Disclaimer

Our systems have detected that you are using a computer with an IP address located in the USA.
If you are currently not located in the USA, please click “Continue” in order to access our Website.

Local restrictions - provision of cross-border services

Swissquote Bank Ltd (“Swissquote”) is a bank licensed in Switzerland under the supervision of the Swiss Financial Market Supervisory Authority (FINMA). Swissquote is not authorized as a bank or broker by any US authority (such as the CFTC or SEC) neither is it authorized to disseminate offering and solicitation materials for offshore sales of securities and investment services, to make financial promotion or conduct investment or banking activity in the USA whatsoever.

This website may however contain information about services and products that may be considered by US authorities as an invitation or inducement to engage in investment activity having an effect in the USA.

By clicking “Continue”, you confirm that you have read and understood this legal information and that you access the website on your own initiative and without any solicitation from Swissquote.

Research Market strategy
by Swissquote Analysts
Morning News

Michelin 2018 Profit Fell on Tough Economic, FX Backdrop

Topic of the day

Compagnie Generale des Etablissements Michelin's after-tax and net profit both dropped in 2018, dragged down by a challenging economic environment and adverse currency effects, the French tire maker said. After-tax profit slipped to 1.66 billion euros ($1.87 billion) last year from EUR1.69 billion a year earlier, the company said. Net profit fell to EUR1.68 billion from EUR1.70 billion last year. Revenue rose to EUR22.03 billion from EUR21.96 billion, it said. The company said currency effects had a EUR271 million negative impact on its results. Analysts had expected Michelin to post 2018 net profit of EUR1.72 billion on revenue of EUR21.75 billion, according to a consensus forecast provided by FactSet. Michelin said it will declare a dividend of EUR3.70 a share, up from EUR3.55 last year. The company expects its 2019 segment operating income--its key operating measure--to exceed last year's figure of EUR2.77 billion at constant exchange rates. Michelin shares lost roughly one-fourth of their value to EUR90.76 in the last 12 months, in line with a similar decline in the STOXX Europe 600 Automobiles & Parts index as the whole sector is buffeted by trade wars, a slowdown in Chinese production and the emergence of new disruptive technologies.

Swiss stocks

The SMI closed up 0.7 percent on 9,069 points Monday with all 20 stocks higher, yet economic and political risks remain high as the US-China trade talks entered a new phase Monday. Good news came in the form of a bilateral UK-Switzerland trade agreement for the post-Brexit era. The UK is a key trade partner for Switzerland. Julius Baer rose 2.7 percent, followed by cyclical stocks SGS, Sika, Geberit and Adecco, which all rose by up to 2.1 percent. Roche closed up 0.7 percent after reporting 2018 turnover in Germany had maintained at the previous year’s level, as demand for new drugs compensated for expired drug patents. Among second-tier stocks, biotech company Kuros surged 17.8 percent after closing a supply contract with US company Seaspine. Packaging company Airopack Technology slumped 61.7 percent when key creditors refused the group further credit, apart from its operational subsidiary. Med tech group Straumann rose 3.9 percent after analysts increased their target for the stock.

International markets

Europe

The Stoxx Europe 600 rose 0.85%, or 3.05 points to 361.12 as dealers shrug off a lackluster start to the week's trading in New York. Germany's DAX and France's CAC-40 both gained about 1%. "A slow start to the U.S. session threatens to undermine the gains seen in Europe, but with trade concerns now front and center once again, it's not surprising to see Wall Street struggling to build up a decent head of steam," said an analyst at IG. Italian banks advanced after reducing bad loans by 30% year-on-year in thefourth quarter, according to Citigroup. Banco BPM was the top pan-European riser, gaining 7%.

United States

The S&P 500 struggled to find direction as trade tensions simmered ahead of another round of negotiations between U.S. and Chinese officials. With more than half of the companies in the broad index having reported fourth-quarter results, investors have turned their attention toward the continuing trade spat between the world's two largest economies. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are scheduled to meet China's vice premier later in the week in Beijing. The S&P 500 fell less than 0.1% in recent trading, the latest in a series of small moves above and below the flatline Monday. The Dow Jones Industrial Average shed 68 points, or 0.3%, to 25036, while the Nasdaq Composite rose less than 0.1%. Communication stocks were the biggest drag on the broad index, with the sector falling 0.6%. Videogame company Activision Blizzard fell 6.8%, while Take-Two Interactive Software shed 3.7%, extending their losses so far this month into the double digits on a percentage basis. Industrial stocks, meanwhile, were among the best-performing stocks in the broad index Monday. Aluminum-parts manufacturer Arconic and railroad company Norfolk Southern both rose more than 3%, triggering more modest gains throughout the S&P 500's industrial sector Norfolk Southern added 3.9% to lead the sector higher after it unveiled a strategic plan focused on increased productivity and revenue growth, as well as achieving a dividend payout ratio of 33%. Arconic rose 3.1% after the company said Friday that it would spin off either its aluminum-sheet rolling or aerospace-components unit.

Asia

Asian stocks rose Tuesday following a listless day on Wall Street as investors looked ahead to the trade talks in Beijing. Tokyo's Nikkei was the standout performer, rising almost 3%. Stocks in China rose strongly too.

Bonds

U.S. government bond prices fell as China and the U.S. start a new round of trade negotiations this week. The yield on the benchmark 10-year Treasury note rose to 2.661%, according to Tradeweb, from 2.632% Friday. Yields, which rise when bond prices fall, climbed as investors focused on a resumption in the talks. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are scheduled to meet with China's vice premier later in the week.

Analysis

UBS raises Zurich Insurance target to 315 (307) CHF - Neutral
IR raises Ceconomy target to 3,50 (2,80) EUR - Sell
IR lowers Osram target to 36 (40) EUR - Hold
HSBC raises Sanofi target to 82 (72) EUR - Hold


Produced by MBI Martin Brückner Infosource GmbH & Co. KG on behalf of Swissquote. All news is acquired with journalistic accuracy. No liability is assumed for delays or errors.

 
Live chat