs; guides FY23 EPS in-line, revs in-line

  • Dorian LPG (LPG) sees Q3 revs above consensus

  • Eastman Chemical (EMN) misses by $0.35, misses on revs; guides FY23 EPS above consensus

  • Fair Isaac (FICO) beats by $0.08, reports revs in-line; reaffirms FY23 EPS guidance, revs guidance

  • Federated Hermes (FHI) misses by $0.10, misses on revs

  • First Bancorp (FBP) reports EPS in-line

  • First Financial (FFBC) beats by $0.04, loan growth of 20.3% on annualized basis

  • First Interstate Bancsystem (FIBK) misses by $0.19

  • Ford Motor (F) announces nationwide expansion of complimentary pickup & delivery, mobile service for all Ford customers

  • Glacier Bancorp (GBCI) misses by $0.01, net interest income increased 1%

  • Hasbro (HAS) guides Q4 below consensus; cites a challenging holiday consumer environment; COO to step down; to eliminate 1,000 jobs and implement leadership and other organizational changes

  • HCA (HCA) beats by $2.49, reports revs in-line; guides FY23 EPS below consensus, revs in-line; authorizes additional share repurchases

  • Hilltop Holdings (HTH) beats by $0.12; also increases quarterly dividend by 7%

  • Intel (INTC) misses by $0.10, misses on revs; guides Q1 EPS below consensus, revs below consensus

  • KLA Corporation (KLAC) beats by $0.29, beats on revs; guides Q3 EPS midpoint below consensus, revs midpoint below consensus

  • Knight-Swift (KNX) misses by $0.11, misses on revs; guides FY23 EPS in-line

  • L3Harris (LHX) misses by $0.01, beats on revs; guides FY23 EPS in-line, revs in-line

  • Olin (OLN) beats by $0.02, misses on revs

  • PacWest Bancorp (PACW) misses by $0.64

  • Pioneer Natural Resources (PXD) reported fourth quarter and full year 2022 production update

  • POSCO (PKX) reports FY22 results; revs below consensus

  • ResMed (RMD) beats by $0.04, beats on revs

  • Robert Half (RHI) beats by $0.01, misses on revs

  • Roper (ROP) beats by $0.15, reports revs in-line; guides Q1 EPS in-line; guides FY23 EPS in-line

  • Southside Banc (SBSI) beats by $0.02, beats on revs

  • South State (SSB) misses by $0.14, beats on revs; declares dividend

  • Trinseo (TSE) provides Q4 adjusted EBITDA guidance; Q4 results reflect a challenging operating environment

  • Visa (V) beats by $0.17, beats on revs

  • Weyerhaeuser (WY) beats by $0.06, misses on revs; declares supplemental dividend

  • W.R. Berkley (WRB) beats by $0.07, net premiums written increased nearly 7%

  • WSFS Financial (WSFS) beats by $0.01, misses on revs

News:

  • House Republicans are considering short term extension of debt limit until September 30, according to Bloomberg

  • Japan and India will limit Chinese access to semiconductors, according to Bloomberg

  • White House releases new data showing 26 million people in all 50 states applied or were automatically eligible for one-time student debt relief

  • FDA advisers vote in favor of using same strain for initial COVID-19 vaccines and boosters, according to Reuters

  • UK Chancellor sets out long-term vision to grow the economy

  • Vegas guests file lawsuit over hotel room rates, according to Bloomberg

  • India's Adani Group lost $42 bln in value amid short seller allegations, according to Financial Times

  • Air France-KLM (AFLYY) continues to renew its fleet and places firm order for 4 Airbus (EADSY) A350F full freighter aircraft for Martinair (part of the KLM Group), and 3 A350-900 passenger aircraft for Air France

  • argenx (ARGX) receives PDUFA date extension for SC Efgartigimod

  • Asbury Automotive (ABG) increases stock repurchase authorization to by $108 mln to $200 mln

  • Biogen (BIIB) receives EMA acceptances for MAA for Lecanemab

  • Bristol-Myers (BMY) confirms positive CHMP opinion for once-daily Sotyktu (deucravacitinib) as a treatment for adults with moderate-to-severe plaque psoriasis

  • Bristol-Myers (BMY) confirms positive CHMP opinion for Reblozyl for adult patients with anemia-associated, non-transfusion-dependent beta thalassemia

  • CalAmp (CAMP) announces that it initiated a restructuring plan to reduce approximately eight percent of its employees across various functions

  • Canoo (GOEV) names Ken Manget as CFO

  • Charles Schwab (SCHW) increases quarterly cash dividend 14% to $0.25/share from $0.22/share

  • CVS Health (CVS) and Wal Mart (WMT) will lower pharmacy hours due to staffing issues, according to the Wall Street Journal

  • Ecopetrol (EC) announces that Felipe Bayn Pardo will lead the Company as CEO until March 31, 2023

