CAPIS Capital Institutional Services : European Close Jan. 21st, 2016

Europe had a good day closing the day sharply higher. First, the ECB left interest rates where they were, but what was said during the press conference afterward really moved markets higher. Mario Draghi said that it would necessary to review 'and possibly reconsider our monetary policy stance at our next meeting' which is in March. The Stoxx600 +1.93% finished higher by almost 2 per cent with all sectors in the green, led higher by a solid showing in Basic Resources +7.08%. The optimism that followed the ECB meeting helped stabilize Oil +5.64% which shrugged off the EIA Inventory data that showed a 3.98M barrel rise in inventories. Copper +1.86% is trading higher while Gold +.88% is trading lower just under one per cent. Volumes were down 14% versus 5-day average.

Vestas -.64% plans to acquire Availon, an independent service provider, for €88M on a debt and cash free basis. The transaction is expected to close in Q1.

Barclays +2.25% is said to be eliminating 1,200 jobs worldwide and plans to shutter securities operations across Asia. They will be closing their Russian office while cutting the cash equities business in Australia, Taiwan, South Korea, and Malaysia. This is all part of a broader strategy by the CEO and Chairman who are scheduled to present their full picture with release of full-year results on March 1st.

Grupo BTG Pactual +2.81% in an continued effort to shore up its cash since Andre Esteves, founder and former CEO, was arrested is seeking to sell its Swiss bank BSI. EFG International -4.78% is reportedly the main interested party in the bank and may enter negotiations soon. The Financial Times says the company could fetch as much as $1.2B.

EDF +4.49% says due to unfavorable market conditions in France and Europe as well increased competition they will cut 5% of their workforce 2016 through 2018 via attrition, which is approximately 4,000.

Enel +3.22% has secured a $1B line of credit from the Bank of China -1.68% to fund projects that involve Chinese companies as contractors or suppliers. The LOC is particularly aimed at the renewable energy unit, Enel Green Power +3.42%, which just broke ground on what will be Latin America's largest wind-farm.

Eco Tomorrow: US Markit Manufac. PMI, US Existing Home Sales, US Leading Index, Taiwan Unemployment, Japan Nikkei PMI Mfg, Thailand Foreign Reserves, France Markit PMI, Germany Markit/BME PMI, Eurozone PMI, UK Retail Sales, and much more…