US S&P500 at record high, China LPR unchanged

Hong Kong’s Hang Seng Index fell more than 2% led by real estate stocks after the People’s Bank of China kept its one-year and five-year loan prime rates unchanged at 3.45% and 4.2%, respectively.

The biggest decliner on HSI was real estate developer China Resources Land, which plunged 9.54%.

The list of biggest losers also includes residential real estate services investment company Longfor Group (down 5.99%) and hot pot chain Hai Dilao (down 6.27%).

The biopharmaceutical sector is expected to provide a safe haven from macroeconomic and earnings concerns ahead of European companies’ quarterly results, according to Morgan Stanley.

The Wall Street bank said European biopharma stocks should be sustained in the near term due to “demanding valuations, a challenging macro environment and a backdrop of cyclical earnings risks.”

The investment bank gave eight stocks in the sector a buy rating, giving one stock 119% upside potential. CNBC Pro subscribers can read more here.

— Ganesh Rao

The anti-obesity drug market is expected to remain in focus this year after a bumper 2023 for weight-loss drug makers Novo Nordisk and Eli Lilly, Berenberg said.

The Germany-based investment bank expects the combination of new clinical data and the expiry of Novo’s patent on the active ingredient in a first-generation GLP-1 drug to create new opportunities for several European generic drug makers. There is. GLP-1 drugs stimulate the production of a hormone that causes weight loss due to decreased appetite.

Berenberg analysts named four generic drug companies that would benefit from these patent expirations.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Crude oil prices fell slightly on Friday, but rose for the week due to tensions in the Middle East.

West Texas Intermediate’s February contract fell 67 cents, or 0.9%, to settle at $73.41 a barrel. The March contract for Brent crude oil fell 54 cents, or 0.68%, to settle at $78.56 per barrel.

U.S. crude oil has risen 1% over the past week as investors watch whether attacks by insurgents in the Red Sea will lead to supply disruptions. The global benchmark rose 0.47% this week.

— Spencer Kimball

A consumer survey released Friday by the University of Michigan showed consumers are growing confident in the economy and falling inflation.

According to the survey, the reading in January was 78.8, the highest level since July 2021 and an increase of 21.4% year-on-year. This followed a strong rise in December and despite polls showing concern about the direction of the country.

Sentiment was the biggest two-month increase since 1991, said research director Joan Hsu.

Click here to learn more about the survey results.

— Ha-Kyung Kim, Jeff Cox

Bitcoin and Ether ended the week rising along with the stock market as the S&P 500 hit a new all-time high.

Bitcoin price rose 2% to $41,763.87 after falling to a key support level of $40,000 on Thursday. Ether is trading 2% higher at $2,491.82.

“Positive consumer sentiment and slowing inflation have fueled the rise in risk-on assets,” said Ryan Rasmussen, an analyst at Bitwise Asset Management. “It makes sense for cryptocurrencies to ride this rally, as investors generally view investing in cryptocurrencies as similar to high-tech or risk-on investments.”

Bitcoin is still on pace to record a 4% decline in one week. The stock has fallen 10% since January 10, when Bitcoin ETFs were allowed to begin trading in the United States. The ETF’s approval was widely expected to be selling news. Ether is on pace to end the week down 3%.

However, the movement in crypto assets was not enough to push up the stock price. Coinbase, Microstrategy, and several mining stocks were flat, including CleanSpark, Iris Energy, and Riot Platforms. Marathon Digital rose about 1%.

— Tanaya Machel