- Scout24 SE (G24 TH) +2.1%
- Scout24 SE Raised to Overweight at JPMorgan; PT 71 euros
- Mowi (PND TH) +1.6%
- RELX (RDEB TH) +1.1%
- Direct Line (D1LN TH) +1%
- Banco Santander (BSD2 TH) +0.9%
- UniCredit (CRIN TH) +0.8%
- ASML (ASME TH) +0.8%
- Porsche SE (PAH3 TH) +0.8%
- Symrise (SY1 TH) +0.7%
- Symrise Raised to Hold at SocGen; PT 130 euros
- Shell (R6C TH) -0.6%
- Equinor (DNQ TH) -0.7%
- Maersk (DP4B TH) -1.4%
- Deutsche Bank (DBK TH) -2%
- Watch European Bank Stocks as Citi Sees Trading Revenue Easing
- Deutsche Bank Alerted by DOJ to Possible Breach of Criminal Deal
DAX:
- Porsche (PAH3 TH) +1%
- HelloFresh (HFG TH) +0.9%
- Siemens Energy (ENR TH) +0.8%
- Symrise (SY1 TH) +0.8%
- Symrise Raised to Hold at SocGen; PT 130 euros
- Adidas (ADS TH) -0.4%
- Nike Sues Adidas, Seeks to Ban U.S. Imports of Primeknit Shoes
- Deutsche Bank (DBK TH) -1.6%
- Deutsche Bank Alerted by DOJ to Possible Breach of Criminal Deal
MDAX:
- Scout24 (G24 TH) +2.1%
- Scout24 SE Raised to Overweight at JPMorgan; PT 71 euros
- AUTO1 (AG1 TH) Flat
- AUTO1 Cut to Neutral at JPMorgan; PT 28 euros
SDAX:
- Metro (B4B TH) +1%
- Salzgitter (SZG TH) -2.3%
- Salzgitter Cut to Underweight at Morgan Stanley; PT 30.70 euros
Most Asian stocks rose Thursday as traders bet the global recovery will be resilient to the new virus strain. Treasuries were stable after declining.
MSCI Inc.’s gauge of Asia Pacific equities advanced for a third day, led by Hong Kong. U.S. contracts fluctuated after the S&P 500 and the technology-heavy Nasdaq 100 extended a rally.
China’s central bank set its reference rate for the yuan at a weaker-than-expected level against the dollar after the currency’s advance to the highest since 2018. The British pound dropped to the lowest this year after fresh restrictions as the omicron strain spreads. The dollar and crude climbed, while the 10-year Treasury yield held above 1.50% and the curve steepened.
Pfizer Inc. and BioNTech SE said initial lab studies show a third dose of their Covid-19 vaccine may be needed to neutralize the omicron variant.
The global equity rally will be tested as traders expect more volatility until there is more clarity on the omicron variant’s threat to the economy, and ahead of U.S. consumer inflation numbers this week and a Federal Reserve meeting next week that may provide clues on the pace of tapering and interest rate increases.
In China, consumer prices rose at the fastest pace since August 2020. Meanwhile, the nation’s indebted developers remain under scrutiny. A group of Kaisa Group Holdings Ltd. bondholders is close to signing non-disclosure agreements with the developer in a move that would pave the way for discussions around a potential financing deal for the beleaguered firm.
On the virus front, the U.K. tightened rules advising people to work from home and mandating the use of so-called vaccine passports in large venues. Denmark introduced a light version of the lockdown it had last winter.
