By Swissquote Analysts
Credit Suisse to Delay Publication of 2022 Annual Report on SEC Comments
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Credit Suisse Group AG said Thursday that it will delay the publication of its 2022 report after a late call from U.S. market regulators over 2019 and 2020 cash-flow statements, adding a further headache as the lender attempts to woo back clients amid a costly turnaround effort. The Swiss bank said it received a call from the U.S. Securities and Exchange Commission on Wednesday in relation to certain open SEC comments about the technical assessment of previously disclosed revisions to its consolidated cash-flow statements in the 2020 and 2019 fiscal years as well as related controls. “Management believes it is prudent to briefly delay the publication of its accounts in order to understand more thoroughly the comments received,” Credit Suisse said. The company said it wouldn’t affect its 2022 financial results released early in February. Credit Suisse’s share price hit a low in the weeks since the 2022 results on uncertainty about its future, with analysts fearing that recent large outflows from customers will hinder a recovery.
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The Switzerland stock market ended weak on Wednesday, extending recent losses, as concerns about interest rates and slowing growth rendered the mood a bit bearish again. The benchmark SMI ended with a loss of 38.82 points or 0.35% at 11,025.26, after moving between 10,995.92 and 11,044.82. Lonza Group ended 1.74% down, Givaudan drifted down 1.43%, and UBS Group dropped 1.08%. Richemont, Alcon, Geberit, Credit Suisse, Roche Holding and Novartis lost 0.6 to 1%. Logitech climbed nearly 2%. Swiss Life Holding, Zurich Insurance Group, Swisscom and Swiss Re gained 0.6 to 1%. In the Mid Price Index, Adecco and Zur Rose both shed about 2.3%. Kuehne & Nagel, Straumann Holding, Dufry and SGS ended lower by 1 to 1.2%. SIG Combibloc surged 2.22%. AMS gained 1.73%, Clariant, Helvetia and VAT Group gained 1.2 to 1.5%, while Tecan Group ended 1.1% up.
European stocks closed broadly higher on Wednesday with investors digesting Federal Reserve Chair Jerome Powell's hawkish remarks during his testimony before the Senate Banking Committee. Markets also took in their stride the latest batch of economic data from the European region. Citing stubbornly elevated inflation and stronger than expected economic data, Powell told lawmakers the 'ultimate level of interest rates is likely to be higher than previously anticipated.' Powell also said the Fed would be prepared to reaccelerate the pace of rate hikes if the totality of incoming data were to indicate that faster tightening is warranted. Additionally, the Fed chief reiterated the central bank will likely need to maintain a restrictive stance of monetary policy for 'some time' in order to restore price stability.The pan European Stoxx 600 edged up 0.08%. The U.K.'s FTSE 100 gained 0.13%, Germany's DAX climbed 0.46%, and France's CAC 40 drifted down 0.2%. Switzerland's SMI ended 0.35% down. Among other markets in Europe, Austria, Czech Republic, Netherlands, Poland, Portugal, Spain, Sweden and Turkiye closed higher.Denmark, Greece, Ireland and Norway ended weak, while Belgium, Finland and Iceland settled flat. In the UK market, Hiscox rallied 5.2%. Rolls-Royce Holdings, Antofagasta, Smith (DS), Glencore, Smurfit Kappa Group, Haleon, Natwest Group, Melrose Industries, Rio Tinto, HSBC Holdings, Taylor Wimpey, Kingfisher and National Grid gained 1 to 2.5%. Admiral Group ended more than 4% down. Land Securities Group, British Land Co., St. Jame's Place, Schrodders, Frasers Group, Segro and GSK lost 1 to 2.5%. In the German market, Continental soared nearly 8%. Infineon Technologies climbed more than 3%. Bayer, Adidas, Porsche, Siemens, Symrise and Volkswagen gained 1 to 2.2%. Sartorius ended lower by about 2%. Merck, Brenntag, Vonovia and Siemens Healthineers also closed weak. In Paris, STMicroElectronics surged more than 3.5%. ArcelorMittal, Bouygues, Danone, AXA, Kering and Vivendi posted moderate gains.
U.S. stocks wobbled between small gains and losses Wednesday as investors parsed a second day of congressional testimony from Federal Reserve Chair Jerome Powell and further data suggesting the labor market remains hot. The S&P 500 climbed 5.64 points, or 0.1%, to 3992.01, while the Nasdaq Composite increased 45.67 points, or 0.4%, to 11576.00. The Dow Jones Industrial Average slipped 58.06 points, or 0.2%, to 32798.40. Mr. Powell said the central bank would keep its options open about future rate increases and that coming economic data would strongly influence the rate decision at the Fed's March 21-22 meeting. Stocks fell Tuesday as well when he said the Fed is prepared to speed up the pace of interest-rate increases if inflation and the labor market don't cool down. Markets moved to price amid a higher probability of a bigger rise in rates at the central bank's next meeting. Among individual stocks, CrowdStrike rose $3.99, or 3.2%, to $128.92 after the cybersecurity company gave a revenue outlook that came well above analysts' forecasts. Online clothing and styling company Stitch Fix dropped 2 cents, or 0.4%, to $4.95 after it said losses more than doubled last quarter. Campbell Soup gained $1.01, or 1.9%, to $53.14 after the soup and snack maker reported a 12% rise in sales.
East Asian stock markets are narrowly mixed in Thursday's trading session. The Nikkei index in Tokyo is gaining 0.5 per cent to 28,589 points, while the Kospi in Seoul is down 0.4 per cent. Sydney has closed little changed and on the Chinese stock exchanges the swings in the indices are small.
The yield on the U.S. benchmark 10-year Treasury note reversed earlier declines and was unchanged from 3.974% on Tuesday.
UBS raises Henkel to EUR 67 (62) – Neutral
UBS lowers EssilorLuxottica to Neutral (Buy) – EUR 183 (210)
BoA raises Gea target to EUR 50 (44) – Buy
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