>>> TradeGate Pre-Market Indications

DAX:
  • Bayer (BAYN TH) +1.3%
    • Bayer Raised to Buy at MainFirst; PT 93 euros
  • Wirecard (WDI TH) +1%
  • Covestro (1COV TH) +1%
  • Infineon (IFX TH) +0.9%
  • Daimler (DAI TH) +0.9%
    • Daimler Cut to Sell at AlphaValue
  • SAP (SAP TH) -1.2%
    • SAP Raises 2020 Forecast as 4Q Operating Profit Meets Targets
MDAX:
  • Varta (VAR1 TH) +2.7%
  • Telefonica Deutschland (O2D TH) +1.5%
    • Telefonica Deutschland Raised to Overweight at JPMorgan
  • Aroundtown (AT1 TH) +1.4%
  • Evotec SE (EVT TH) +0.9%
  • K+S (SDF TH) -0.3%
    • K+S PT Cut to 10 euros from 14 euros at Deutsche Bank
SDAX:
  • Wacker Chemie (WCH TH) +2.7%
    • Wacker Chemie FY Prelim Ebit Loss EU540m on One-Time Charge (1)
  • TLG Immobilien (TLG TH) +2.6%
    • TLG Immobilien Prelim Fourth Quarter EPRA NAV/Shr About EU32.40
  • Aixtron (AIXA TH) +2%
  • Instone Real Estate (INS TH) +1.4%
  • Heidelberger Druck (HDD TH) +1%
  • Salzgitter (SZG TH) -1%
  • Leoni (LEO TH) -1.2%
  • Adler Real Estate (ADL TH) -2.6%

>>> Europe : Brokers Upgrades & Downgrades - 28th of January 202

>>> Up
* Arjo Raised to Buy at ABG; PT 52 kronor
* BAE Raised to Overweight at Barclays; PT 760 pence
* Bayer Raised to Buy at MainFirst; PT 93 euros
* Betsson Raised to Hold at ABG; PT 38 kronor
* Edenred Raised to Buy at Oddo BHF; PT 60 euros
* Givaudan PT Raised to 3,600 Swiss francs at Berenberg
* Standard Chartered Raised to Hold at Investec; PT 660 pence
* Telefonica Deutschland Raised to Overweight at JPMorgan

>>> Down
* Aker BP Cut to Hold at Jefferies; PT 300 kroner
* BRAbank ASA Cut to Hold at ABG; PT 0.70 kroner
* Daimler Cut to Sell at AlphaValue
* Diageo Cut to Underweight at JPMorgan; PT 2,800 pence
* K+S PT Cut to 10 euros from 14 euros at Deutsche Bank
* Victrex Cut to Reduce at HSBC; PT 1,975 pence

>>> Initiation
* Anima Holding Rated New Buy at HSBC; PT 5.80 euros
* Avast Rated New Sell at Peel Hunt; PT 405 pence
* Azimut Reinstated Buy at HSBC; PT 30.30 euros
* Banca Generali Reinstated Buy at HSBC; PT 36.30 euros
* Deutsche Boerse Reinstated Equal-Weight at Barclays
* Euronext Reinstated Overweight at Barclays; PT 86 euros
* Hipgnosis Songs Fund/The Rated New Hold at Jefferies
* Mediolanum Rated New Buy at HSBC; PT 10.10 euros
* Nexi Rated New Buy at Oddo BHF; PT 16 euros
* NVP Srl Rated New Buy at Fidentiis Equities; PT 5.25 euros

>>> Call
* Givaudan PT Raised at Berenberg on 2020 Organic Growth, Margins
* Wacker Neuson Offers Value, Self-Help Opportunities: Jefferies
* Morgan Stanley Sees Cheap Emerging Market Hedges Amid Virus Risk

