Key Takeaways
- Air Liquide (AI) reported full-year revenue of €26.94 billion, narrowly missing analyst estimates of €27.07 billion, but significantly increased its dividend to €3.70 per share.
- HSBC issued a series of high-profile rating changes, downgrading Walmart (WMT) to Hold while raising price targets for Merck & Co (MRK) and Occidental Petroleum (OXY).
- Hungary’s MOL (MOL) has been granted priority access to national strategic crude oil reserves to ensure supply stability following the total halt of deliveries via the Druzhba pipeline.
- Asian markets, led by the Hang Seng, retreated on their first day of trading following the Lunar New Year break, pressured by a negative lead from Wall Street and concerns over private credit funds.
Air Liquide Posts Steady Earnings and Dividend Hike
Industrial gas giant Air Liquide (AI) released its full-year financial results today, showing resilient performance despite slight misses on top-line estimates. The company reported recurring operating income of €5.58 billion, just shy of the €5.60 billion anticipated by the market, while its recurring operating margin settled at 20.7%.
In a move to reward shareholders, the company announced a dividend of €3.70 per share, up from €3.30 the previous year. Analysts noted that while the revenue miss was marginal, the robust dividend increase signals management's confidence in long-term cash flow stability and operational efficiency.
HSBC Adjusts Outlook for Retail, Pharma, and Energy
HSBC shook up the retail sector this morning by downgrading Walmart (WMT) from Buy to Hold. The downgrade follows Walmart's recent cautious guidance for the 2026 fiscal year, where the company cited tariff uncertainty and moderating inflation as potential headwinds. Despite the rating cut, some analysts pointed to Walmart's continued dominance in e-commerce as a long-term floor for the stock.
Conversely, HSBC remains bullish on the healthcare and energy sectors. The bank raised its price target for Merck & Co (MRK) to $135 from $120, citing the company's credible strategy in oncology and its ability to manage upcoming patent cliffs. Additionally, the target for Occidental Petroleum (OXY) was increased to $59 from $54, reflecting a positive outlook on the company's Permian Basin execution and sustained free cash flow.
MOL Secures Priority Oil Access Amid Pipeline Disruptions
In a critical move for regional energy security, MOL (MOL) has been granted preferential access to Hungary's strategic crude oil reserves. The decision comes after a complete cessation of Russian crude deliveries through the Druzhba pipeline, which has been dry since January 27, 2026.
To bridge the supply gap, MOL is transitioning to maritime imports via the Adriatic port of Omišalj in Croatia. However, because sea transport involves significantly longer transit times, the release of approximately 250,000 tons of strategic reserves is deemed essential to maintain uninterrupted refinery operations in Hungary and Slovakia.
APAC Markets Slide Following Lunar New Year Break
The Hang Seng index faced a sharp retreat as it reopened after the Lunar New Year holidays, tracking a predominantly negative mood from Wall Street. Risk appetite was further subdued by emerging concerns regarding private credit funds and persistent geopolitical risks in the region.
Big tech names led the decline in Hong Kong, as investors recalibrated expectations following the holiday lull. Market participants are now closely watching for potential post-holiday support measures from Beijing to counter ongoing producer deflation and weak consumer sentiment.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.