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28/01/22 Briefing

The S&P 500 futures trade 37 points, or 0.9%, below fair value as the downside volatility persists in front of key inflation data. Apple (AAPL 163.09, +3.87, +2.4%) is providing offsetting support for the futures market following its better-than-expected earnings report.

Specifically, the Fed's preferred measure of inflation in the PCE Price Index (Briefing.comconsensus +0.4%) will be included in the Personal Income (Briefing.comconsensus +0.5%) and Spending (Briefing.comconsensus +0.5%) report for December at 8:30 a.m. ET.

The Treasury market is sniffing a hot report, which should support the case for the Fed to be more assertive in tightening policy to rein in inflation. The 2-yr yield is up three basis points to 1.22%, and the 10-yr yield is up three basis points to 1.84%. The U.S. Dollar Index is up 0.1% to 97.37. WTI crude is up 0.7% to $87.18/bbl.

Back to earnings, Apple, in addition to beating top and bottom-line estimates, said it expects Q2 revenue growth to be "solid" but below the 11.3% growth rate in the December quarter. Visa (V 213.40, +7.26, +3.5%) and Caterpillar (CAT 208.04, -4.13, -2.0%) also topped EPS estimates but not Chevron (CVX 130.95, -4.42, -3.3%).

Separately, Russia-Ukraine concerns remain in the mix. President Biden told Ukrainian President Zelenskyy that a Russian invasion is "virtually certain" when ground freezes over and he should "prepare for impact," according to CNN.

In other data, the Q4 Employment Cost Index will be released alongside the PCE Price Index at 8:30 a.m. ET, followed by the final University of Michigan Index of Consumer Sentiment for January (Briefing.comconsensus 68.8) at 10:00 a.m. ET.

In U.S. Corporate news:

  • Apple (AAPL 163.09, +3.87): +2.4% after beating top and bottom-line estimates. The company expects "solid" Q2 revenue growth, indicating it will be less than the growth rate for the December quarter (+11.3%).

  • Visa (V 213.40, +7.26): +3.5% after beating top and bottom-line estimates.

  • Chevron (CVX 130.95, -4.42): -3.3% after missing EPS estimates on above-consensus revenue.

  • Caterpillar (CAT 208.04, -4.13): -2.0% after beating top and bottom-line estimates.

  • Robinhood Markets (HOOD 10.00, -1.61): -13.9% after missing top and bottom-line estimates and guiding Q1 revenue below consensus.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei: +2.1% (-2.9% for the week) Hong Kong's Hang Seng: -1.1% (-5.7% for the week) China's Shanghai Composite: -1.0% (-4.6% for the week) India's Sensex: -0.1% (-3.1% for the week) South Korea's Kospi: +1.9% (-6.0% for the week) Australia's ASX All Ordinaries: +2.1% (-3.0% for the week).

  • In economic data:

  • Japan's January Tokyo CPI 0.5% yr/yr (last 0.8%) and Tokyo Core CPI 0.2% yr/yr (expected 0.3%; last 0.5%)

  • South Korea's December Industrial Production 4.3% m/m (last 5.3%); 6.2% yr/yr (last 6.3%). December Retail Sales 2.0% m/m (last -1.9%) and December Service Sector Output -0.4% m/m (last 2.1%)

  • Australia's Q4 PPI 1.3% qtr/qtr (expected 0.9%; last 1.1%); 3.7% yr/yr (last 2.9%)

  • Singapore's Q4 Unemployment Rate 2.4% (last 2.6%) and Q4 URA Property Index 5.0% qtr/qtr (last 5.0%)

  • Hong Kong's Q4 GDP 0.2% qtr/qtr (expected 0.8%; last 0.6%); 4.8% yr/yr (expected 4.7%; last 5.5%)


  • In news:

  • China expressed displeasure after Taiwan's vice president met with the U.S. vice president in Honduras.

  • Bank of Japan Governor Kuroda said that global central banks will issue digital currencies at a various pace, but there is a shared view on a need for a stable settlement system.