Nikkei -0,30% Hang Seng +1,01% CSI +1,84% Shanghai +1,07% Shenzen +0,90%
Eur$ 1,1330 CNH 6,3433 CNY 6,3454 JPY 113,62 GBP 1,3210 CHF .9210 RUB 73,56 TRY 13,67 WTI$ 72,92 +0,60% Gold 1,785,70 +1,1% BTC 49,800 - 800 ETH 4,380 - 40
S&P -0,13% Nasdaq -0,14% EuroStoxx +0,03% FTSE +0,11% Dax +0,08% SMI +0,07%
Macro :
- Chinese Shares Rally After Factory Inflation Slows: Macro Squawk
Macro :
- Chinese Shares Rally After Factory Inflation Slows: Macro Squawk
- Strategists’ 2022 Forecasts Diverge by Second-Most in 10 Years
Keep an eye on :
Keep an eye on :
- ABN NA : ABN Amro to Sell Head Office to Victory Group for EU765m
- ADS GY : Nike Sues Adidas, Seeks to Ban U.S. Imports of Primeknit Shoes
- ALO FP : UK to Award GBP2.8B HS2 Contract to Alstom, Hitachi: Times
- AML LN : Aston Martin’s Valkyrie Model Plagued by Electronics Issues
- ARAMI FP : Aramis Raises 2022 Objectives, Sees Rev. Above EU1.6b
- ADPZ NA : APG Buys 16.8% Stake in Ausgrid from AustralianSuper
- BARC LN : Barclays Plots Asia Revival With Strategic Hires After Hiatus
- BCART BB : Biocartis’s PCR Tests Successfully Detect Omicron Variant-
- BOLS NA : Lucas Bols to Buy Tequila Partida Brand
- DBK GY : Deutsche Bank Alerted by DOJ to Possible Breach of Criminal Deal
- DB1 GY : Deutsche Boerse Extends CFO Pottmeyer’s Mandate by Three Years
- DIC GY : TPG Real Estate Sells Three Property Assets to DIC for ~EU267M
- EDF FP : France Eyes New Steps to Ease Pain of Electric Prices: Figaro
- ENGI FP : Engie Names Pierre-François Riolacci as CFO
- EQS SS : EQT Agrees to Buy 20% Stake in Denmark’s 3Shape
- G IM : Caltagirone Generali Call Options at Low Strike Price: Stampa
- GETIB SS : Getinge Settles Mesh Litigation, Makes New SEK600m Provision
- IBE SM : *NEW MEXICO PRC CHAIR SAYS IN FAVOR OF DENYING PNM-AVANGRID DEAL
- IDEA LN : Ideagen Offers GBP100m Shares at GBp270/Share
- INTC US : Intel Fights Ban on Chipmaking Compound, Warning of Shortages
- INTC US : Intel Fights Ban on Chipmaking Compound, Warning of Shortages
- ITP FP : Interparfums Sees FY Operating Margin 16%, Saw 15% to 16%
- INWI SS : Inwido Sets Revenue Target of SEK20 Billion in 2030
- MMB FP : Lagardere Fully Repays EU465M Govt-Backed Loan Before Maturity
- NOVN SW : Novartis: Positive Results From Year Two of Phase III of Beovu
- NSI NA : NSI Extends Green Revolving Credit Facility of EU300M
- NYR BB : Trafigura to Study $537 Million Green Hydrogen Plan in Australia
- PEXIP NO : Pexip Sees Return to Profitable Growth During 2023
- QIA GY : Qiagen, Denovo Partner on Lymphoma Companion Diagnostic Test
- SEV FP : Cleanaway’s Purchase of Some Suez’s Waste Assets Cleared by ACCC
- SMCP FP : Glas Says Court Grants Request to Convene SMCP General Meeting
- SSE LN : SSE Digs In Against Elliott’s Push to Split Off Renewables
- TXGN SW: TX Group to Distribute CHF135M to Holders as Special Dividend
- DG FP : Vinci Concessions, Eiffage to Offer EU27/Share for SMTPC
>>> Up
* Carmila Raised to Buy at SocGen; PT 14.90 euros
* CRH Raised to Equal-Weight at Barclays; PT 45 euros
* Microsoft Raised to Buy at President Capital Management; PT $380
* Polymetal Raised to Overweight at Morgan Stanley; PT 1,650 pence
* Rio Tinto Raised to Overweight at Morgan Stanley
* Scout24 SE Raised to Overweight at JPMorgan; PT 71 euros
* Symrise Raised to Hold at SocGen; PT 130 euros
* Temenos Raised to Overweight at JPMorgan
>>> Down
* AUTO1 Cut to Neutral at JPMorgan; PT 28 euros
* Kahoot Cut to Neutral at JPMorgan; PT 49 kroner
* NOS Cut to Hold at Deutsche Bank; PT 4 euros
* Rockhopper Exploration Raised to Buy at Panmure Gordon
* Salzgitter Cut to Underweight at Morgan Stanley; PT 30.70 euros
* Schibsted Cut to Neutral at JPMorgan; PT 438 kroner
* Telenet Cut to Hold at Deutsche Bank; PT 42 euros
* Umicore Cut to Underperform at Jefferies; PT 33 euros
* Uniper Cut to Hold at Nord/LB; PT 40 euros
* Vidrala Cut to Hold at Grupo Santander; PT 97.70 euros
>>> Initiation
* Intercos Rated New Equal-Weight at Morgan Stanley; PT 17 euros
* Intercos Rated New Hold at Jefferies; PT 16 euros
* TSMC ADRs Rated New Buy at DBS Bank
* Volvo Cars Rated New Hold at HSBC; PT 80 kronor
* Volvo Cars Rated New Neutral at Goldman; PT 78 kronor
* Volvo Cars Rated New Neutral at JPMorgan; PT 85 kronor
* Volvo Cars Rated New Sell at Stifel; PT 61 kronor
* Volvo Cars Rated New Hold at Carnegie; PT 80 kronor
* Volvo Cars Rated New Buy at Kepler Cheuvreux; PT 90 kronor
* Volvo Cars Rated New Neutral at Exane; PT 87 kronor
* Wereldhave Rated New Hold at ING; PT 11.50 euros
>>> Call
* Bernstein Expects VW to Lift 5-Yr Spending Plan to EU160 Bln: HB
* Diageo Gets Rare Underperform at RBC as Targets Questioned (1)
Closing Stock Market SummaryThe stock market closed higher for the third straight day on Wednesday, albeit at a more modest pace. The S&P 500 gained 0.3% and came up short of a closing record high, while the Nasdaq Composite (+0.6%) and Russell 2000 (+0.8%) outperformed in percentage terms. The Dow Jones Industrial Average increased just 0.1%.
