Early premarket gappers
- Gapping up:
- DOCU +12.2%, CMTL +7.7%, BHR +5.8%, PHR +5%, BBWI +4.6%, AVGO +4%, MANU +3%, MYGN +2.6%, FG +2.4%, ECL +2%, DNUT +2%, MTN +1.7%, WPC +1.6%, PENN +1.5%, EXK +1.5%, GH +1.4%, TRN +1.4%, RH +1.1%, DEI +1%, TSM +1%, ZTS +0.8%, UTZ +0.7%, TRTN +0.7%, MDT +0.6%, CMRX +0.5%, EIX +0.5%
- Gapping down:
- AUTL -27.4%, LULU -7.1%, CURV -6.3%, ICPT -4.4%, ALNY -4.1%, LI -4.1%, ASX -3.1%, EXEL -2.1%, RXDX -1.9%, COO -1.9%, NRDY -1.5%, TTE -1.1%, ABC -1.1%, WBA -0.9%, REPL -0.8%
>>> Up
* ABN AMRO GDRs Raised to Outperform at Credit Suisse; PT 17 euros
* Amadeus Raised to Buy at Goldman; PT 70 euros
* Estee Lauder PT Raised to $270 from $230 at Jefferie
* Mears Raised to Buy at Investec; PT 239 pence (+)
* InterContinental Hotels Raised to Buy at Peel Hunt
* PolyPeptide Group Raised to Buy at Baader Helvea
* PolyPeptide Group Raised to Buy at Baader Helvea
* Workspace Raised to Overweight at JPMorgan; PT 650 pence
>>> Down
* Air Liquide Cut to Underperform at Jefferies; PT 124 euros
>>> Down
* Air Liquide Cut to Underperform at Jefferies; PT 124 euros
* Alcoa Cut to Equal-Weight at Morgan Stanley; PT $56
* Apple Cut to Sell at Aletheia Capital; PT $118
* Assura Cut to Neutral at JPMorgan; PT 62 pence
* CaixaBank Cut to Neutral at Credit Suisse
* Equitable Holdings Cut to Hold at Jefferies; PT $34
* Fidelity National Cut to Hold at Jefferies; PT $75
* Inmobiliaria Colonial Cut to Neutral at JPMorgan; PT 7 euros
* Julius Baer Cut to Neutral at Credit Suisse
* LondonMetric Cut to Neutral at JPMorgan; PT 205 pence
* Lundin Mining Cut to Market Perform at BMO; PT C$8
* MetLife Cut to Hold at Jefferies; PT $82
* UBS Group Cut to Neutral at Credit Suisse
* WDP Cut to Neutral at JPMorgan; PT 30 euros
* Worldline Cut to Neutral at JPMorgan; PT 55 euros
>>> Initiation
>>> Initiation
* Atenor Re-Initiated Hold at KBC Securities; PT 57 euros (+)
* Cellavision Rated New Buy at Nordea; PT 275 kronor
* Gurit Rated New Neutral at Credit Suisse; PT 98 Swiss francs
* Lagercrantz Rated New Sell at SEB Equities; PT 96 kronor
* Lagercrantz Rated New Sell at SEB Equities; PT 96 kronor
* Marks Electrical Group Rated New Buy at Shore Capital
* Schweiter Rated New Outperform at Credit Suisse
* Topdanmark Rated New Underperform at Jefferies; PT 270 kroner
* Tryg Rated New Hold at Jefferies; PT 155 kroner
* Vitec Software Group Resumed Buy at Nordea; PT 466 kronor (+)
>>> Call
>>> Call
* Capita Overweight Again at Barclays With Asset Sales Under Way
* CS Overweight on EU Banks for 2023; Cuts UBS, Upgrades ABN Amro
* Citi’s Manthey Says European Equities Pricing 2023 Earnings Drop
* EU Chemicals Face Tough 2023, Air Liquide Double Cut: Jefferies
* IHG Raised to Buy as Peel Hunt Says Share Price ‘Left Behind’
* JPMorgan’s Kolanovic Says Sell Energy Stocks With Oil Gap Wide
* JPMorgan More Constructive on European Real Estate in 2023
* Morgan Stanley’s Wilson Sees Value Stocks at Risk in a Downturn
* Morgan Stanley Says China Stocks to Outperform Global Peers
* Worldline Downgraded at JPMorgan, Adyen Now Top Payments Pick
China’s disappearing data stokes fears of hidden Covid wave
Low official case number and death toll puzzle analysts after Beijing lifts Covid testing requirements
China is starting to under-report coronavirus cases and fatalities, which experts warn is obscuring the scale and severity of the health crisis just as the world’s most populous country enters its deadliest phase of the pandemic.