  • The Bank of Korea will hold a meeting on Thursday to review the current market situation.

  • China's Shanghai Composite will be closed throughout next week for Lunar New Year while South Korea's Kospi will be closed through Wednesday.



  • Major European indices trade lower across the board. STOXX Europe 600: -1.6% (-2.5% week-to-date) Germany's DAX: -2.3% (-2.8% week-to-date) U.K.'s FTSE 100: -1.5% (-0.7% week-to-date) France's CAC 40: -2.2% (-2.8% week-to-date) Italy's FTSE MIB: -1.9% (-2.6% week-to-date) Spain's IBEX 35: -1.8% (-1.7% week-to-date).

  • In economic data:

  • Eurozone's January Business and Consumer Survey 112.7 (expected 114.5; last 113.8). December Private Sector Loans 4.1% yr/yr (expected 4.2%; last 4.2%)

  • Germany's Q4 GDP -0.7% qtr/qtr (expected -0.3%; last 1.7%); 1.4% yr/yr (expected 1.8%; last 2.9%). December Import Price Index 0.1% m/m (expected 2.0%; last 3.0%); 24.0% yr/yr (expected 26.4%; last 24.7%)

  • France's Q4 GDP 0.7% qtr/qtr (expected 0.5%; last 3.1%); 5.4% yr/yr (last 3.5%). December Consumer Spending 0.2% m/m, as expected (last 0.9%). December PPI 1.0% m/m (last 3.9%)

  • Italy's January Business Confidence 113.9 (expected 115.3; last 115.0) and Consumer Confidence 114.2 (expected 116.5; last 117.7). December PPI 0.8% m/m (last 1.2%); 22.6% yr/yr (last 22.2%)

  • Spain's Q4 GDP 2.0% qtr/qtr (expected 1.4%; last 2.6%); 5.2% yr/yr (expected 4.5%; last 3.4%). January Business Confidence 6.7 (expected 5.5; last 5.9)


  • In news:

  • France and Spain reported better than expected GPD growth in Q4 while Germany's economy contracted more than expected.

  • Germany's economy minister said that 2023 growth is expected to slow to 2.3% from 3.6% growth expected in 2022.

  • Italy's parliament entered the fifth day of voting for president.

  • Volvo's Q4 profit beat expectations, though the company's results were down yr/yr.



U.S. equity futures:

  • S&P 500 Futures: -46 @ 4,281

  • DJIA Futures: -366 @ 33,765

  • Nasdaq 100 Futures: -132 @ 13,872

Overseas:

  • Europe: DAX -2.3%, FTSE -1.5%, CAC -2.2%

  • Asia: Nikkei +2.1%, Hang Seng -1.1%, Shanghai Composite -1.0%

Commodities:

  • Crude Oil +0.52 @ 87.13

  • Nat Gas +0.230 @ 4.513

  • Gold -8.00 @ 1785.10

  • Silver -0.173 @ 22.803

  • Copper -0.0713 @ 4.3522

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

  • Ameris Bancorp (ABCB) reports EPS in-line, beats on revs

  • Apple (AAPL) beats on the top and bottom line lead by beats in iPhones and Mac revenue; iPad revenue misses

  • Arthur J. Gallagher (AJG) beats by $0.03, beats on revs

  • Atlassian (TEAM) beats by $0.11, beats on revs; guides Q3 EPS below consensus, revs above consensus

  • Autoliv (ALV) beats by $0.13, misses on revs; provides FY22 organic sales guidance

  • Axos Financial (AX) beats by $0.06, reports revs in-line

  • Beazer Homes (BZH) beats by $0.47, reports revs in-line; reaffirms FY22 EPS guidance

  • Boot Barn Holdings (BOOT) beats by $0.02, reports revs in-line

  • Booz Allen Hamilton (BAH) beats by $0.03, misses on revs; reaffirms FY22 EPS guidance, guides FY22 revs below consensus