>>> What to look at today - 28th of January 2020

Asian stocks and Chinese futures dropped again Tuesday, though contracts on U.S. equity benchmarks edged higher, as investors tried to gauge the magnitude of economic damage from the coronavirus.
Japanese shares headed for their worst back-to-back daily losses since last August’s trade-war worries. South Korean stocks slumped more than 3% as that market reopened after holidays, and Australia’s benchmark also underperformed. The yuan stabilized after a sharp slide Monday that left it at its weakest since December, and the yen gave up a sliver of recent gains.
Treasuries also steadied, and the sell-off in crude oil moderated. But Chinese stock futures fell almost 1% after a near-6% plunge Monday, as the country reported a further increase in both the death toll and number of infected people from the virus.
US After Hours XLRN jumps on positive clinical data; FFIV -4% and JNPR -2.2% are lower on disappointing EPS guidance

Nikkei -0.55% Hang Seng Closed CSI Closed Shanghai Closed Shenzen Closed

Eur$ 1.1020 CNH 6.9691 CNY 6.9109 JPY 109.06 GBP 1.3038 CHF 0.9709 RUB 62.8275 TRY 5.9432 WTI$ 53.16 +0.04%

S&P +0.69% EuroStoxx +0.44% FTSE +0.38% Dax +0.50% SMI +0.40%

Macro :
- Rare VIX Inversion Points to Potential End of U.S. Equity Rout
- Morgan Stanley Sees Cheap Emerging Market Hedges Amid Virus Risk

Keep an eye on :
- AIR FP : Airbus Reaches Accord With Authorities to Settle Bribery Cases
- AAF LN : Airtel Africa Third Quarter Revenue $883 Mln
- AVST LN : Avast Gets First Sell From Peel Hunt on ‘Existential Threats’
- BKIA SM : Bankia Fourth Quarter Loss Misses Lowest Estimate
- BNP FP : BNP Expands Nunn’s COO Role to Add Global Banking in Americas
- BP/ LN : Outgoing BP CEO Warns of Moving Too Fast on Climate Change
- COP GY : Nemaska Lithium Announces 29-Employee Layoff
- EQT SS : EQT Is Said to Weigh Sale or IPO of 1 Billion-Euro Implant Maker
- ERICB SS : Juniper Guidance Misses Estimates --> -2% in After Hours
- EVK GY : Evonik Defeats U.S. Antitrust Challenge to $625 Million Deal
- GALP PL : Galp 4Q Production Rises on Brazil; Refining Margin Narrows (1)
- GLPG NA : Galapagos Granted FDA Orphan Drug Status for Ziritaxestat
- IHP LN : IntegraFin Holders Michael Howard to Offer 8.5m Shrs
- ITP FP : Interparfums Boosts Full Year Operating Margin Forecast
- KOMN SW : Komax FY Rev. Misses Lowest Est. on ‘Sluggish’ Automotive Sector
- LAT FP : Latecoere: Swash Co-Opted to Board to Represent Searchlight
- LNZ AV : Lenzing Prelim Full Year Net Income Misses Lowest Estimate
- NKIA FH : Juniper Guidance Misses Estimates --> -2% in After Hours
- NOS PL : NOS Says Angelo Pauperio Was Named Chairman of the Board
- NOVN SW : Merck & Co. Sues Novartis to Block Copies of Antifungal Noxafil
- PHIA NA : Philips 4Q Comp. Sales Miss; 2020 Targets Maintained, to Review Options for Domestic Appliances Business
- RNO FP : Inside Nissan, a Renewed Push to Get Renault to Cut Stake
- SBRY LN : Sainsbury to Spend $1.3 Billion on 2040 Net Zero Carbon Target
- SAN FP : Sanofi Says FDA Accepts Dupixent for Priority Review
- SAP GY : SAP Raises 2020 Forecast as 4Q Operating Profit Meets Targets
- DIM FP : Sartorius Stedim Sees 2020 Rev. Change Ex-FX +11% To +14%
- SGSN SW : SGS Full Year Adjusted Operating Income Matches Estimates
- SRAIL SW : Stadler Rail Wins U.K. Contract Worth Around GBP700 Million
- SSABA SS : SSAB Fourth Quarter Adjusted Ebitda Loss Misses Lowest Estimate
- SMHN GY : Suess MicroTec Prelim Full Year Ebit Loss EU11.5 Mln
- SWEDA SS : Swedbank Costs Jump as Money-Laundering Scandal Takes Its Toll
- TELIA SS : Telia Won’t Do More Transformative M&A Near-Term, SVD Reports
- TEL NO : Telenor Grameenphone 4Q Rev NOK3.89B vs NOK3.48B Year Earlier
- TLG GY : TLG Immobilien Prelim Fourth Quarter EPRA NAV/Shr About EU32.40
- TC1 GY : Tele Columbus AG Names Daniel Ritz CEO
- FR FP : BorgWarner Is Said to Be in Talks to Acquire Delphi
- VEI NO : Veidekke Warns on Restructuring Costs, Loss Provisions for 4Q
- WCH GY : Wacker Chemie FY Prelim Ebit Loss EU540m on One-Time Charge
- ZO1 GY : Zooplus Prelim Full Year Sales +14%, Miss Lowest Estimate