Official statistics on Friday revealed no new deaths and only 16,363 locally transmitted coronavirus cases in China, less than half the peak caseload reported last month.
That is despite a stunning U-turn over the past week to relax President Xi Jinping’s heavy-handed pandemic controls, which means the virus is certain to spread.
The sweeping changes to Xi’s zero-Covid policy allow asymptomatic or mild cases to isolate at home rather than in centralised quarantine, and slashed China’s mass testing and contact tracing requirements.
The sudden reversal comes came weeks after Covid-19 cases hit a record high of more than 40,000 a day, with every region of the country reporting an Omicron outbreak.
Despite the official numbers suggesting the caseload had halved, Raymond Yeung, China economist at ANZ bank, said that on-the-ground observations indicated some cities, including Baoding, in the northern province of Hebei, already had “high infection numbers”. More big cities, he said, would soon endure similar levels of infections.
“Like Hong Kong, the actual infection data will no longer be informative. As the ‘official’ infection figures decline, the government can eventually claim their success against the virus,” Yeung said.
The situation echoes the dearth of official information during the disastrous initial outbreak in Wuhan nearly three years ago. Local officials and analysts warned that the reduced testing, as well as gaps in reporting of both cases and deaths, would make it harder to assess the risk to the world’s second-biggest economy.
“The behaviour of case numbers is very similar to 2020, where we had one [to] two weeks with genuine case numbers, before the veil was drawn,” said Rodney Jones, principal at Wigram Capital Advisors, an Asia-focused macroeconomic advisory group.
“We have no idea whether we will see actual case data again, and whether the sharp downshift in cases reflects reduced testing . . . or political management of the case data,” Jones added.
A critical missing piece of information is the rate of positive tests, which is important for determining actual infection. Nor is the real-time effective R value published, depriving observers of a vital measure of the rate at which the disease is spreading.
There are also discrepancies between Chinese regions in how cause of death is determined and the definition of “symptomatic”. In some cities, including Shanghai, a chest scan is required before Covid diagnosis.
Xi’s decision to loosen strictures has led to fears of an unparalleled wave of infections and a sharply rising death toll. Wigram has projected as many as 1mn deaths over the winter months.
China has reported 5,235 coronavirus deaths, with the latest additions on Sunday. More than 4,600 fatalities were reported in the first few months of 2020 and about 600 during Shanghai’s lockdown in April and May this year.
One provincial health official said deaths would “normally” only be recorded if a person tested positive before seeking medical attention. They added that many colleagues were questioning the veracity of the official death toll after authorities concealed fatality data in 2020.
“Those who present with symptoms but have not had time to be tested and die from an underlying disease, these would be missed,” the official said.
An intensive care unit doctor in Guangzhou, a city in southern China, said the data’s usefulness was complicated by the fact that many seriously ill patients were avoiding hospitalisation. Others were unable to obtain the PCR test result required for hospital treatment because of reduced testing.
Chinese officials and state media said the policy changes were designed to “contain the epidemic in a more science-based and targeted manner”.
Public health messaging has also intensified to encourage vaccinations among the nearly 90mn elderly Chinese who remain inadequately protected from the virus.