  • Canadian Pacific (CP) misses by $0.02, beats on revs

  • Caterpillar (CAT) beats by $0.43, beats on revs

  • Cathay Bancorp (CATY) beats by $0.06, beats on revs

  • Celanese (CE) misses by $0.15, reports revs in-line; guides Q1 EPS above consensus; guides FY22 EPS below consensus

  • Charter Comm (CHTR) beats by $1.81, reports revs in-line

  • Chevron (CVX) misses by $0.57, beats on revs

  • Church & Dwight (CHD) beats by $0.04, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY22 EPS in-line, revs in line

  • Clearfield (CLFD) beats by $0.31, beats on revs; reinstates and increases repurchase program to $22 mln

  • Colgate-Palmolive (CL) reports EPS in-line, revs in-line; guides FY22 EPS in-line, revs in-line

  • Eastman Chemical (EMN) misses by $0.06, beats on revs; guides FY22 EPS in-line, revenue above consensus

  • Eastman Kodak (KODK) launches KODACOLOR film-to-fabric (also known as dtf or direct-to-film) ink system

  • Ethan Allen (ETD) beats by $0.19, beats on revs

  • Fair Isaac (FICO) beats by $0.34, misses on revs; reaffirms FY22 EPS guidance, revs guidance

  • Federated Hermes (FHI) reports EPS in-line, misses on revs

  • First Financial (FFBC) beats by $0.02, beats on revs

  • First Interstate Bancsystem (FIBK) beats by $0.12, misses on revs

  • Glacier Bancorp (GBCI) misses by $0.11, misses on revs

  • Hilltop Holdings (HTH) beats by $0.07, misses on revs

  • Juniper Networks (JNPR) beats by $0.03, beats on revs; guides Q1 EPS in-line, revs in-line; increases dividend

  • KLA Corporation (KLAC) beats by $0.14, reports revs in-line; guides Q3 EPS below consensus, revs below consensus

  • LyondellBasell (LYB) misses by $0.23, beats on revs

  • Mitek Systems (MITK) beats by $0.06, beats on revs

  • Mondelez Int'l (MDLZ) misses by $0.02, reports revs in-line; expects organic net revenue growth of 3+% in FY22

  • Natl Instruments (NATI) beats by $0.05, beats on revs; guides Q1 EPS in-line, revs in-line

  • Nurix Therapeutics (NRIX) misses by $0.16, misses on revs

  • Olin (OLN) misses by $0.56, beats on revs

  • Oscar Health (OSCR) reports preliminary results for FY21 with adjusted EBITDA exceeding its guidance range; provides FY22 guidance

  • Phillips 66 (PSX) beats by $0.99

  • ResMed (RMD) misses by $0.05, misses on revs

  • Robert Half (RHI) beats by $0.08, beats on revs

  • Robinhood Markets (HOOD) misses by $0.05, misses on revs, issues downside Q1 revenue guidance

  • Southside Banc (SBSI) beats by $0.12, beats on revs

  • Stryker (SYK) misses by $0.01, beats on revs; guides FY22 EPS below consensus

  • Synchrony Financial (SYF) reports Q4 (Dec) results

  • Teck Resources (TECK) provides Q4 and FY22 guidance update

  • U.S. Steel (X) misses by $0.61, beats on revs; also authorizes a new $500 mln stock repurchase program

  • V.F. Corp (VFC) reports Q3 (Dec) results, revs in-line; guides FY22 EPS above consensus, revs below consensus

  • Visa (V) beats by $0.11, beats on revs

  • Western Alliance Bancorp (WAL) reports EPS in-line, revs in-line

  • Western Digital (WDC) beats by $0.18, reports revs in-line; guides MarQ EPS below consensus, revs below consensus

  • Weyerhaeuser (WY) beats by $0.01, beats on revs

  • WisdomTree (WETF) beats by $0.01, reports revs in-line

  • W.R. Berkley (WRB) beats by $0.34, beats on revs


  • General News:

