Newsquawk

Europe Market Open: NFLX +8.7% after-hours; European equity futures point to a higher open

24 Jan 2024, 06:33 by Newsquawk Desk

APAC stocks traded mixed following a similar lead from the US with participants digesting earnings, recent hawkish BoJ comments and Chinese support pledges.
Netflix Inc (NFLX) Q4 2023 (USD): EPS 2.11 (exp. 2.22), Revenue 8.83bln (exp. 8.71bln), Streaming paid net change +13.12mln (exp. +8.91mln); Co. shares +8.7% after-hours.
European equity futures are indicative of a higher open with Euro Stoxx 50 future +0.8% after the cash market closed down 0.3% on Tuesday.
DXY trades in tight parameters around 103.50, JPY leads G10 FX, EUR/USD has slipped further onto a 1.08 handle.
Looking ahead, highlights include French, German, EZ, UK & US PMIs, BoC Policy Announcement, Supply from UK, Germany & US, Earnings from SAP, ASML, Abrdn, AT&T, Tesla & IBM.

US stocks were mixed in which the SPX and NDX gradually gained throughout the US session, while the DJIA and RUT lagged as markets digested earnings ahead of upcoming risk events, while Chinese stocks performed well on a slew of support measures.
SPX +0.29% at 4,864, NDX +0.43% at 17,404, DJIA -0.25% at 37,905, RUT -0.36% at 1,976.
Netflix Inc (NFLX) Q4 2023 (USD): EPS 2.11 (exp. 2.22), Revenue 8.83bln (exp. 8.71bln), Streaming paid net change +13.12mln (exp. +8.91mln); Co. shares +8.7% after-hours.
Click here for a detailed summary.

NOTABLE HEADLINES

US Senate Majority Leader Schumer said there are still moving pieces, but he hopes to finalise the supplemental funding deal as soon as possible.
Donald Trump was declared the winner of the Republican New Hampshire primary although Nikki Haley said she would continue to continue fighting on, while Edison Research noted that Trump had 54.2% and Haley had 43.7% with 75% of estimated votes in.

APAC stocks traded mixed following a similar lead from the US with participants digesting earnings, recent hawkish BoJ comments and Chinese support pledges ahead of this week's risk events.
ASX 200 lacked direction as gains in the commodity-related sectors were offset by losses in financials, tech and defensives.
Nikkei 225 was pressured amid the upside in Japanese yields and a more hawkish tone from BoJ Governor Ueda.
Hang Seng and Shanghai Comp were somewhat mixed with outperformance in Hong Kong following the slew of recent support pledges by Chinese authorities, while the mainland was choppy and briefly wiped out its earlier gains after the PBoC continued to drain liquidity through OMOs, but then staged a mild comeback later in the session.
US equity futures (ES +0.3%) remained afloat heading deeper into earnings season and after mixed results from Netflix and Texas Instruments.
European equity futures are indicative of a higher open with Euro Stoxx 50 future +0.8% after the cash market closed down 0.3% on Tuesday.

DXY traded steadily within a tight range of between 103.41-103.54 amid a lack of fresh catalysts stateside.
EUR/USD was off the prior day's worst levels but struggled for direction after the recent slide from 1.0900.
GBP/USD retested the 1.2700 level to the upside albeit with trade quiet ahead of incoming PMI data.
USD/JPY trickled below the 148.00 level after the hawkish-leaning BoJ comments and strong trade data.
Antipodeans were choppy amid the mixed risk appetite and after New Zealand CPI data matched estimates.
PBoC set USD/CNY mid-point at 7.1053 vs exp. 7.1825 (prev. 7.1117).
SNB Chair Jordan expects some inflationary pressure from rents, while he added that nominal appreciation of the Franc has lowered inflation and is hurting Swiss companies, according to Bloomberg.

10yr UST futures recovered some lost ground after the recent bear steepening and a relatively in-line 2yr auction.
Bund futures bounced off the prior day's trough and reclaimed the 134.00 level despite looming German supply.
10yr JGB futures extended on losses as the 10yr JGB yield climbed by as much as 10bps following the more hawkish-leaning comments by BoJ Governor Ueda and after Japanese trade data mostly beat expectations.

Crude futures were contained following yesterday's choppy performance and mixed private sector inventory data.
US Energy Inventory Data (bbls): Crude -6.7mln (exp. -2.2mln), Gasoline +7.2mln (exp. +2.3mln), Distillates -0.2mln (exp. +0.3mln), Cushing -2mln.
Spot gold traded rangebound amid an uneventful dollar and the absence of any major drivers.
Copper futures were steady and eked slight gains on the back of Chinese stimulus hopes.

Bitcoin remained subdued amid the cautious mood and after slipping back beneath the USD 40,000 level.

NOTABLE ASIA-PAC HEADLINES

China is to step up in attracting foreign firms and will not change its stance on protecting the legal rights of foreign companies, according to a minister cited by Reuters.
CSRC Vice Chairman said will ramp up efforts to strengthen investor protection and create a fair, just, and open market order and legal environment to ensure that investors truly feel the fairness and justice of the market, according to Global Times.
Chinese regulators asked some hedge funds to restrict short selling in the stock index futures market, according to sources.

DATA RECAP

Japanese Trade Balance (JPY)(Dec) 62.1B vs. Exp. -122.1B (Prev. -780.4B)
Japanese Exports YY (Dec) 9.8% vs. Exp. 9.1% (Prev. -0.2%)
Japanese Imports YY (Dec) -6.8% vs. Exp. -5.3% (Prev. -11.9%)
Japanese Manufacturing PMI Flash (Jan) 48.0 (Prev. 47.9)
Japanese Services PMI Flash SA (Jan) 52.7 (Prev. 51.5)
Australian Manufacturing PMI Flash (Jan) 50.3 (Prev. 47.6)
Australian Services PMI Flash (Jan) 47.9 (Prev. 47.1)
New Zealand CPI QQ (Q4) 0.5% vs. Exp. 0.5% (Prev. 1.8%)
New Zealand CPI YY (Q4) 4.7% vs. Exp. 4.7% (Prev. 5.6%)
RBNZ Sectoral Factor Model Inflation Index (Q4) 4.5% (Prev. 5.2%)

A one-month Gaza truce is the focus of intensive mediation efforts by Qatar, US and Egypt, according to Reuters citing sources. It was later reported that Hamas is open to releasing some Israeli hostages for a pause in the fighting, according to mediators cited by WSJ.
Pentagon was aware of reports on a new attack on the Al-Asad airbase in Iraq, but couldn’t confirm it at the time, while it was later reported that the US military conducted strikes on Iran-backed militant facilities in western Iraq.
US and UK, with support from Australia, Bahrain, Canada, Netherlands and New Zealand, conducted additional strikes against eight targets in Houthi-controlled areas of Yemen, according to a UK government statement. Furthermore, a US official also announced that the US carried out a new strike against two Houthi anti-ship missiles in Yemen.
White House National Security Adviser Sullivan spoke with Sweden's Landerholm about commitment to supporting Ukraine, while they also discussed Houthi attacks in the Red Sea and the Gaza conflict.
US is deeply concerned regarding arrests of Democratic opposition in Venezuela, according to the State Department.
North Korea fired multiple cruise missiles into the Yellow Sea, according to the South Korean military.

NOTABLE HEADLINES

Senior Tory MP and former cabinet minister Simon Clarke called on PM Sunak to stand down and warned that the party faces an electoral "massacre" under Sunak's leadership, according to Sky News.
German Finance Minister Lindner said Germany needs an "economic turnaround" this year and that it will not work with more debt.