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Research Market strategy
by Swissquote Analysts
Morning News

Boeing Plane Deliveries Tumble So Far in 2019

Topic of the day

Boeing Co. said it delivered fewer planes in the first seven months of 2019 than a year ago - falling further behind rival Airbus SE - as the impact of grounding the 737 MAX jetliner weighs on the U.S. plane maker. Chicago-based Boeing delivered 258 planes this year through July, down from 417 planes in the same period a year earlier. Airbus shipped 458 planes this year through July, putting Airbus on track to surpass Boeing this year as the world’s biggest aircraft manufacturer. Boeing recorded a fifth straight month without any orders for the 737 MAX. The plane has been grounded by regulatorsaround the globe since March following two fatal crashes in less than six months. The plane maker has said it hopes the plane will resume flights in the fourth quarter, but some airlines and regulators have said they expect fixes to the plane’s software will be ready for the plane to be cleared to fly again next year. The prolonged grounding is starting to weigh on airlines and Boeing’s suppliers as well. Southwest Airlines Co. sped up its decision to stop flying at New Jersey’s Newark Liberty International Airport because of the grounding of its MAX fleet, and makers of some plane parts have cut production.

Swiss stocks

The hope of an end to the US China trading dispute also boosted the Swiss equity market on Tuesday. The SMI rose by 0.3 percent to 9,786 points. The ABB share was again in demand and gained 1.4 percent. It had benefited on Monday from the appointment of Björn Rosengren, Sweden, as the new CEO of the group and was now supported by the hope that a settlement of the trade conflict could possibly avert serious consequences for the economy and thus the earnings situation of the companies. For the same reason, Richemont and Swatch were also sought, which improved by 0.8% and 1.1% respectively. China is an important sales market for the two luxury goods manufacturers. In the banking sector, Credit Suisse closed 1 percent higher thanks to the recovery in bond yields. The UBS share fell 0.5 percent. Swiss Re's share price rose by 1 percent. Swiss Life nevertheless fell by 0.2%. The insurer's half-year figures were not well received.

International markets

Europe

European stocks staged a turnaround following news on the delay of some U.S. tariffs on China, with the Stoxx Europe rising 0.5% after falling as much as 1% earlier. The index was up 1.99 points to 372.40. London stocks closed higher. The FTSE 100 ended the session up 0.3% at 7250.90, helped by mining stocks. Mining giant Anglo American topped the list of blue-chip gainers, up 2.6%, with Antofagasta, Glencore and Rio Tinto also among the biggest risers. The French CAC-40 index was up 52.76 points, or 0.99%, to 5363.07, while the German DAX was up 70.45 points, or 0.60%, to 11750.13. Shares in Italian banks trade higher helped by a falling BTP-Bund spread. Banks are among the best performers on Italy's benchmark FTSE MIB index, with UBI Banca up 4%, while Intesa Sanpaolo and UniCredit gain 2.5% and 3.2% respectively. Banca Monte dei Paschi di Siena trades 8.5% higher. The lender said Tuesday it has sold bad loans worth roughly EUR340 million, taking the amount of nonperforming exposures sold in the past two weeks to almost EUR1.5 billion.

United States

Stocks jumped intraday as news that the U.S. would delay some tariffs against China rekindled investors' hopes for an eventual trade truce. The U.S. Trade Representative released a statement in Washington that the U.S. would delay and remove items from the roughly $300 billion of Chinese imports facing 10% tariffs on Sept. 1. The news sent investors rushing back into stocks after two days of declines for major U.S. stock indexes and an extended bout of market volatility. They also piled into commodities while shedding exposure to traditionally safer assets such as government bonds and gold. The S&P 500 advanced 1.6% in midday trading. The Dow Jones Industrial Average jumped more than 400 points, or 1.6% after a sharp decline Monday extended a recent bout of stock volatility. The Nasdaq Composite gained 1.9%. Shares of technology companies outperformed. The S&P 500's information-technology sector advanced about 2.2% in recent trading, making it the best performing of the S&P's 11 sectors.

Asia

Asian markets gained on U.S. decision to delay the imposition of tariffs on some Chinese goods. "Markets are responding with muted relief to the latest round in the trade saga - but nothing has really changed," said an analyst.

Bonds

U.S. Treasury yields jumped intraday after a higher-than-expected core inflation reading and reports of progress in U.S.-China trade negotiations sapped demand for safe assets like bonds. The 10-year Treasury note yield rose 4 basis points to 1.680%, while the 2-year note rate surged 8.5 basis points to 1.665%. The 30-year bond yield was up around a single basis point to 2.139% Debt prices move in the opposite direction of yields.

Analysis

Berenberg: "impressive" profitability of Dt.-Wohnen
IR raises Morphosys target to 116 (96) EUR - Hold
Warburg raises Secunet target to 138 (130) EUR - Buy
UBS adjusts CRH and Heidelcement targets - Buy


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.

 
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