- The Central Bank of China kept one-year and five-year rates unchanged, at 3.45% and 4.25%, respectively. The Hang Seng Index (HSI) recorded another dismal session and slid sharply below 15,000 points, approaching the bottom of the panic sell-off in the fall of 2022. HSI records weakest January since 2016
- Shares of real estate developers including China Resources Land and technology stocks including Alibaba and Tencent lost the most heavily. Commerzbank's analysts stressed that the decision was in line with their expectations. They pointed out that foreign investment in China has suffered its biggest annual decline since 2009
- The mood in the Asian session was moderately optimistic (except of China). Japan's Nikkei and Topix gained more than 1.5%, both reaching new historic peaks. South Korea's KOSPI closed the session flat
- Benchmark European and U.S. stock futures are trading down slightly today in pre-opening trade.
- Friday's comments from the Fed's Daly suggest the bank won't rush to cut rates and doesn't want to risk another inflationary peak, though policy 'is currently in the right place'
- OIL has failed to hold near $79.5 per barrel and climb above the psychological resistance of $80. It is currently losing 1%, although over the weekend the U.S. command reported the destruction of more Huti targets. The U.S., along with the UK, is expected to continue to launch preemptive attacks and consider a plan, neutralizing Huti activities without simultaneously escalating the conflict in the region
- NATGAS extends declines after rolling over and losing more than 4% today.
- The US dollar is trading slightly lower. EURUSD gains 0.12%, the USDIDX dollar index is trading slightly down 0.7%
- There is weak sentiment in the precious metals market. Gold loses 0.3%, silver records a 1.8% decline
- Bitcoin loses 1.3% and is trading at $41,000. The mood of the cryptocurrency market is mostly weak, although the declines are not deep
- Morgan Stanley analysts named biopharma stocks as 'strength against an uncertain macro' and indicated that European biopharma stock prices should be supported in the near term due to its “undemanding valuations and a backdrop of challenging macro conditions and cyclical earnings risk”. The investment bank named 8 stocks with a ‘Buy’ rating in the sector, giving one of them a 119% upside potential.
- Berenberg analysts suggested that 4 anti-obesity drug stocks could soar, naming Novo Nordisk and Eli Lilly among others. The bank expects a combination of new clinical data and the expiry of Novo Nordisk patent for the active ingredient in first-generation GLP-1 drugs to unleash new opportunities for several generic drug manufacturers in Europe.
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