  • President Biden warns Ukrainian President Zelenskyy that there is a "high degree of likelihood" that Russia will invade his country when the ground freezes over, according to the Washington Post

  • Congressional leadership wants to pass full budget bill, but experts believe they will forced to pass another continuing resolution to avoid a government shutdown on February 18because of disagreements on spending, according to The Hill

  • White House preparing executive order to regulate cryptocurrency, according to Barron's

  • Global EV sales increased to 4.5 mln in 2021 from 2.1 mln in 2020. EV sales currently represent 3% of US sales and 6.3% of global sales, according to CNN

  • Judge blocks oil leases in Gulf of Mexico, according to the Wall Street Journal

  • China will apply overseas IPO rules to Hong Kong, according to CNBC

  • China competitiveness legislation related to the semiconductor industry has moved to the top of priority list in Congress, according to CNN

  • Activision (ATVI) will have its next three Call of Duty games on Xbox and PlayStation, according to Bloomberg

  • Algoma Steel Group (ASTL) awards GE Gas Power (GE) contract for upgrade to natural gas combined cycle power plant

  • Alliance Resource (ARLP) approved increased quarterly cash distribution of $0.25 per unit, prior $0.20 per unit

  • ALX Oncology (ALXO): FDA grants orphan drug designation to evorpacept

  • American Water Works (AWK) reinstates Walter Lynch as CEO, effective January 31

  • Amryt Pharma plc (AMYT) announces that the European Medicines Agency plans to seek external independent Epidermolysis Bullosa specific expertise and advice on the assessment of Oleogel-S10 for the treatment of the cutaneous manifestations of Junctional and Dystrophic EB

  • Apollo Global Management (APO) provides update on merger-related and other financial items; believes fully met all criteria for inclusion in the S&P 500 index

  • Archaea Energy (LFG) expands commercial partnership with Forts (FTS) subsidiary FortisBC Energy

  • BeiGene (BGNE) receives acceptance of Supplemental New Drug Application in China for BRUKINSA

  • Bristol-Myers (BMY) receives positive CHMP opinion for CAR T therapy Breyanzi for treatment of certain types of lymphoma

  • Fidelity Nat'l Info (FIS) increases quarterly dividend to $0.47/share from $0.39/share

  • Franco-Nevada (FNV) increases quarterly dividend to $0.32/share from $0.30/share

  • FTC Solar (FTCI) COO Deepak Navnith to step down

  • Google (GOOG) aiming to invest $1 bln in Bharti Airtel, according to Bloomberg

  • Harvard Biosci (HBIO) accepted the resignation of Ken Olson for personal reasons from his position as Chief Operating Officer of the Company effective January 31, 2022

  • Home Depot (HD) appoints Ted Decker as CEO, effective March 1

  • HomeStreet (HMST) expands share repurchase program by $75 mln; raises dividend by 40%

  • Insulet (PODD) received FDA clearance for its Omnipod 5 Automated Insulin Delivery System (Omnipod 5) for individuals aged six years and older with type 1 diabetes

  • Kaman's (KAMN) indirect, wholly owned subsidiary, Vermont, announces the expansion of its medical imaging program through the recent new partnership with Mirion Technologies

  • KE Holdings (BEKE) provides an update on the status of its internal review

  • Matson (MATX) adds 3 mln shares to existing share repurchase authorization

  • Merck (MRK) and Ridgeback's molnupiravir, an investigational oral antiviral COVID-19 medicine, demonstrated activity against Omicron variant in in vitro studies

  • Mercury (MRCY) was awarded a $17 mln contract to provide crucial RF microelectronics supporting missile capabilities of the U.S. and its allies in ensuring 21st-century air dominance

  • NiSource (NI) announces retirement of CEO Joe Hamrock, effective February 14

  • Okta (OKTA) announced that Brett Tighe, Okta's interim Chief Financial Officer, has been appointed to the role of Chief Financial Officer, effective immediately