  • Granite Constr (GVA) awarded approximately $46 mln California Department of Transportation contract

  • Home Depot (HD) Canada division was found sharing details from e-receipts with Facebook owner Meta Platforms (META), according to Reuters

  • Industrias Bachoco SA (IBA) announces retirement of its CEO Rodolfo Ramos, Ernesto Salmon to succeed him as CEO; effective April 17, 2023

  • JELD-WEN (JELD) to close manufacturing facility in Atlanta, GA; to incur pre-tax expenses of approximately $19 mln

  • Lockheed Martin's (LMT) Sikorsky awarded $657 mln U.S. Army contract modification

  • Marqeta (MQ) appoints Simon Khalaf as its new CEO, effective January 31, 2023

  • Merck's (MRK) anti-PD-1 therapy KEYTRUDA received FDA approval for adjuvant treatment following surgical resection and platinum-based chemotherapy for adult patients with stage IB, II, or IIIA non-small cell lung cancer

  • New Pacific Metals (NEWP) names Andrew Williams as President

  • Orion Corp (ORINY) confirms positive CHMP opinion for darolutamide in combination with docetaxel for the treatment of metastatic hormone-sensitive prostate cancer

  • PacWest Bancorp (PACW) announces new strategic plan; to wind down operations in Premium Finance and Multi-Family lending groups in 4Q22

  • Petrobras (PBR) reports proved reserves estimated at 10.5 billion barrels of oil equivalent (boe), as of December 31, 2022

  • Regeneron Pharma (REGN): Dupixent (dupilumab) Recommended for Expanded EU Approval by the CHMP to Treat Children as Young as Six Months Old with Severe Atopic Dermatitis

  • Sana Biotechnology (SANA): FDA clears SANA's Investigational New Drug (IND) application to initiate first in-human study of SC291, a CD19-targeted allogeneic CAR T cell therapy

  • Silvergate Capital (SI) has suspended the payment of dividends on its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, in order to preserve capital

  • Uber (UBER): US warns travelers against taking Uber rides in Mexican tourist destinations, according to the Wall Street Journal

  • Wash. Federal (WAFD) CEO Brent Beardall making significant progress recovering from a small plane crash earlier this month; expects to be discharged from hospital on February 10

  • Wintrust Fin (WTFC) increases quarterly cash dividend 17.6% to $0.40/share from $0.34/share

M&A:

  • Arco Platform's (ARCE) board of directors formed a special committee to evaluate previously announced non-binding go private proposal from General Atlantic L.P. and Dragoneer Investment Group; no decision has been made with respect to proposal

  • OneSpan (OSPN) to acquire ProvenDB, which offers secure storage and vaulting for documents based on blockchain technology

  • Sol-Gel (SLGL) acquires Patidegib, a Phase 3, FDA-breakthrough-designated orphan product candidate to pursue potential market of over $300 million

  • TopBuild (BLD) acquires SRI Holdings; financial terms were not disclosed

  • TotalEnergies SE (TTE) unit acquires additional interest in Fort Hills

Syndicate:

  • No syndicate news of note.

IPOs:

  • Expected to Price:

    • TXO Energy Partners (NYSE: TXO): The developer and acquirer of conventional oil, natural gas, and natural gas liquid reserves in North America is expected to price its 5.0 M share IPO between $19-$21.

Gapping Up/Down

  • Gapping up:

    • NOG +7.3%, LHX +3%, RMD +2.3%, SBCF +2.2%, GVA+1.7%, AX +1.6%, AJG +1.6%, V +1.3%, GOEV +0.8%, ABG +0.7%, CVX +0.6%, LMT +0.5%, FFBC +0.5%

  • Gapping down:

    • INTC -9.4%, PACW -8%, WRB -5.8%, KLAC -5.7%, HAS -5.1%, ARCE -4.7%, RHI -4.7%, APPF -3.9%, EMN -3.1%, MQ -2.8%, ABCB -2.7%, AMD -2.5%, FICO -2.5%, MAT -2.2%, NVDA -2%, FHI -2%, FIBK-2%, SSB -1.9%, TSE -1.9%, LPG -1.7%, ARGX-1.4%, KNX -1.4%, BLD -1.3%, AROC -1.2%, MRNA-1.1%, NI -0.9%

 


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

    • Akero Therapeutics (AKRO) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $65

    • Cabaletta Bio (CABA) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $16

    • Chewy (CHWY) upgraded to Outperform from Neutral at Wedbush; tgt $55

    • General Mills (GIS) upgraded to Buy from Neutral at UBS; tgt raised to $88

    • Iovance Biotherapeutics (IOVA) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $14

    • McCormick (MKC) upgraded to Outperform from Mkt Perform at Bernstein; tgt $90

    • Premier (PINC) upgraded to Neutral from Underperform at Credit Suisse; tgt $38

    • Take-Two (TTWO) upgraded to Outperform from Market Perform at MoffettNathanson; tgt $140

