Pfizer Inc. (+2%) announced on Friday the completion of its acquisition of Arena Pharmaceuticals, a clinical stage company developing innovative potential therapies for the treatment of several immuno-inflammatory diseases. The US pharmaceutical company had announced in mid-December that it had reached an agreement to buy Arena in a deal valuing the company at around 6.7 billion dollars. Arena Pharmaceuticals brings to Pfizer a portfolio of diverse and promising development-stage therapeutic candidates in gastroenterology, dermatology, and cardiology, including etrasimod, an oral, selective sphingosine 1-phosphate (S1P) receptor modulator currently in development for a range of immuno-inflammatory diseases including ulcerative colitis, Crohn's Disease, atopic dermatitis, eosinophilic esophagitis, and alopecia areata. Pfizer has completed its acquisition of all outstanding shares, options, and restricted stock units of Arena for $100 per share, in cash, for a total equity value of approximately $6.7 billion. The acquisition was completed by way of a merger in accordance with Delaware law and, as a result of the acquisition, Arena became a wholly-owned subsidiary of Pfizer. In connection with the acquisition, Arena's shares of common stock will be delisted from the Nasdaq Global Select Market on or about March 11, 2022.

Looking for New Structured Product Ideas?
https://en.swissquote.com/trading/investment-products/yield-boosters

On Friday, the SMI gained 0.9 per cent to 11,496 points. Among the 20 SMI stocks, there were 17 price gainers and three price losers. 55.08 (previously: 59.26) million shares were traded. Buying took place across the board. However, financial stocks were particularly popular with investors. Swiss Life advanced by 3.7 per cent, Swiss Re by 1.6 per cent and Zurich Insurance by 2.4 per cent. The shares of the two major banks UBS and Credit Suisse rose by 2.0 and 2.5 per cent respectively. The shares of the two pharmaceutical giants Novartis and Roche posted gains of 1.2 and 1.0 per cent. The index heavyweight Nestle lagged the market with a minus of 0.5 per cent. Givaudan was the day's loser with a 1.5 per cent discount.

European stocks rose with investors closely watching news of the Russian war on Ukraine and reacting to oil-price swings. The Stoxx Europe 600 index gained 1% to 431.4 points. In Paris, the CAC 40 and SBF 120 rose 0.9% and 1%, respectively. In Frankfurt, the DAX 40 gained 1.4%, while the FTSE 100 rose 0.8% in London. For the week as a whole, the Stoxx Europe 600 index recovered 2.2%. Rubis (+7.7%) announced higher results and a higher dividend for 2021, boosted by the recovery of its activities, and confirmed its intention to accelerate its development in renewable energy. Spie gained 6.5%. On the occasion of the publication of its 2021 results, the electrical and mechanical engineering specialist announced that it expects organic growth in production of at least 3% this year, after an increase of 3.2% in 2021, and a continued increase in its operating margin, known as Ebita, which stood at 6.1% last year. EssilorLuxottica (+2.9%) had a "robust end to 2021, with accelerating organic growth and a good margin performance in the second half", Jefferies analysts noted. Stellantis (+0.2%) announced the suspension of its vehicle exports and imports in Russia. The Italian defense company Leonardo (+11.5%) guided for 2022 sales of EUR14.5 billion-EUR15 billion and Ebita of EUR1.18 billion-EUR1.22 billion.

All three indexes finished the week in the red after Friday’s selloff. The blue-chip Dow Jones Industrial Average ended Friday down 229.88 points, or 0.7%, at 32944.19. The S&P 500 fell 55.21 points, or 1.3%, to 4204.31 while the tech-heavy Nasdaq Composite dropped 286.15 points, or 2.2%, to 12843.81. The S&P 500’s information technology sector was one of several to lose more than 1% on Friday; all 11 were in the red for the day. Among this week’s worst performers: technology companies. The Nasdaq Composite entered bear market territory on Monday, defined as falling 20% from its recent high. Rising inflation has pressured tech stocks, traders said, because it can lead to higher interest rates and bond yields that make growth stocks’ promised future cash flows less attractive. The S&P 500 tech sector finished the week 3.8% lower. Shares of DocuSign tumbled $18.87, or 20%, to $75.01 after the software maker released softer-than-expected guidance. Oracle shares rose $1.17, or 1.5%, to $77.82 after it reported its cloud-business revenues jumped 24% from a year earlier. Rivian Automotive (-7.6%) posted a loss of 2.46 billion dollars in the fourth quarter, compared to 353 million dollars a year earlier. The manufacturer of electric trucks also warned that supply problems would affect its production this year. Oracle (+1.5%) announced lower results for the third quarter of its 2021-2022 financial year. The business software company expects earnings of $1.35 to $1.39 per share and revenue growth of 3% to 5% in the fourth quarter, excluding the Cerner acquisition. The European Commission announced on Friday that it had opened an investigation into possible anti-competitive practices by Alphabet subsidiary Google (-0.1%) and Meta Platforms (-3.7%), formerly Facebook, in the online advertising market. The Commission's investigation relates to an agreement concluded in 2018 between the two groups, called "Jedi Blue". The UK's Competition and Markets Authority has also launched its own investigation into the Google-Meta deal, according to Brussels.

Asian stock markets are mixed on Monday. Investors in Asia remained on edge following news of a Russian airstrike on a Ukrainian military training center close to the Polish border that killed at least 35 and increased the risk of war encroaching on NATO territory. The Nikkei-225 rose by 1.0 per cent to 25,420 points in Tokyo. In contrast, the Chinese stock exchanges in Shanghai (-1.2 per cent) and Hong Kong (-3.2 per cent) show significant declines amid fears over potential delisting of some U.S-listed Chinese companies. Apparently, the U.S. Securities and Exchange Commission has identified five Chinese stocks for potential delisting from U.S. exchanges for failing to adhere to the Holding Foreign Companies Accountable Act. Thus, the technology sector in Hong Kong falls by around 5 per cent. The coronavirus pandemic is also back in the spotlight in China. The country recently recorded the highest number of new infections since February 2020.

Long-dated U.S. government debt yields have stabilised on Friday after rising to their highest level of the year this week on inflation fears. The 10-year US Treasury note rate eased 1 basis point to 1.995% from 1.994% on Thursday night, while the two-year yield advanced 3 basis points to 1.744%. The yield on the German Bund with a 10-year maturity was 0.251%, compared with 0.275% on Thursday evening.

Jefferies lowers Prudential target to 1,650 (1,800) p - Buy

Dt. Bank cuts Continental target to EUR 90 (95) - Hold

H&A decreases target Hugo Boss to EUR 60 (67) - Buy

Produced by MBI Martin Brückner Infosource GmbH & Co. KG on behalf of Swissquote. All news is acquired with journalistic accuracy. No liability is assumed for delays or errors.