- Amadeus (AI3A TH) +3.6%
- Amadeus Raised to Buy at Goldman; PT 70 euros
- BAT (BMT TH) +1.7%
- Rio Tinto (RIO1 TH) +1.6%
- ABN Amro (AB2 TH) +1.6%
- CS Overweight on EU Banks for 2023; Cuts UBS, Upgrades ABN Amro
- Equinor (DNQ TH) -0.9%
- Vestas (VWSB TH) -1.1%
- Air Liquide (AIL TH) -1.8%
- EU Chemicals Face Tough 2023, Air Liquide Double Cut: Jefferies
- Carl Zeiss Meditec (AFX TH) -3.7%
- Carl Zeiss Meditec FY Ebit Beats Estimates
DAX:
- Adidas (ADS TH) -0.2%
- Watch Adidas, Puma as Lululemon Profit, Sales Outlook Fall Short
MDAX:
- HelloFresh (HFG TH) +1%
- Evotec SE (EVT TH) +1%
- Carl Zeiss Meditec (AFX TH) -3.1%
- Carl Zeiss Meditec FY Ebit Beats Estimates
SDAX:
- Uniper (UN01 TH) +2.3%
- PNE AG (PNE3 TH) +1.9%
- 1&1 (DRI TH) +1.9%
- AUTO1 (AG1 TH) +1.8%
- DIC Asset (DIC TH) +1.7%
Stocks in Asia followed Wall Street higher as investors looked to inflation readings for clues on the path of interest rate hikes. A benchmark of Asia equities headed for a sixth weekly gain, the longest such stretch in two years. US futures moved higher ahead of producer price data later Friday and after the S&P 500 notched its first advance this month. Chinese shares rose as factory-gate prices contracted while consumer inflation eased, giving the nation’s central bank some room to ease policy to foster economic recovery from the impact of the pandemic. Investors are taking heart from any signs of softness in prices that may allow policymakers around the world to be less hawkish and more supportive of economic growth. The dollar dropped versus most of its major counterparts, extending Thursday’s move when geopolitics-driven appetite for haven investments faded. The offshore yuan slightly strengthened. Treasury yields declined, with 10-year rate hovering near 3.45%. Government bond yields also moved lower in Australia while Japan’s benchmark 10-year yield fell by half a basis point. Oil rose in Asia, but headed for a weekly drop of nearly 10% after a volatile session on Thursday on concerns over economic outlook. Still, strategists from Morgan Stanley to JPMorgan Chase & Co. have warned investors against piling back into risk on hopes the Fed is getting close to pivoting to easier policy. US After Hours DOCU +8.6%, AVGO +3.2%, RH +2.8% higher on earnings; COO -9.1%, LULU -6.1%, CHWY -2.4% lower on earnings.
Nikkei +1.18% Hang Seng +2.09% CSI +0.99% Shanghai +0.30% Shenzen +0.56%
Eur$ 1.0581 CNH 6.9544 +0.20% CNY 6.9560 +0.16% JPY 135.95 GBP 1.2262 CHF 0.9335 RUB 62.7386 TRY 18.6422 WTI$ 72 +0.77% Gold 1,797 +0.44% BTC 17,210 +0.15% ETH 1,281.50 +0.25%
S&P +0.23% Nasdaq +0.31% EuroStoxx +0.30% FTSE +0.13% Dax +0.27% SMI +0.40%
Macro :
- JPMorgan’s Kolanovic Says Sell Energy Stocks With Oil Gap Wide
- Morgan Stanley’s Wilson Sees Value Stocks at Risk in a Downturn
- Morgan Stanley’s Wilson Sees Value Stocks at Risk in a Downturn
- Morgan Stanley Says China Stocks to Outperform Global Peers
Keep an eye on :
Keep an eye on :
- ABBN SW : ABB Bribe Scheme Nearly Collapsed Over Division of Loot, US Says
- ADS GY : Lululemon's Weak Gross Margin Causes Conversion Concern: React
- ADJ GY : Adler Bondholder Group Plans to Block Key Restructuring Deal
- AF FP : Air France-KLM Proposes Extending Couderc’s Mandate as Chair
- BICO SS : BICO Issues Shares to Sartorius, Agrees on Strategic Cooperation
- CSGN SW : Credit Suisse Raises $4.3 Billion Capital After Wild Ride
- LOAD LN : Aggreko Agrees to Buy Crestchic For 401p per Share
- EDF FP : Fortum, EDF Sign Agreement to Explore New Nuclear Opportunities
- ENX FP : *EURONEXT MAKES NO CHANGES TO CAC 40 INDEX COMPOSITION IN REVIEW
- FORTUM FH : Fortum, EDF Sign Agreement to Explore New Nuclear Opportunities
- EMG LN : Man Group Announces Share Buyback Program of Up to $125M