  • Omega Health (OHI) has authorized the repurchase of up to $500 mln of Omega's outstanding common stock, from time to time, through March 2025

  • Orange (ORAN): Christel Heydemann appointed Chief Executive Officer of Orange with effect from April 4

  • Pacific City Financial (PCB) increases quarterly cash dividend to $0.15/share from $0.12/share

  • Penn Natl Gaming (PENN) has received approval from the Louisiana Gaming Control Board to offer online sports betting in the state

  • Polaris Industries (PII) increases quarterly cash dividend t $0.64/share from $0.63/share

  • Provention Bio (PRVB) to resubmit BLA application for delay of clinical type 1 diabetes in at-risk individuals following Type B

  • Regeneron Pharma (REGN) and Sanofi (SNY) announced the voluntary withdrawal of the sBLA for Libtayo as a second-line treatment for patients with advanced cervical cancer

  • Sempra Energy (SRE) subsidiary signs MOU with Entergy Louisiana to advance renewable energy

  • Sierra Metals (SMTS) announces changes to organizational structure following strategic review

  • Silvercorp Metals (SVM) reported additional high-grade intercepts from its 2021 exploration program at the TLP mine

  • SSR Mining (SSRM) reports fatal vehicle accident near Puna; ops at Puna have been temporarily paused

  • Toll Brothers (TOL) announces that co-founder Robert I. Toll has chosen not to stand for re-election to the Board of Directors at the Company's March 8, 2022meeting of stockholders

  • TPG RE Finance Trust (TRTX) appointed Doug Bouquard as Chief Executive Officer and elected him as a director, in each case effective April 25, 2022

  • Uber (UBER), Lyft (LYFT), and Teamsters are trying to reach a compromise, according to Bloomberg

  • Western Digital (WDC) appoints Wissam Jabre as CFO, effective in February

  • Wintrust Financial (WTFC) increases quarterly cash dividend to $0.34/share from $0.31/share


  • M&A:

  • Biogen (BIIB) reaches agreement with Samsung Biologics to sell equity stake in their biosimilar joint venture for up to $2.3 bln

  • Citigroup (C): DBS Bank to acquire Citi's consumer banking business in Taiwan

  • Old National Bancorp (ONB) and First Midwest Bancorp (FMBI) receive final regulatory approval for merger of equals

  • Petrobras Brasileiro (PBR) confirmed the cancellation of the public offering of Braskem (BAK) shares

  • Western Alliance Bancorp (WAL) has completed the acquisition of Digital Settlement Technologies, DBA Digital Disbursements, the leading digital payments platform for the class action legal industry; financial terms not disclosed


  • Syndicate:

  • Applied Molecular Transport (AMTI) enters into $150 mln common stock sales agreement with JMP


  • IPOs:

  • Expected to Price:

  • No IPOs expected to price.



Gapping Up/Down

  • Gapping up:

  • ALXO +11.4%, CLFD +10.4%, NATI +9.5%, FFBC+8.9%, TEAM +8.6%, PRVB +8.5%, MITK +8.3%, WTFC +7.4%, BZH +5.1%, OSCR +4.3%, V +4.2%, FIXX +3.3%, AAPL +3.2%, ETD +3.1%, MATX +2.7%, X+2.2%, CP +1.8%, OHI +1.4%, TOL +1.1%, TECK +1%, WY +0.8%, FIS +0.7%, PENN +0.6%, SRE +0.6%


  • Gapping down:

  • HOOD -15.2%, WDC -10%, WAL -5.2%, OLN -4.8%, SYK -3.8%, NRIX -3.1%, RHI -2.7%, CE -2.5%, STLA-2.4%, RMD -2.4%, MDLZ -2.2%, KLAC -2.2%, FIBK-1.6%, SYF -1.6%, FICO -1.4%


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • Axos Financial (AX) upgraded to Buy from Neutral at B. Riley Securities; tgt $62