    • Viatris (VTRS) upgraded to Buy from Hold at Jefferies; tgt raised to $15

    • Vir Biotechnology (VIR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $30

  • Downgrades:

    • Alaska Air (ALK) downgraded to Peer Perform from Outperform at Wolfe Research

    • Aveanna (AVAH) downgraded to Underperform from Neutral at Credit Suisse; tgt lowered to $1

    • Bridgewater Bancshares (BWB) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $17

    • CBRE Group (CBRE) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $88

    • Datadog (DDOG) downgraded to Neutral from Buy at BTIG Research

    • Fortinet (FTNT) downgraded to Neutral from Buy at Mizuho; tgt $60

    • Hess (HES) downgraded to Neutral from Buy at Goldman; tgt raised to $170

    • Northrop Grumman (NOC) downgraded to Market Perform from Outperform at Cowen; tgt lowered to $478

    • Origin Bancorp (OBNK) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $41

    • Playtika (PLTK) downgraded to Neutral from Buy at DA Davidson; tgt $11

    • Ralph Lauren (RL) downgraded to Underperform from Market Perform at BMO Capital Markets; tgt $100

    • Steel Dynamics (STLD) downgraded to Neutral from Buy at Goldman; tgt raised to $118

    • Taysha Gene Therapies (TSHA) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $3

    • Teradyne (TER) downgraded to Hold from Buy at Loop Capital; tgt lowered to $102

    • Y-mAbs Therapeutics (YMAB) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt $4

  • Others:

    • Alerus Financial (ALRS) assumed with a Mkt Perform at Raymond James

    • Bill.com(BILL) initiated with a Buy at Citigroup; tgt $131

    • CBRE Group (CBRE) initiated with a Buy at Citigroup; tgt $100

    • CNH Industrial (CNHI) initiated with a Buy at Berenberg; tgt $31

    • Commvault Systems (CVLT) initiated with a Buy at Guggenheim; tgt $86

    • Compass Therapeutics (CMPX) initiated with a Buy at Stifel; tgt $9

    • Confluent (CFLT) initiated with a Buy at Guggenheim; tgt $29

    • Couchbase (BASE) initiated with a Buy at Guggenheim; tgt $20

    • Driven Brands (DRVN) initiated with a Buy at The Benchmark Company; tgt $40

    • Electronic Arts (EA) assumed with an Outperform at Wedbush

    • Informatica (INFA) initiated with a Buy at Guggenheim; tgt $24

    • InterDigital (IDCC) initiated with an Outperform at William Blair

    • Jones Lang LaSalle (JLL) initiated with a Neutral at Citigroup; tgt $200

    • MongoDB (MDB) initiated with a Neutral at Guggenheim; tgt $205

    • Prothena (PRTA) initiated with an Overweight at Piper Sandler; tgt $94

    • Rain Oncology (RAIN) placed on 90-day Positive Catalyst Watch at Citigroup

    • Standex International (SXI) initiated with a Buy at The Benchmark Company; tgt $150

    • Take-Two (TTWO) assumed with an Outperform at Wedbush

    • Teradata (TDC) initiated with a Neutral at Guggenheim

Upcoming Events:

  • Econ Data:

    • 08:30 ET: Personal Income for Dec (Briefing.comConsensus 0.2%; Prior 0.4%)

    • 08:30 ET: Personal Spending for Dec (Briefing.comConsensus -0.1%; Prior 0.1%)

    • 08:30 ET: PCE Prices for Dec (Briefing.comConsensus 0.0%; Prior 0.1%)

    • 08:30 ET: PCE Prices - Core for Dec (Briefing.comConsensus 0.3%; Prior 0.2%)

    • 10:00 ET: Pending Home Sales for Dec (Briefing.comConsensus -1.0%; Prior -4.0%)

    • 10:00 ET: Univ. of Michigan Consumer Sentiment - Final for Jan (Briefing.comConsensus 64.6; Prior 64.6)

  • Earnings:

    • Monday (Jan 23)

      • Morning:  BKR BOH SYF

      • Afternoon: BRO CR FNB HOPE IBTX LOGI UMPQ ZION

    • Tuesday (Jan 24)

      • Morning: MMM AUB COLB CBU DHI DHR GATX GE HAL IVZ JNJ LMT ONB PCAR RTX SFNC TRV UNP VZ

      • Afternoon:  AGYS CNI COF FFIV FCF ISRG MRTN MSFT NBHC NAVI NXGN RNST SLGN LRN TXN TRMK UMBF VBTX WSBC WAL

    • Wednesday (Jan 25)

      • Morning:  ABT APH ASML T ADP BA BOKF ELV EXTR FCX GD GPI HES KMB LKFN MKTX MNRO NDAQ NEE NEP NSC BPOP PGR PB RES TEL TDY TXT USB