- MBG GY : Thai Government to Grant Tax Benefits to Mercedes-Benz’s EVs
- MTRO LN : Metro Bank Says BOE Agreed Temporary Adjustment for Tier 2 Notes
- PEAN SW : Peach Property Reduces Debt Via CHF63M Additional Equity Capital
- RIO LN : Rio Considers Renewable Generation to Power Smelter: Newsroom
- SAN FP : Revolution Medicines Slides as Sanofi Ends Collaboration Deal
- SAM SM : FCA Fines Santander £107.7M for Anti-Money Laundering Failures
- SAS SS : SAS Gets Approval for Collective Bargaining Agreements W/ Union
- STATT NO : Statt Torsk Offering of 23.5m Shares Prices at NOK1.70/Share
- STM FP : TSMC Revenue Rises 50% in November Despite Covid Challenges
- TSLA US : Musk Bankers Mull Tesla Margin Loan to Cut Risky Twitter Debt
- FR FP : Valeo Appoints Michel as Chairman to Replace Aschenbroich
- VNA GY : Vonovia: Clara Streit to Take Over as Supervisory Board Chair
- VOW GY : VW May Pick EV Battery Plant Site in East EU Within Months: CTK
- WBD IM : Webuild Provides Wages for Clough Employees on Hydro Project
- ZURN SW : Zurich Said to Be Frontrunner to Buy MetLife’s Malaysia Insurer
Stocks in Asia followed Wall Street higher as investors looked to inflation readings for clues on the path of interest rate hikes. A benchmark of Asia equities headed for a sixth weekly gain, the longest such stretch in two years. US futures moved higher ahead of producer price data later Friday and after the S&P 500 notched its first advance this month. Chinese shares rose as factory-gate prices contracted while consumer inflation eased, giving the nation’s central bank some room to ease policy to foster economic recovery from the impact of the pandemic. Investors are taking heart from any signs of softness in prices that may allow policymakers around the world to be less hawkish and more supportive of economic growth. The dollar dropped versus most of its major counterparts, extending Thursday’s move when geopolitics-driven appetite for haven investments faded. The offshore yuan slightly strengthened. Treasury yields declined, with 10-year rate hovering near 3.45%. Government bond yields also moved lower in Australia while Japan’s benchmark 10-year yield fell by half a basis point. Oil rose in Asia, but headed for a weekly drop of nearly 10% after a volatile session on Thursday on concerns over economic outlook. Still, strategists from Morgan Stanley to JPMorgan Chase & Co. have warned investors against piling back into risk on hopes the Fed is getting close to pivoting to easier policy. US After Hours DOCU +8.6%, AVGO +3.2%, RH +2.8% higher on earnings; COO -9.1%, LULU -6.1%, CHWY -2.4% lower on earnings.
Nikkei +1.18% Hang Seng +2.09% CSI +0.99% Shanghai +0.30% Shenzen +0.56%
Eur$ 1.0581 CNH 6.9544 +0.20% CNY 6.9560 +0.16% JPY 135.95 GBP 1.2262 CHF 0.9335 RUB 62.7386 TRY 18.6422 WTI$ 72 +0.77% Gold 1,797 +0.44% BTC 17,210 +0.15% ETH 1,281.50 +0.25%
S&P +0.23% Nasdaq +0.31% EuroStoxx +0.30% FTSE +0.13% Dax +0.27% SMI +0.40%
Macro :
- JPMorgan’s Kolanovic Says Sell Energy Stocks With Oil Gap Wide
- Morgan Stanley’s Wilson Sees Value Stocks at Risk in a Downturn
- Morgan Stanley’s Wilson Sees Value Stocks at Risk in a Downturn
- Morgan Stanley Says China Stocks to Outperform Global Peers
Keep an eye on :
Keep an eye on :
- ABBN SW : ABB Bribe Scheme Nearly Collapsed Over Division of Loot, US Says
- ADS GY : Lululemon's Weak Gross Margin Causes Conversion Concern: React
- ADJ GY : Adler Bondholder Group Plans to Block Key Restructuring Deal
- AF FP : Air France-KLM Proposes Extending Couderc’s Mandate as Chair
- BICO SS : BICO Issues Shares to Sartorius, Agrees on Strategic Cooperation
- CSGN SW : Credit Suisse Raises $4.3 Billion Capital After Wild Ride
- LOAD LN : Aggreko Agrees to Buy Crestchic For 401p per Share