Eight of the 11 S&P 500 sectors finished in positive territory, although no sector gained more than 1.0%. The communication services sector led the advance with a 0.8% gain, while the financials (-0.5%), consumer staples (-0.4%) and utilities (-0.1%) sectors closed lower.
Concerns about the Omicron variant were further allayed after Pfizer (PFE 51.40, -0.32, -0.6%) and BioNTech (BNTX 291.94, -10.75, -3.6%) said preliminary data suggested that three doses of their current vaccine neutralize the Omicron variant and that two doses protect against severe disease.
The market's rally in the prior two days was attributed to optimism on the Omicron variant, so the ability for the market to hold steady on good Omicron news today was an encouraging development for buyers. What's more, news that lawmakers are moving closer to raising the debt ceiling tempered another area of concern.
Travel stocks like airlines and cruise lines were among the biggest gainers in the S&P 500, but Apple (AAPL 175.08, +3.90, +2.3%), Tesla (TSLA 1068.96, +17.21, +1.6%), and Meta Platforms (FB 330.56, +7.75, +2.4%) were among the more influential gainers. AAPL set an all-time high.
Improved expectations for the economy were also manifested in higher prices for WTI crude ($72.43/bbl, +0.48, +0.7%) and copper ($4.395/lb, +0.05, +1.3%), as well as curve-steepening activity in the Treasury market.
The 10-yr yield rose three basis points to 1.51% after dipping below 1.43% prior to the Pfizer-BioNTech news. The 2-yr yield decreased one basis point to 0.68%, even though the vaccine news supported the case for the Fed to consider a faster taper plan. The U.S. Dollar Index fell 0.5% to 95.91.
The CBOE Volatility Index dropped below the 20.00 level (19.90, -1.99, -9.1%), as the continued resiliency in the market staved off hedging interest.
Reviewing Wednesday's economic data:
- Job openings increased to 11.033 million in October from a revised 10.602 million (from 10.438 million) in September.
- The weekly MBA Mortgage Applications Index increased 2.0% following a 7.2% decline in the prior week.
- Weekly crude oil inventories decreased by 240,000 barrels after decreasing by 910,000 barrels during the previous week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report and Wholesale Inventories for October on Thursday.
- S&P 500 +25.2% YTD
- Nasdaq Composite +22.5% YTD
- Dow Jones Industrial Average +16.8% YTD
- Russell 2000 +15.0% YTD
After Hours Summary: RH +11.2% jumps on strong earnings; CURV -23.3%, GME -3.9%, PATH -3.6% fall on earningsAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: RH +11.2%, NVEI +5.5% (reaffirms Q4 revenue guidance and long-term growth targets), UDMY +0.4%, PHR +0.3%, OXM +0.1% (also increases share repurchase authorization to $150 mln)
Companies trading higher in after hours in reaction to news: LIDR +1.3% (announces stock purchase agreement with Tumim Stone Capital for up to $125 mln), CARR +0.8% (increases dividend), NVTS +0.4% (opens new Design Center for GaN-based data centers), WPC +0.4% (increases dividend), NWN +0.1% (to purchase water and wastewater utilities of Far West Water & Sewer)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: CURV -23.3% (also CFO to retire; also announces $100 mln share repurchase auth), RENT -9.1%, GME -3.9%, PATH -3.6%, PERI -2.9% (raises FY21 and FY22 rev guidance; launches offering of $100 mln of its shares; also files mixed securities shelf offering), RNG -2.3% (reaffirms FY21 rev guidance; also announces COO is stepping down and appoints new Interim CFO)
Companies trading lower in after hours in reaction to news: TRIT -15.6% (provides update on independent audit of financials), LCID -7.1% (convertible notes offering), JCI -0.1% (increases dividend)