  • Calix Networks (CALX) upgraded to Buy from Hold at Craig Hallum

  • Cambium Networks (CMBM) upgraded to Strong Buy from Mkt Perform at Raymond James; tgt $35

  • ChargePoint (CHPT) upgraded to Overweight from Neutral at JP Morgan; tgt $20

  • Columbia Sportswear (COLM) upgraded to Buy from Neutral at Seaport Research Partners; tgt $120

  • Corning (GLW) upgraded to Positive from Neutral at Susquehanna; tgt raised to $50

  • Crown Castle (CCI) upgraded to Outperform from Mkt Perform at Raymond James; tgt $184

  • Cullen/Frost (CFR) upgraded to Outperform from Mkt Perform at Raymond James

  • First Northwest Bancorp (FNWB) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $24

  • General Dynamics (GD) upgraded to Peer Perform from Underperform at Wolfe Research

  • Grupo Aeroportuario (OMAB) upgraded to Buy from Neutral at UBS

  • Iovance Biotherapeutics (IOVA) upgraded to Buy from Hold at Stifel; tgt raised to $25

  • Kirby (KEX) upgraded to Buy from Neutral at BTIG Research; tgt $80


  • Downgrades:

  • Cortexyme (CRTX) downgraded to Hold from Buy at Canaccord Genuity; tgt lowered to $12

  • Kroger (KR) downgraded to Sell from Neutral at Citigroup; tgt lowered to $42

  • Nielsen (NLSN) downgraded to Hold from Buy at Truist; tgt lowered to $22

  • Ollie's Bargain Outlet (OLLI) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $51

  • Oxford Industries (OXM) downgraded to Sell from Neutral at Citigroup; tgt lowered to $84


  • Others:

  • Advance Auto (AAP) initiated with a Sector Perform at RBC Capital Mkts; tgt $239

  • Celularity (CELU) initiated with an Outperform at Oppenheimer; tgt $9

  • Corcept Therapeutics (CORT) initiated with a Buy at Truist; tgt $30

  • Cytokinetics (CYTK) initiated with a Buy at Goldman; tgt $74

  • Edgewise Therapeutics (EWTX) initiated with a Neutral at Goldman; tgt $11

  • Five9 (FIVN) resumed with an Underperform at BofA Securities; tgt $100

  • Grab (GRAB) initiated with a Buy at Goldman; tgt $7.90

  • Marathon Digital Holdings (MARA) initiated with a Buy at Jefferies; tgt $51

  • O'Reilly Auto (ORLY) initiated with an Outperform at RBC Capital Mkts; tgt $755


ZUpcoming Events:

  • Econ Data:

  • 08:30 ET: Personal Income for Dec (Briefing.comConsensus 0.5%; Prior 0.4%)

  • 08:30 ET: Personal Spending for Dec (Briefing.comConsensus -0.6%; Prior 0.6%)

  • 08:30 ET: PCE Prices for Dec (Briefing.comConsensus 0.4%; Prior 0.6%)

  • 08:30 ET: PCE Prices - Core for Dec (Briefing.comConsensus 0.4%; Prior 0.5%)

  • 08:30 ET: Employment Cost Index for Q4 (Briefing.comConsensus 1.1%; Prior 1.3%)

  • 10:00 ET: Univ. of Michigan Consumer Sentiment - Final for Jan (Briefing.comConsensus 68.8; Prior 68.8)


  • 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 +2.1%, Hang Seng -1.1%, Shanghai Composite -1.0%

Equity indices in the Asia-Pacific region ended the week on a mixed note. China expressed displeasure after Taiwan's vice president met with the U.S. vice president in Honduras. Bank of Japan Governor Kuroda said that global central banks will issue digital currencies at a various pace, but there is a shared view on a need for a stable settlement system. The Bank of Korea will hold a meeting on Thursday to review the current market situation. China's Shanghai Composite will be closed throughout next week for Lunar New Year while South Korea's Kospi will be closed through Wednesday.