- EDF FP : Fortum, EDF Sign Agreement to Explore New Nuclear Opportunities
- ENX FP : *EURONEXT MAKES NO CHANGES TO CAC 40 INDEX COMPOSITION IN REVIEW
- FORTUM FH : Fortum, EDF Sign Agreement to Explore New Nuclear Opportunities
- EMG LN : Man Group Announces Share Buyback Program of Up to $125M
- MBG GY : Thai Government to Grant Tax Benefits to Mercedes-Benz’s EVs
- MTRO LN : Metro Bank Says BOE Agreed Temporary Adjustment for Tier 2 Notes
- PEAN SW : Peach Property Reduces Debt Via CHF63M Additional Equity Capital
- RIO LN : Rio Considers Renewable Generation to Power Smelter: Newsroom
- SAN FP : Revolution Medicines Slides as Sanofi Ends Collaboration Deal
- SAM SM : FCA Fines Santander £107.7M for Anti-Money Laundering Failures
- SAS SS : SAS Gets Approval for Collective Bargaining Agreements W/ Union
- STATT NO : Statt Torsk Offering of 23.5m Shares Prices at NOK1.70/Share
- STM FP : TSMC Revenue Rises 50% in November Despite Covid Challenges
- TSLA US : Musk Bankers Mull Tesla Margin Loan to Cut Risky Twitter Debt
- FR FP : Valeo Appoints Michel as Chairman to Replace Aschenbroich
- VNA GY : Vonovia: Clara Streit to Take Over as Supervisory Board Chair
- VOW GY : VW May Pick EV Battery Plant Site in East EU Within Months: CTK
- WBD IM : Webuild Provides Wages for Clough Employees on Hydro Project
- ZURN SW : Zurich Said to Be Frontrunner to Buy MetLife’s Malaysia Insurer
>>> Up
* ABN AMRO GDRs Raised to Outperform at Credit Suisse; PT 17 euros
* Amadeus Raised to Buy at Goldman; PT 70 euros
* Estee Lauder PT Raised to $270 from $230 at Jefferie
* InterContinental Hotels Raised to Buy at Peel Hunt
* PolyPeptide Group Raised to Buy at Baader Helvea
* PolyPeptide Group Raised to Buy at Baader Helvea
* Workspace Raised to Overweight at JPMorgan; PT 650 pence
>>> Down
* Air Liquide Cut to Underperform at Jefferies; PT 124 euros
>>> Down
* Air Liquide Cut to Underperform at Jefferies; PT 124 euros
* Alcoa Cut to Equal-Weight at Morgan Stanley; PT $56
* Apple Cut to Sell at Aletheia Capital; PT $118
* Assura Cut to Neutral at JPMorgan; PT 62 pence
* CaixaBank Cut to Neutral at Credit Suisse
* Equitable Holdings Cut to Hold at Jefferies; PT $34
* Fidelity National Cut to Hold at Jefferies; PT $75
* Inmobiliaria Colonial Cut to Neutral at JPMorgan; PT 7 euros
* Julius Baer Cut to Neutral at Credit Suisse
* LondonMetric Cut to Neutral at JPMorgan; PT 205 pence
* Lundin Mining Cut to Market Perform at BMO; PT C$8
* MetLife Cut to Hold at Jefferies; PT $82
* UBS Group Cut to Neutral at Credit Suisse
* WDP Cut to Neutral at JPMorgan; PT 30 euros
* Worldline Cut to Neutral at JPMorgan; PT 55 euros
>>> Initiation
>>> Initiation
* Cellavision Rated New Buy at Nordea; PT 275 kronor
* Gurit Rated New Neutral at Credit Suisse; PT 98 Swiss francs
* Lagercrantz Rated New Sell at SEB Equities; PT 96 kronor
* Lagercrantz Rated New Sell at SEB Equities; PT 96 kronor
* Marks Electrical Group Rated New Buy at Shore Capital
* Schweiter Rated New Outperform at Credit Suisse
* Topdanmark Rated New Underperform at Jefferies; PT 270 kroner
* Tryg Rated New Hold at Jefferies; PT 155 kroner
>>> Call
>>> Call
* Capita Overweight Again at Barclays With Asset Sales Under Way
* CS Overweight on EU Banks for 2023; Cuts UBS, Upgrades ABN Amro
* Citi’s Manthey Says European Equities Pricing 2023 Earnings Drop
* EU Chemicals Face Tough 2023, Air Liquide Double Cut: Jefferies
* IHG Raised to Buy as Peel Hunt Says Share Price ‘Left Behind’
* JPMorgan’s Kolanovic Says Sell Energy Stocks With Oil Gap Wide
* JPMorgan More Constructive on European Real Estate in 2023
* Morgan Stanley’s Wilson Sees Value Stocks at Risk in a Downturn
* Morgan Stanley Says China Stocks to Outperform Global Peers
* Worldline Downgraded at JPMorgan, Adyen Now Top Payments Pick