BP PLC took a $25.5 billion pretax accounting charge related to its decision to exit its Russia holdings, including its stake in government-controlled oil producer Rosneft, by far the biggest financial hit tallied by companies pulling back from the country after its invasion of Ukraine. The London-based company said Tuesday that the charge dragged it into a $20.4 billion headline loss for the first quarter despite soaring commodity prices that poured cash into major oil companies' coffers. The loss included a $13.5 billion write-down of BP's nearly 20% stake in Rosneft that reflected its carrying value as of Feb. 27. Apart from the Russia-linked charges, which had been previously flagged, BP's results beat analysts' expectations, helped by what the company called "exceptional" results in oil-and-gas trading. Higher and more volatile prices, together with robust demand, have boosted results for companies that buy and sell commodities globally. BP shares rose 5.8% in London. The company said it would buy back another $2.5 billion of its shares, in addition to $1.6 billion in buybacks it made during the first quarter, and that the Russia-related losses don't change the company's strategy or cut into its plans to distribute cash to investors. That follows moves by Exxon Mobil Corp. and Chevron Corp. last week to increase shareholder returns amid strong quarterly profits. Exxon tripled its share-buyback program this year to $30 billion, and Chevron said it would buy back a record $10 billion of its shares by year-end.

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On Tuesday, the SMI gained just under 0.3 per cent to 12,002 points. Among the 20 SMI stocks, there were 14 price gainers and six price losers. 39.09 (previously: 34.47) million shares were traded. The market was supported by banking stocks, which were among the winners across Europe. In Switzerland, Credit Suisse and UBS rose by 5.3 and 3.6 per cent respectively. Swisscom climbed 1.1 per cent, Citigroup had commented positively and raised the price target significantly. Otherwise, defensive stocks tended to end up in the lower ranks: Nestle and Roche each lost 0.4 per cent, while Novartis held up well. Logitech fell 2.4 per cent after initial gains. The computer equipment manufacturer once again presented record sales figures. However, the company reduced its outlook as it now excludes contributions from Russia and Ukraine. Business figures and outlook of sensor manufacturer AMS-Osram (+0.2%) were characterized as mediocre. With takeover speculation, Temenos rose 5.8 percent. The real estate company PSP (+1.3%) had raised its EBITDA forecast after convincing business figures.

European stocks were mostly higher Tuesday as investors took encouragement from a late rebound on Wall Street and as they positioned for base rate rises this week in the U.S. and in the U.K. The Stoxx Europe 600 index closed 0.5% at 446.2 points. In Paris, the CAC 40 and the SBF 120 were both up 0.8 percent. In Frankfurt, the DAX 40 rose 0.7%. In London, the FTSE 100 gained 0.2% on the day after a UK bank holiday. Alstom (+5.4%) was the biggest gainer on the SBF 120 index, supported by a Citi rating. BNP Paribas (+5.2%) reported higher first quarter results after a strong increase in business, particularly in the financial markets. The bank saw its net income rise by 19% year-on-year in the last quarter, to 2.11 billion euros. Free2move, a division of Stellantis (+2.9%) specialising in new forms of mobility, has signed an agreement to acquire the German car-sharing company Share Now. The amount of the transaction was not disclosed. Created in 2019, Share Now is a joint venture between Mercedes-Benz Mobility Group, a subsidiary of Mercedes-Benz (-0.6% in Frankfurt), and BMW Group (+1.8%). German chemical company Covestro (-4.9% in Frankfurt) lowered its financial forecast for 2022 due to Covid-19 restrictions in China, rising energy costs and weaker-than-expected global economic growth.

U.S. stock indexes finished modestly higher on Tuesday as investors geared up for the Federal Reserve’s policy decision this week and evaluated a batch of earnings. Stocks moved between small gains and losses during the session, closing in the green for a second straight day after a brutal selloff capped off April. The S&P 500 rose 20.10, or 0.5%, to finish at 4175.48. The technology-focused Nasdaq Composite added 27.74, or 0.2%, to 12563.76. The Dow Jones Industrial Average edged up by 67.29, or 0.2%, to end at 33128.79. Trading reflected a tense mood among investors expecting the central bank to accelerate its tightening of monetary policy this week, the latest step in inflation-fighting efforts that have raised borrowing costs throughout the economy this year, scrambling stock and bond markets. Recent economic data have shown higher costs on everything from groceries to gasoline, with war in Ukraine and anti-Covid-19 measures in China further complicating global trade. U.S. companies are also facing climbing wages as labor markets remain tight. Those factors have put inflation at the top of the Fed’s agenda. Traders in individual stocks reacted to a slew of big companies’ latest reports and financial forecasts. Investment firm KKR rose $1.35, or 2.6%, to $54.29 after its after-tax distributable earnings came in above analyst estimates. Estee Lauder lost $15.11, or 5.8%, to $245.52 after the company lowered its revenue and earnings outlook. Rockwell Automation said quarterly earnings tumbled, sending shares down by $36.30, or 15%, to end at $213.74. Education company Chegg saw its shares plummet by $7.56, or 30%, to $17.42, a day after the company’s chief executive said inflation is turning some higher-education students away from enrollment.

The stock markets in East Asia were mixed. In Hong Kong, the Hang Seng Index (HSI) fell by 1.3 per cent. The index was weighed down by technology stocks. The share of the online company Meituan declined by 5.9 per cent, Alibaba lost 4.1 per cent and JD.com 4.2 per cent. The share price of index heavyweight Tencent slipped 3.2 per cent. HSBC moves up 1.9 per cent. The bank announced plans to buy back up to US$1 billion worth of shares before the end of August. In South Korea, the Kospi was down 0.1 per cent. Korea Electric Power gained 4.7 per cent. The utility is expected to raise its electricity tariffs due to higher oil and gas prices. Korea Gas gain 5.5 per cent.

Higher Treasury yields, which as they rise offer investors more-competitive low-risk returns relative to stocks, are weighing on markets. Rate-setting officials gathered Tuesday for a two-day policy meeting. At its conclusion Wednesday, the Fed is expected to raise interest rates by a half percentage point, which would be the first such increase in 22 years and following on from a quarter-point rise in March. Investors will seek details from Chairman Jerome Powell on the central bank’s plans to reduce its bondholding. Officials have recently indicated that they will allow $95 billion in securities to mature every month, unwinding another form of stimulus lavished on markets during the pandemic. The yield on the 10-year US Treasury bond gained 8 basis points to 2.971% while that of the 2-year security gained 6 basis points on Tuesday, to 2.760%.

Citi raises Novo Nordisk target to DKK 925 (800) - Buy

Jefferies raises Vestas to Hold (Underperform)/DKK 177 (148) target

Citi lifts target Erste Bank to EUR 40.50 (40) - Buy

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