>>> US After Hours Summary: XLRN jumps on positive clinical data;

After Hours Summary: XLRN jumps on positive clinical data; FFIV -4% and JNPR -2.2% are lower on disappointing EPS guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CR +4.9%, GGG +4.2%, IBTX +2.3%, BRO +2%, SANM +1%

Companies trading higher in after hours in reaction to news: XLRN +68.1% (Sotatercept achieves primary and secondary endpoints in Phase 2 trial), SURF +13.8% (FDA clears Investigational New Drug applications for its antibody candidates), LAUR +7.6% (to explore strategic alternatives for each of its businesses; reaffirms Q4 guidance)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: FFIV -4%, RMBS -3.2%, JNPR -2.2%, LRN -0.4%, ELS -0.2%, WHR -0.2%

Companies trading lower in after hours in reaction to news: AVH -21.9% (reports monthly metrics), EROS -4.8% (enters into equity investment facility; may elect to sell up to $50 mln of its A ordinary shares), ALEC -2.9% (announces stock offering), GO -2.9% (announces stock offering, reports upside prelim Q4 sales), DNLI -2.4% (files for $150 mln stock offering), ENDP -0.5% (begins shipping authorized generic version of Carafate oral suspension in the US)

>>> Asian Update

Asia Market Update: Asian indices trade lower amid the impact of coronavirus concerns and holidays; China equity futures fluctuate in Singapore as cases and deaths related to virus keep rising ; HK markets are expected to resume trading tomorrow (as scheduled)

General Trend:
- China markets reportedly to resume trading on Monday (Feb 3rd), market resumption delayed from Jan 31st (Friday) due to impact of coronavirus
- Few press articles have been seen today about impact of coronavirus on Macau’s casinos
- Fast Retailing (largest Nikkei component) said to expand temporary store closures in China amid impact of coronavirus (Japanese press)
- Trade-sensitive companies continue to decline in Japan; TOPIX Marine/Transportation and Iron/Steel indices drop over 1.5%
- Japanese chemical companies due to report earnings later today (Shin-etsu Chemical, Hitachi Chemical)
- Aussie equities decline after return from holiday, recent decline in commodity prices weighs on Resources and Energy indices
- Australia Q4 CPI data due on Wednesday, futures markets are pricing in an ~24% chance of a Feb 2020 RBA rate cut
- Australia business confidence turned negative in Dec (lowest reading since mid-2013); ,the survey has not showed clear evidence of a bushfire impact
- Companies expected to report earnings during the NY morning include Harley Davidson, Lear, Lockheed, MMM, Nucor, Pfizer, Pulte Homes, UTX and Xerox.

