By Swissquote Analysts
TotalEnergies Sees Limited Exposure to Stakes in Ventures with Adani Group
Topic of the day
TotalEnergies SE said that its exposure resulting from stakes in ventures with Adani Group is limited, as it accounts for 2.4% of its capital employed. The French energy giant said it undertook joint investments in India in partnership with Adani since 2018, and its current holdings include stakes of 37.4% and 19.75% in listed companies Adani Total Gas Ltd. and Adani Green Energy Ltd., as well as 50% stakes in each of Adani Total Private Ltd. and AGEL23. TotalEnergies said its exposure resulting from this stakes amounted to $3.1 billion as of Dec. 31 and $180 million of net operating income in 2022. The company said it hasn't re-evaluated in its accounts the values of its interests in the listed entities in relation to the moves in their stock values. TotalEnergies said its investments in India in partnership with the Indian group were in full compliance with applicable laws and its own internal processes, and said it welcomes Adani's move to mandate a general audit. International markets.
After opening flat, the Switzerland stock market gained in strength thanks to sustained buying at several counters and closed on a buoyant note on Friday. The benchmark SMI ended with a gain of 160.97 points or 1.44% at 11,349.39, slightly off the day's high. Logitech and Roche Holding rallied 3.17% and 3.1%, respectively. ABB surged 2.57%. Nestle, Novartis, UBS Group and Richemont gained 1.4 to 1.8%, while Lonza Group advanced 1.06%. Credit Suisse and Holcim both shed more than 1%. Swiss Re ended 0.4% down, while Swiss Life Holding edged down marginally. In the Mid Price Index, Zur Rose soared 30.4%. Bachem Holding climbed 4% and Adecco surged 3.15%. Julius Baer, Ems Chemie Holding, Galenica Sante and Belima Holding ended higher by 2 to 2.8%. Swiss Prime Site and Straumann Holding shed nearly 2%. Kuhne & Nagel, Swatch Group and PSP Swiss Property ended lower by 1.2 to 1.6%.
European stocks closed broadly higher on Friday, and the U.K.'s benchmark FTSE 100 hit a record high, as investors reacted to a slew of corporate earnings updates, the latest batch of economic data, and the interest rate moves by major central banks. The pan European Stoxx 600 climbed 0.34%. The U.K.'s FTSE 100 surged 1.04% as Pound Sterling France's CAC 40 gained 0.94%, while Germany's DAX ended 0.21% down. Switzerland's SMI ended 1.44% up. Among other markets in Europe, Czech Republic, Denmark, Greece, Iceland, Netherlands, Norway, Russia, Sweden and Turkiye closed higher. Austria, Belgium, Ireland and Portugal ended weak, while Finland, Poland and Spain settled flat. In the UK market, Haleon, B&M European Value Retail, Smith & Nephew, Shell, AstraZeneca and Reckitt Benckiser gained 3 to 3.5%. JD Sports Fashion rallied 2.84%. Compass Group, Airtel Africa, BAE Systems, BT Group, Unilever, Glencore, Informa, WPP, Smurfit Kappa Group and BP also ended sharply higher. Vodafone Group and Segro lost 3.9% and 3.83%, respectively. Centrica, Persimmon, Barratt Developments, Taylor Wimpey and Natwest Group also declined sharply. In Paris, Publicis Groupe gained more than 5.5%. Essilor surged more than 4.5%. Eurofins Scientific, LVMH, TotalEnergies, Hermes International, L'Oreal, Pernod Ricard, Engie, Legrand, STMicroElectronics and Schneider Electric gained 1 to 3%. Teleperformance and Sanofi both lost more than 2%. Air Liquide, Vivendi, Alstom, WorldLine and Airbus Group ended lower by 1 to 1.4%. In the German market, Adidas, Infineon Technologies, Continental, Zalando, Merck, Puma and Sartorius gained 1 to 2%. Porsche, Vonovia and Siemens Energy drifted down 2.3 to 3%. Deutsche Telekom, Deutsche Boerse, HeidelbergCement, Daimler and RWE lost 1 to 2%.
Stocks declined to end a busy week after the monthly jobs report beat expectations, stoking fears that interest rate increases may continue longer than expected. The Nasdaq Composite fell 193.86 points, or 1.6%, to 12006.95 as growth stocks led markets lower. The S&P 500 fell 43.28 points, or 1%, to 4136.48. The Dow Jones Industrial Average lost 127.93 points, or 0.4%, to 33926.01. The S&P 500 and Nasdaq still notched gains for the week, gaining 1.6% and 3.3%, respectively. Shares of tech and growth companies have been among the biggest beneficiaries of the stock-market rally to start the year. Still, the fresh jobs report on Friday highlighted an ongoing tension between investors' desire for lower interest rates and a robust economy that so far hasn't shown many signs of slowing. The jobs data is the latest in a string of reports highlighting that the economy has been resilient. The latest monthly report showed that nonfarm payrolls rose by 517,000 in January, significantly beating expectations. The corporate earnings season has continued to drive big moves across the market. Some earnings results showed that the big tech giants are showing signs of slowing. Alphabet reported its first drop in advertising revenue since the beginning of the pandemic, while Amazon warned growth will slow in its online-shopping and cloud businesses. Apple flagged lower sales of iPhones, Macs and wearables. Alphabet, Amazon and Apple have significant influence over the direction of the broader market because of their huge market valuations, which in turn give the stocks hefty weightings in the benchmark S&P 500 index. Apple shares rose $3.68, or 2.4%, to $154.40, in Friday trading. Alphabet slipped $2.96, or around 2.7%, to $104.78. Amazon dropped $9.52, or 8.4%, to $103.39.
Stock markets in East Asia and Australia are mostly down at the beginning of the week. The latest tensions between the USA and China following the shooting down of a suspected Chinese spy balloon by US forces put additional pressure on the Chinese stock markets. In Hong Kong, the Hang Seng Index is down 2.4 per cent. The Shanghai Composite Index loses 0.9 per cent. As was the case in the USA on Friday, technology stocks, which are considered sensitive to interest rates, are sold off against the backdrop of sharply higher market interest rates in the USA. In Hong Kong, Alibaba is down 3.2 per cent and JD.com is down 4.6 per cent.
U.S. treasury yields climbed after the jobs data. The yield on the 10-year U.S. note rose to 3.531% from Thursday's 3.396%. Yields fall as prices rise.
CS raises Santander target to EUR 4.50 (4.40) – Outperform
CS lowers DWS target to EUR 31 (32) – Neutral
Bank of America raises Infineon target to EUR 50 (48) – Buy
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