european stocks rose tuesday with oil majors boosted by strong bp earnings and higher commodity prices spurring gains for miners in the background investors continued to monitor whether global central banks will try to temper inflation by speeding up the withdrawal of economic stimulus by and large markets and investors are getting used to the idea of higher rates from central banks as the stock of negative yielding debt slowly diminishes and the risk of longer and more persistent inflation prompts a broader recalibration of investor portfolios wrote michael hewson chief market analyst at cmc markets uk bnp paribas shares fell 34 after the banks fourthquarter preprovision profit and revenue came in below estimates jefferies said net profit was 13 above consensus and 9 above jefferiess forecasts however when excluding the oneoffs we get to an adjusted pretax profit of eur296 billion which is in line with consensus but 4 below our estimates jefferies noted revenue was 1 below consensus forecasts and jefferies estimates edf shares fell 28 after it downgraded its nuclearoutput estimate for france in 2022 for the second time this year due to the extension of the outage period at five reactors jefferies said the cut to edfs targeted nuclear output for this year will entail a significant financial hit the french utility didnt set out the financial impact of the likely lower output but based on current prices the drag could reach more than eur2 billion according to jefferiess estimates ocado stock fell almost 8 with shore capital saying the online grocer is struggling to breakeven and create a pathway to sustainable selffunded development ocado provided guidance for fiscal 2022 but this remains subdued shore added meanwhile ocados market is getting more competitive every year we remain sceptical of a business model that is unproven risky cash consumptive and now under competitive pressure shore said which has a target price of 1407 pence on the stock airbus is a standout in the aerospace  defense sector with deliveries margin expansion and costsavings all promising upside ahead said jefferies starting coverage of the plane maker with a buy rating and a eur140 target production of the a320 family of jets is fast returning to prepandemic levels with deliveries likely returning to growth by the end of next year jefferies has forecast while costcutting should boost operating margins ahead strong cash generation should also entail new returns to shareholders starting with dividends but with buybacks also possible another special dividend could be in the cards when rio tinto reports its fullyear earnings feb 23 according to macquarie the bank is tipping a final dividend of 475share which includes an estimated special dividend of 128 macquarie said the miners ironore earnings are strong and its balance sheet is healthy however we also note that nearterm cash outflows could constrain rios additional cash returns to shareholders such as the potential increased closure and rehabilitation costs of the ranger uranium mine in the northern territory and planned capital spending on decarbonization investment after commentary from peers so far this earnings season schneider electric should have a relatively slow start to 2022 with the bottlenecks which trimmed schneiders growth by around 2 percentage points in its third quarter continuing citi said yet this is now factored into its share price as schneider electric shares have dropped almost 15 in the year to date citi added schneiders valuation also correlates with us real yields and the selloff since the beginning of the year coincides with one of the strongest rotations from growth to value stocks in a decade citi suggests the stock is no longer overvalued upgrading schneider to neutral from sell but leaving its target price at eur150 wholesale trade in germany recorded a new record high in 2021 according to preliminary data from the german statistics office destatis priceadjusted turnover in wholesale trade was 25 higher in 2021 than in 2020 the year when the pandemic started compared with 2019 the year before the pandemic turnover was up 44 in 2021 in real terms the development in wholesale trade thus was similar to that in retail trade which recorded a new record high in 2021 too destatis said in nominal terms wholesale trade rose 103 in 2021 compared with 2020 the gap between real and nominal growth rates widened in the second part of the year due to the sharp rise in wholesale prices omicron had a negative impact on the eurozone economy in january affecting companies and consumers but the hit was much more limited than during previous surges in cases said philippe waechter chief economist at ostrum asset management ostrum am expects the eurozone economy to grow 38 in 2022 with an easing of supplychain issues starting in the second quarter expected to boost the recovery waechter said eurozone inflation is expected to remain high in 2022 with inflation stemming largely from international energy prices but a contractionary monetary policy by the european central bank wouldnt influence energy prices nor stop prices from rising waechter said the market pricing of interest rate increases by the european central bank this year is too aggressive for nordea which has more muted expectations the ecb has clearly turned more hawkish but we think the market has already become too aggressive in its pricing of rate hikes for this year  said nordeas chief analyst jan von gerich nordea expects the ecb to carry out the first 25 basis point interest rate rise in december the market prices in more anticipating more than 50 bps of interest rate rises until the end of the year von gerich said stock futures gained as investors continued to anticipate tighter monetary policy from the federal reserve us inflation data in the form of the consumerprice index for january set to be released thursday looms large the fed faces an environment of historically high inflation which is the backdrop against which the central bank plans to tighten policy any indications that inflation is continuing to rise would feed into a hawkish narrative of more or bigger rate increases traders are already pricing in four or five rate increases this year with the first in march bond yields moved to their highest levels so far this year with the yield on the benchmark 10year treasury note sitting above 194 tuesday having closed out 2021 at 151 the yield on the 2year treasury notewhich attempts to forecast the level of shortterm interest rates for the next couple of yearsrose to 134 having begun the year at 077 the rise in longerduration yieldssuch as the 10yearseemed to be having some pressure on nasdaq which was set to underperform other indexes higher yields tend to discount the present value of future cash weighing on the valuations of many highgrowth companies in the tech sector which are banking on profits years in the future peloton which reports earnings today told the wall street journal it plans to replace ceo john foley and cut 2800 jobs the stock was down almost 4 in premarket trading the dollar was firmer continuing its positive run after the strong jobs report maybank said a higherthanexpected cpi reading this week could further support the greenback particularly in the context of tightening labor market conditions and wage growth acceleration increasing the likelihood of a swifter pace of fed policy normalization the runup to the fomc meeting in march could be dollarsupportive too as there is some speculation for a 50bp rate increase maybank added ing said fridays jobs data should help the dollar to build on recent gains on prospects of the fed raising interest rates this year starting in march fridays payrolls numbers have helped build a floor under the dollar as markets should continue to cement their hawkish views on fed tightening into the march meeting the lowyielding japanese yen and swiss franc could emerge as the biggest losers against the dollar ing said sterling is likely to trade mostly rangebound tuesday as traders await bank of england speeches and uk economic growth data later in the week said ing except for the nonmarketmoving political turmoil in the uk there are no other events or data releases to report on the gbp side today said ing forex strategist francesco pesole that will keep sterling trading in a tight range for now in coming days however sterling could move with speeches from boe chief economist huw pill on wednesday and boe governor andrew bailey on thursday followed by uk economic growth data on friday commerzbank has stayed neutral on government bonds for the day as bonds remain under pressure with the global bond rout broadening this morning and nothing else on the agenda that could make a difference we suggest a neutral stance said christoph rieger head of rates and credit research at the german bank jpmorgan has recommended investors stay neutral in 10year german duration with the market pricing of cumulative interest rate increases by the ecb up to the end of 2023 broadly fair jpm expects the ecb to start raising interest rates in december and then deliver a cumulative 100 basis points increase by the end of 2023 eurozone peripheral government bonds need to adjust to the reality of a world without the ecbs quantitative easing said frederik ducrozet strategist at pictet wealth management he estimates that up to 60 of italys net governmentbond issuance will be bought by the central bank in 2022 compared with a level of 100 in 20202021