  • In economic data:

  • Japan's January Tokyo CPI 0.5% yr/yr (last 0.8%) and Tokyo Core CPI 0.2% yr/yr (expected 0.3%; last 0.5%)

  • South Korea's December Industrial Production 4.3% m/m (last 5.3%); 6.2% yr/yr (last 6.3%). December Retail Sales 2.0% m/m (last -1.9%) and December Service Sector Output -0.4% m/m (last 2.1%)

  • Australia's Q4 PPI 1.3% qtr/qtr (expected 0.9%; last 1.1%); 3.7% yr/yr (last 2.9%)

  • Singapore's Q4 Unemployment Rate 2.4% (last 2.6%) and Q4 URA Property Index 5.0% qtr/qtr (last 5.0%)

  • Hong Kong's Q4 GDP 0.2% qtr/qtr (expected 0.8%; last 0.6%); 4.8% yr/yr (expected 4.7%; last 5.5%)


---Equity Markets---

  • Japan's Nikkei: +2.1% (-2.9% for the week)

  • Hong Kong's Hang Seng: -1.1% (-5.7% for the week)

  • China's Shanghai Composite: -1.0% (-4.6% for the week)

  • India's Sensex: -0.1% (-3.1% for the week)

  • South Korea's Kospi: +1.9% (-6.0% for the week)

  • Australia's ASX All Ordinaries: +2.1% (-3.0% for the week)

---FX---

  • USD/JPY: +0.2% to 115.61

  • USD/CNH: +0.1% to 6.3718

  • USD/INR: -0.2% to 75.05

Europe: DAX -2.3%, FTSE -1.5%, CAC -2.2%

Major European indices trade lower across the board. France and Spain reported better than expected GPD growth in Q4 while Germany's economy contracted more than expected. Germany's economy minister said that 2023 growth is expected to slow to 2.3% from 3.6% growth expected in 2022. Italy's parliament entered the fifth day of voting for president. Volvo's Q4 profit beat expectations, though the company's results were down yr/yr.

  • In economic data:

  • Eurozone's January Business and Consumer Survey 112.7 (expected 114.5; last 113.8). December Private Sector Loans 4.1% yr/yr (expected 4.2%; last 4.2%)

  • Germany's Q4 GDP -0.7% qtr/qtr (expected -0.3%; last 1.7%); 1.4% yr/yr (expected 1.8%; last 2.9%). December Import Price Index 0.1% m/m (expected 2.0%; last 3.0%); 24.0% yr/yr (expected 26.4%; last 24.7%)

  • France's Q4 GDP 0.7% qtr/qtr (expected 0.5%; last 3.1%); 5.4% yr/yr (last 3.5%). December Consumer Spending 0.2% m/m, as expected (last 0.9%). December PPI 1.0% m/m (last 3.9%)

  • Italy's January Business Confidence 113.9 (expected 115.3; last 115.0) and Consumer Confidence 114.2 (expected 116.5; last 117.7). December PPI 0.8% m/m (last 1.2%); 22.6% yr/yr (last 22.2%)

  • Spain's Q4 GDP 2.0% qtr/qtr (expected 1.4%; last 2.6%); 5.2% yr/yr (expected 4.5%; last 3.4%). January Business Confidence 6.7 (expected 5.5; last 5.9)


---Equity Markets---

  • STOXX Europe 600: -1.6% (-2.5% week-to-date)

  • Germany's DAX: -2.3% (-2.8% week-to-date)

  • U.K.'s FTSE 100: -1.5% (-0.7% week-to-date)

  • France's CAC 40: -2.2% (-2.8% week-to-date)

  • Italy's FTSE MIB: -1.9% (-2.6% week-to-date)

  • Spain's IBEX 35: -1.8% (-1.7% week-to-date)

---FX---

  • EUR/USD: -0.1% to 1.1137

  • GBP/USD: UNCH at 1.3381

  • USD/CHF: +0.2% to 0.9324


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