[MARKET ANALYSIS] European equities entirely in the green as US and China close for holiday celebrations

• European bourses (STOXX 600 +0.3%) are entirely in the green, with the IBEX (+1.2%) leading the way while the SMI (+0.1%) underperforms. The Swiss economy grew in Q4 at a pace of 0.2%, however, weaker than expectations, which is weighing on the Swiss index.
• Sectors are mixed. Banks (+2.1%) and Financial Services (+1.3%) lead the pack, rebounding from last week's losses, as yields stabilise. Sitting at the bottom are Basic Resources (-0.7%) and Chemicals (-0.5%) as China's Lunar New Year celebrations get underway and ahead of a busy week of earnings for miners.
• Key movers include NatWest (+4.0%), Norsk Hydro (-3.2%) and UK home builders such as Barrett Redrow (-2.3%) and Taylor Wimpey (-1.5%). NatWest started its GBP 750mln share buyback programme today and had its price target raised at AlphaValue. For other broker moves, Norsk Hydro was downgraded at multiple brokers following their earnings last week, and Barrett Redrow was downgraded to Add from Buy at Peel Hunt. Further, for the UK home builder, Rightmove's House Price Index showed no growth on a yearly basis, which is weighing on prices today, due to the uncertainty of property tax changes in November's Budget.
• US equity futures (ES/NQ/RTY +0.4%) are in the green, following their European counterparts. The US cash trade is closed today for President's Day.

European equities are showing a solid performance this session, led by the IBEX, while Swiss indices lag due to weaker-than-expected economic growth. Meanwhile, sector dynamics indicate that banks are rebounding from prior losses, benefiting from stabilizing yields, whereas basic resources are under pressure due to the Lunar New Year celebrations in China. Notably, US markets are closed for a holiday, which may influence trading volumes and investor sentiment in Europe.