***Headlines/Economic Data***
Australia/New Zealand
-ASX 200 opened -1.0%
-(AU) AUSTRALIA DEC NAB BUSINESS CONFIDENCE: -2 V 0 PRIOR (lowest reading since mid-2013); BUSINESS CONDITIONS: 3 V 4 PRIOR
- OSH.AU Reports Q4 production 7.0 MMBOE v 7.4 y/y; Rev A$446.7M v 503.1M y/y
- (NZ) Reserve Bank of New Zealand (RBNZ) Assistant Gov Hawkesby: RBNZ supports the selection of the Official Cash Rate (OCR) as New Zealand’s fall-back benchmark interest rate; Global interest rate benchmarks, such as LIBOR, play a substantial role in the valuation of financial derivatives and contracts
- (NZ) New Zealand PM Ardern confirms Sept 19th as election day

Japan
-Nikkei 225 opened -0.9%
- (JP) Japan Fin Min Aso: Reduction in bond issuance shows fiscal stance; markets would be hit by any impression fiscal stance has changed - speaking in parliament
- (JP) Japan Econ Min Nishimura: Closely monitoring impact of virus on economy as 30% of foreign tourists to Japan are from China
- (JP) Japan PM Abe nominates Marusan Securities Economist Seiji Adachi for BOJ Board to replace Harada (dissenter)
- 7201.JP S&P warns that is Renault reduces stake it could result in ratings cut if it changes the dynamics of the alliance – press
- (JP) Japan MoF sells ¥399.2B v ¥400B indicated in 0.50% 40-year JGBs, highest accepted yield 0.40% v 0.46% prior, bid to cover: 2.86x v 3.50x prior

Korea
-Kospi opened -2.4%
- (KR) South Korea Fin Min Hong: Will fund efforts to contain coronavirus within existing budget; will promptly act to stabilize markets if needed; virus impacts on economy has been limited so far
- (KR) South Korea Agriculture Ministry: World Trade Organization (WTO) has approved South Korea's current 513% tariff rate on imported rice - Yonhap

China/Hong Kong
-Hang Seng closed; Shanghai Composite closed
- (CN) China Updates on Coronavirus: Total cases in China at 4,515 v 2,744 at the end of Jan 26th; Death toll 106 v 80 yesterday - China press
- (CN) China Hubei confirms 1,291 new cases of coronavirus; deaths total 100 (prior 76); Notes 2,714 total cases of the coronavirus [vs. 1,423 as of Jan 26th]
- 293.HK Spokesperson: Have started to offer unpaid leave option to pilots, received “substantial number of applications” for the offering

Other
- JBSS3.BR Signs MOU with WH Group to sell BRL3B of meat per year in the China market - press

North America
- AAPL Asks suppliers to make 10% more iPhones, 80M in H1 - Japan Press
- FDX S&P revises to Negative from Stable; Affirms BBB rating
- WHR Reports Q4 $4.75 v $4.30e, Rev $5.38B v $5.53Be
- XLRN Sotatercept achieved Primary and Secondary Endpoints in the PULSAR Phase 2 Placebo-Controlled Trial in Patients with Pulmonary Arterial Hypertension
- (IL) Leaks of Trump Middle East plan show he will offer Palestine a path to statehood - Washington Post

Europe
- (UK) EU's Barnier: Believes UK and EU will need much more time to reach a trade deal
- (DE) First case of the coronavirus has been confirmed in Germany - Press

***Levels as of 12:15ET***
- Hang Seng closed; Shanghai Composite closed; Kospi -3.2%; Nikkei225 -0.9%; ASX 200 -1.4%
- Equity Futures: S&P500 +0.5%; Nasdaq100 +0.6%, Dax +0.4%; FTSE100 +0.2%
- EUR 1.1025-1.1015; JPY 109.05-108.83; AUD 0.6763-0.6747; NZD 0.6550-0.6536
- Commodity Futures: Gold +0.1% at $1,579/oz; Crude Oil -0.2% at $53.02/brl; Copper +0.2% at $2.60/lb