      • Afternoon:  AMP AZPN AXTA AXS BOOT CACI CALX CATY CLS CNS CCI CSX CVBF ETD FLEX HXL IBM KNX LRCX LVS LC LEVI LBRT PKG CASH PLXS XM RJF RLI STX SEIC NOW SLG STLD TER TSLA URI WOLF

    • Thursday (Jan 26)

      • Morning: ALK AAL AIT ADM BHLB BX BFH CRS CNX CMCSA CFR DOW EXP EWBC JBLU HZO MMC MA MKC MUR NTCT NOK NOC NUE OSIS PPBI ROK SASR SAP SHW LUV STM TROW TSCO VLO VLY VIRT WBS XEL XRX

      • Afternoon:  ABCB AJG ASB AX EMN FICO FHI FFBC FIBK GBCI HTH INTC KLAC LHX OLN PACW RMD RHI SSB V WRB WY WSFS

    • Friday (Jan 27)  

      • Morning:  AXP ALV BMI BAH CHTR CVX CL FBP FHB GNTX HCA PFS ROP SBSI STEL

Asia & Europe detail:

Asia: Nikkei +0.1%, Hang Seng +0.5%, Shanghai Composite CLOSED

Equity indices in the Asia-Pacific region ended the week on a mostly higher note while markets in China remained closed for Lunar New Year but they will reopen on Monday. Japan's Tokyo Core CPI increased at its fastest pace since May 1981, but Japan's Prime Minister Kishida said that inflation driven by domestic demand remains "feeble" and that a return to deflation should not be ruled out. Japan's government debt is expected to exceed quadrillion yen in fiscal 2026/27. South Korea's POSCO Holdings reported a 46.7% yr/yr drop in 2022 profit resulting from a four-month suspension of its operations.

  • In economic data:

    • Japan's January Tokyo CPI 4.4% yr/yr (last 4.0%) and Core CPI 4.3% yr/yr (expected 4.2%; last 4.0%)

    • South Korea's February Manufacturing BSI Index 66 (last 71)

    • Singapore's Q4 URA Property Index 0.4% qtr/qtr (last 3.8%)

    • Australia's Q4 PPI 0.7% qtr/qtr (expected 1.7%; last 1.9%); 5.8% yr/yr (expected 6.3%; last 6.4%). Q4 Import Price Index 1.8% qtr/qtr (last 3.0%) and Export Price Index -0.9% qtr/qtr (last -3.6%)

    • New Zealand's January ANZ Business Confidence -52.0 (expected -64.2; last -70.2)

---Equity Markets---

  • Japan's Nikkei: +0.1% (+3.1% for the week)

  • Hong Kong's Hang Seng: +0.5% (+2.9% for the week)

  • China's Shanghai Composite: CLOSED (UNCH for the week)

  • India's Sensex: -1.5% (-2.1% for the week)

  • South Korea's Kospi: +0.6% (+3.7% for the week)

  • Australia's ASX All Ordinaries: +0.3% (+0.6% for the week)

---FX---

  • USD/JPY: -0.2% to 129.93

  • USD/CNH: +0.3% to 6.7504

  • USD/INR: +0.2% to 81.57

 

Europe: DAX +0.2%, FTSE +0.1%, CAC UNCH

Major European indices trade in positive territory. Spain reported better than expected growth for Q4, fueling more hopes that the region could avoid a recession. The British Chancellor of the Exchequer Hunt pushed back against calls for a tax cut from Conservative politicians. Norway is reportedly looking to implement a mechanism to limit power exports.

  • In economic data:

    • Eurozone's December loans to nonfinancials 6.3% yr/yr (expected 8.6%; last 8.4%) and private sector loans 3.8% yr/yr (last 4.1%)

    • France's January Consumer Confidence 80 (expected 83; last 81)

    • Italy's November Industrial Sales 0.9% m/m (last -0.8%); 11.5% yr/yr (last 12.5%)

    • Spain's Q4 GDP 0.2% qtr/qtr (expected 0.1%; last 0.2%); 2.7% yr/yr (expected 2.2%; last 4.8%)

---Equity Markets---

  • STOXX Europe 600: +0.1% (+0.5% week-to-date)

  • Germany's DAX: +0.2% (+0.8% week-to-date)

  • U.K.'s FTSE 100: +0.1% (UNCH week-to-date)

  • France's CAC 40: UNCH (+1.4% week-to-date)

  • Italy's FTSE MIB: +0.6% (+2.4% week-to-date)

  • Spain's IBEX 35: +0.2% (+1.5% week-to-date)

---FX---

  • EUR/USD: -0.1% to 1.0878

  • GBP/USD: -0.3% to 1.2368

  • USD/CHF: +0.2% to 0.9222

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