By Swissquote Analysts
Johnson & Johnson's Covid-19 Vaccine Gets Green Light From CDC
Topic of the day
The U.S. Centers for Disease Control and Prevention signed off on adding Johnson & Johnson's newly authorized Covid-19 vaccine to the arsenal of preventive weapons against the coronavirus. CDC Director Rochelle P. Walensky gave the go-ahead Sunday after a panel of advisers voted in support of adults in the U.S. getting the one-dose vaccine. The Advisory Committee on Immunization Practices voted 12-0 in favor with one recusal. The steps concluded a review process before the shot reaches wider use, which is expected this week. "In the midst of this tragedy we do have some reason for optimism," said committee member Dr. Matthew Daley, senior investigator at the Institute for Health Research with Kaiser Permanente Colorado. "How very grateful I am that we now have three safe and highly effective vaccines." The U.S. Food and Drug Administration authorized use of the single-dose shot on Saturday based on its 66% effectiveness at preventing moderate to severe Covid-19 disease in a large study that also showed it was safe.
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The SMI closed a hefty 1.3 percent lower on 10,522 points Friday. After rising US bond yields had weighed on sentiment Thursday, investors were nervous before the weekend. All but two SMI stocks closed lower. Defensive stocks fared relatively well. Roche rose 0.3 percent on news its spinal muscular atrophy drug Evrysdi is set to be approved in Europe soon. Competitor Novartis fell 1.1 percent but was still among the better performing stocks. Novartis plans to collaborate with Chinese competitor Beigene to develop Beigene’s cancer drug Tislelizumab. Fellow heavyweight Nestle slid 1.2 percent. Lafargeholcim slumped 2.5 percent despite posting higher 4Q recurring EBIT, thanks to a market recovery, and a positive outlook for 2021. Traders were disappointed, saying the figures were not as good as expected. Banks Credit Suisse fell 1.7 percent, while UBS crashed 2.6 percent to bring up the rear of the SMI. Insurers Swiss Re slid 1.9 percent, Zurich 2.0 percent and Swiss Life 1.8 percent.
European shares fall as concerns about rising bond yields weigh on market sentiment. The Stoxx Europe 600 retreats 1.6%, the FTSE 100 slumps 2.5%, the DAX drops 0.7% and the CAC-40 slides 1.4%. Energy and mining shares are among the weakest performers in the region as oil and commodities prices fall.Shares in Cellular Goods PLC on Friday traded significantly above their initial public offering, as the cannabinoid-skincare company backed by former soccer star David Beckham debuted on the London Stock Exchange. Shares in Cellular Goods at 0917 GMT were trading at 24.50 pence, having earlier peaked at 30 pence, which compares with its IPO price of 5 pence. Its listing comes shortly after the flotation of medical cannabis company Kanabo Group PLC, whose shares have risen six-fold since their trading debut. Meanwhile, Zoetic International PLC, a London-listed provider of cannabidiol-products, has seen its shares soar to 81 pence from around 10 pence a year ago. BASF SE said Friday its net profit increased in the fourth quarter, and released its outlook for 2021.
Rising bond yields blunted U.S. stocks' market momentum this week despite signs of an improving American economy. On Friday, the Dow Jones Industrial Average fell 469.64 points, or 1.5%, to 30932.37, dropping 1.8% for the week. The S&P 500 fell 18.19 points, or 0.5%, to 3811.15, down 2.45% for the week. The tech-heavy Nasdaq Composite, which has risen farther than its peers since last March and has been particularly driven by momentum traders, suffered a bigger loss this week. It fell 4.9% on the week, its worst percentage loss since the week ended Oct. 29. On Friday, it rose 72.91 points, or 0.6%, to 13192.35. Salesforce.com Inc. (-6,4%) easily topped $20 billion in revenue for the first time in its recently completed fiscal year, so now it's time for a new goal: $25 billion. Salesforce (CRM) reported fourth-quarter earnings of $267 million, or 28 cents a share Thursday, improving from a loss of $248 million in the same quarter a year ago. After adjusting for stock-based compensation and other factors, the cloud-software company reported earnings of $1.04 a share. Revenue increased to $5.82 billion from $4.85 billion a year prior, resulting in an annual revenue total that surpassed $20 billion, a key goal of co-founder and Chief Executive Marc Benioff. Shares of Dell Technologies Inc. rose more than 1,6% Friday after the tech company reported fourth-quarter profit and sales that were better than Wall Street expected.
In Asia, major benchmarks recorded solid gains, with investors largely overlooking some disappointing Chinese manufacturing data. After last week's losses, a countermovement can now be observed, say participants, who primarily point to falling bond yields.
Government bonds extended their rebound in Asian trade, offering some respite for market participants grappling with the speed of last week's the bond-market selloff. U.S. Treasury yields pulled back on Friday and investors attributed some of the strong bond-buying as driven by traders feeling the selloff in Treasurys had overshot economic fundamentals. But investors likely will need to keep facing the specter of heightened inflation pressures, with recent economic data offering a reminder of the hoard of savings among households that may be released when the pandemic subsides.
CS lowers the Anheuser-Busch target to 57 (61) EUR – Neutral
UBS rises the BBVA target to 4,50 (4,30) EUR – Neutral
IR rises the Carrefour target to 19 (18) EUR – Buy
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