CAPIS Capital Institutional Services : European Close Jan. 22nd, 2016

Europe has had another great day buoyed by refreshed hopes of further monetary easing by the ECB and rebound in hammered commodities. The Stoxx600 +3.10% finished up with all sectors in the green, led by Energy +5.06%. Basic Resources +.65% lagged behind the rest, dragged down by Glencore -4.46% and Anglo American -8.59%. At the end of this third full-week of the year many of the bourses across the continent are finishing the week firmly in positive territory, though, still very negative YTD. Sweden's OMX30 finishes the week 4.30% higher, one of the largest gains, though it is still down 5.91% YTD. Commodities are broadly trading higher, including Crude +6.87%, Copper +.50%, and Gold +.16%. Volumes were off c. 2% versus 5day average, but ahead c. 24% versus 20 day average.

Just after the close S&P raised the rating on Greece from CCC+ to B- citing stable outlook for the country.

Abertis +5.92%, a Spanish toll road operator, spent $1.03B to purchase the remaining 50% it didn't already own of Autopista Central de Chile, a toll roads that runs through the capital Santiago.

Given the recent success of its main product, S/4 Hana, SAP +.25% has raised its 2017 forecast for it cloud business by 7 per cent.

Shire +2.47% announced that it has complete its $5.9B acquisition of Dyax Corp. The Dyax shareholders have the potential to gain another $646M in value via non-tradable contingent value rights (CVR).

Renault +1.68% has recalled 3,120 vehicles in Brazil due to a steering wheel issue. It seems to be limited to cars made last year in two brands. On the other side of the world in Davos the co. is sharing its optimism about the opportunities in China where the company forecast 5% sales growth and will start building cars there next month. Akzo Nobel +1.02% echoed the same sentiment for the country that accounts for 12% of the company's annual revenue.

Ericsson +6.72% says that it is unaffected by short-term economic swings since most countries still invest in infrastructure projects. Thus, they have no plans to downsize in China despite slowing growth and divestments by other companies.

Monday Eco: US Dallas Fed Manf. Activity, Japan Trade Balance, Australia NAB Business Conditions/Confidence, Singapore CPI, Germany IFO Business data, Italy Retail Sales, and much more …