HSBC Holdings Share News (HSBA)

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Dow, S&P 500 turn red, Nasdaq turns lower
  
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Energy leads S&P 500 sector gainers; staples weakest group
  
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Euro STOXX 600 index up ~0.5%
  
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Dollar down; gold, crude, bitcoin rally
  
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U.S. 10-Year Treasury yield slides to ~3.40%
  
 
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ESG INVESTORS KEEP A STERN BLIND-EYE TO ENERGY - BERNSTEIN (1055 EST/1555 GMT) 
Environmental, social and governance (ESG) investors did not jump into the energy rally bandwagon in 2022 despite the 
sector's outperformance and kept up with their "exclusion 
policy" for the fossil fuel ESG funds, Bernstein says. 
ESG investors have not loosened their exclusion policy over the past year while 12% of them have strengthened their 
exclusion lists, according to the brokerage's propreitary survey 
from a pool of more than 50 institutional investors. 
"We don’t expect the exclusionary approach to go out of favor anytime soon, especially as most investors have adopted an 
exclusion policy for non-financial reasons," Bernstein says. 
Investors pulled more money from funds marketed as "sustainable" than they added for the first time in more than a 
decade in 2022, hit by fallout from the Ukraine war, tumbling 
financial markets and a political backlash against the industry. 
The funds, which reflect a range of environmental, social and governance (ESG) issues, are also set to lag the performance 
of non-ESG funds for the first time in five years, data shows, 
after the fossil fuel shares they typically shun soared. 
While shunning energy, funds with global mandates continue to overweight industries along the clean energy value chain like 
electrical equipment and machinery, the brokerage says. 
ESG funds globally continued to be "underweight" oil and gas relative to benchmarks as of the third quarter in 2022. Funds 
with global and Asian mandates became less "underweight" on oil 
and gas during the quarter, while European and North American 
ESG investors became slightly more "underweight." 
(Siddarth S) 
***** 
GLIMMER OF HOPE FOR EUROPEAN EQUITIES IN 2023 (1022 ET/1523 GMT) 
European equities are finally seeing some light at the end of the tunnel, considering China's reopening and a lesser 
stagflation shock in Europe limiting the downside risks to 
corporate earnings, analysts at Barclays say. 
Energy services and utilities are set for another strong quarter, while insurance and banks are also poised for a decent 
one on the back of higher rates, according to Barclays' outlook. 
Cyclical plays like construction, autos and luxury goods are also set for steady earnings. 
NatWest Group PLC, HSBC Holdings PLC and BNP Paribas SA were among the top picks within the 
banking space. 
On the other hand, refiners and exploration & production sectors could post weak earnings owing to a sharp decline in 
energy prices. 
The oil and gas sector was the top performer in 2022 with, ending the year 24% higher as energy prices rose sharply. 
Analysts were optimistic about higher earnings estimates for the broader market, barring commodities, at mid-high 
single-digit growth. 
"Although earnings won’t help equities this year, we believe that if rates volatility indeed subsides, stocks may be okay," 
the brokerage said, adding that price-to-earnings de-rating in 
2022 should provide equities some cushion to absorb mild 
earnings downside. 
The pan-European STOXX 600 fell around 13% in 2022, before gaining nearly 8% so far this year. 
Easing inflation pressure could introduce a more stable rates backdrop in 2023, which in turn is likely to cushion 
equity valuations, according to the analysts at Barclays. 
While resilient demand and pricing backdrop should support top lines, inventory destocking and still high costs are likely 
to pressurize margins, the analysts added. 
(Ankika Biswas) 
WALL STREET RALLIES AS PPI BACKS SLOW INFLATION NARRATIVE (1012 ET/1412 GMT) 
Stocks on Wall Street are higher on Wednesday after a bigger-than-expected decline in U.S. producer prices offered 
more evidence of receding inflation and kindled speculation the 
Federal Reserve can soon curb its interest rate hikes. 
Energy and consumer discretionary are among leading S&P 500 sector gainers, while consumers 
staples is the biggest loser. 
Semiconductors, small caps and Dow transports are all in the green. Growth stocks are more than 
doubling the gains of value. 
The producer price index for final demand decreased 0.5% last month, the Labor Department said, while data for November 
was revised lower to show the PPI rising 0.2% instead of 0.3% as 
previously reported. 
Below is a snapshot of early prices on Wall Street:
HOW TO GUIDE FOR DISINFLATION [0930 EST/1430 GMT]
Strategists and economists at UBS believe that the pace of disinflation in 2023 could surprise investors just as much as 
the pace of inflation last year. 
According to UBS, signs of easing inflation seem clearer and 80% of their sample of economies around the world saw lower 
price increases in the second half of 2022 than in the first 
half of the year. 
"Based on our model, higher prices in 2021 were mostly caused by strong consumer demand after the Covid lockdowns 
ended, when in 2022, supply bottlenecks, magnified by the 
Russia-Ukraine war, were the main driver of inflationary 
pressures," wrote the researchers. 
"In 2023, we expect both demand and supply to play a role in the disinflation process." 
Globally, they have selected stocks most positively or negatively impacted by this trend based on return sensitivity to 
changes in inflation indexes, price performance during periods 
of declining inflation and sensitivity of revenues to changes in 
inflation indexes. 
While preference varies on the region, they are generally overweight on health care, tech, communication services and 
consumer discretionary stocks given their past outperformance in 
periods of declining inflation. 
UBS is underweight on energy stocks that have led gains last year, along with financials, industrials and materials, that 
have lagged in disinflationary periods. 
Nevertheless, they expect global growth to be historically weak in 2023, at 2.1%, which is the weakest since 1993, outside 
of the pandemic and the Global Financial Crisis. 
 
List of UBS covered stocks with positive or 
negative impact from disinflation’ based on UBS Strategy 
framework 
 
 
 
Positive                       Negative 
 
Netflix Inc                     Live Nation Entertainment Inc 
Ubisoft Entertainment SA        Pearson PLC 
Moneysupermarket.com Group      El Puerto de Liverpool SAB de Autohome Inc                    Swatch Group AG 
Dollar General Corp             Archer-Daniels-Midland Co 
Valeo                           Sao Martinho SA 
Flutter Entertainment           GrainCorp Ltd 
New Oriental Education &        Exxon Mobil Corp 
Technology 
Clorox                          Schlumberger NV 
Yihai International             Equinor ASA 
Natura & Co Holding              Shell PLC 
Neste Oyj                       Petroleo Brasileiro SA 
Lancashire Holdings             Investec PLC 
B3 SA - Brasil Bolsa Balcao     Raymond James Financial Inc Abbott Laboratories             Woori Financial Group Inc 
Koninklijke Philips NV          Sonova Holding AG 
Celltrion Inc                   Republic Services Inc 
Sino Biopharmaceutical Ltd      Alfa Laval AB Kone Oyj                        Nippon Yusen KK 
Masco Corp                      Grupo Aeroportuario del 
Pacifi 
Skyworks Solutions Inc          HP Inc 
Zebra Technologies Corp         Computershare Ltd 
Logitech International SA       Nucor Corp Win Semiconductors Corp         K+S AG 
Ecolab Inc                      Anglo American PLC 
Akzo Nobel NV                   Public Storage 
Aedifica SA                     Hammerson PLC 
Warehouses De Pauw CVA          Centrica PLC 
China Jinmao Holdings Group Lt  Naturgy Energy Group SA 
American Water Works Co Inc     GAIL India Ltd Enel SpA