Research Market strategy
By Swissquote Analysts
Published on 24.06.2021
Morning news

Europcar rejects takeover offer

Topic of the day

The Board of Directors of Europcar Mobility Group has recently received an expression of interest regarding a possible transaction on the company's share capital. After studying this proposal carefully, the Board of Directors of the Company has concluded that the price of EUR0.44 per share proposed does not reflect the Company's full value and value creation potential. Further discussions may take place, which the Company does not intend to comment, unless required by law. Europcar Mobility Group is a major player in mobility markets and listed on Euronext Paris. Europcar Mobility Group's purpose is to offer attractive alternatives to vehicle ownership, in a responsible and sustainable manner. With this in mind, the Group offers a wide range of car and van rental services -- be it for a few hours, a few days, a week, a month or more -- with a fleet that is already "C02 light" and equipped with the latest engines, and which will be increasingly "green" in the years to come (more than 1/3 electric and hybrid vehicles by 2023). Europcar Mobility Group delivers its mobility solutions worldwide through an extensive network in over 140 countries.

Swiss stocks

The Swiss stock market on Wednesday extended the previous day's losses. Even the statements of U.S. Federal Reserve Chairman Jerome Powell did not support. He had reiterated the previous evening that the Fed would not immediately tighten monetary policy in view of rather weaker U.S. economic data: The momentum in the U.S. economy slowed in June, as shown by the composite index compiled by IHS Markit. The services sector in particular fared less favorably. Following the data, the market extended losses. The SMI shed 0.7 percent to 11,899 points. Among the 20 SMI stocks, there were 16 price losers and four winners. 30.47 (previously: 26.96) million shares were traded. Across Europe, the luxury goods sector was under pressure. "HSBC has been particularly skeptical," said a trader. Richemont fell 0.7 percent, but Swatch held its own, up 0.3 percent. UBS and Deutsche Bank had nevertheless raised the price targets for Richemont and Swatch. While Sika led the tableau with plus 0.4 percent, discounts in the heavily weighted pharmaceutical sector pulled the market down - Roche and Novartis lost 1.4 and 1 percent, respectively. Reinsurer Swiss Re (down 0.6 percent) monetized part of its stake in Phoenix Group. The group sold 6.6 percent of its shares for 437 million British pounds in an accelerated placement. Following the previous day's weakness, shares in online pharmacy Zur Rose exited trading unchanged, reversing interim losses.

International markets


European stocks struggled on Wednesday despite fresh data showing eurozone business activity growing at the fastest rate in 15 years. The Stoxx Europe 600 index fell 0.7% to 453.1 points. In Paris, the CAC 40 and the SBF 120 each gave up 0.9%. In Frankfurt, the DAX 30 lost 1.2%, while in London, the FTSE 100 ended unchanged (-0.02%). Data were swinging into focus for Wednesday, with the IHS Markit flash eurozone composite purchasing managers index for June climbing to 59.2 from 57.1 in May, and marking an 180-month high. That's as economies in Europe continued to reopen and COVID-19 vaccines rolled out across the continent. Among stocks on the move, shares of Pernod Ricard rose 2%, after the French drinks group raised its guidance for fiscal 2021, citing a stronger-than-expected recovery. Pernod is now forecasting organic growth in profit from recurring operations for fiscal 2021 of around 16%, up from previous guidance of 10%. Vodafone shares rose 0.3%, after the telecoms giant said its entire European operations will be fully powered by electricity from renewable sources starting on July 1, as it aims to reach net zero carbon emissions by 2030. On the downside, shares of French luxury-goods group LVMH Moët Hennessy Louis Vuitton fell 2.1%. GlaxoSmithKline (+1% in London) expects its sales and earnings growth to be driven over the next five years by new vaccines and specialty drugs.

United States

The tech-heavy Nasdaq Composite claimed a second consecutive record Wednesday while broader stock indexes slipped in a quiet trading session. With major indexes trading near all-time highs, investors are parsing signals about the path of the economy and the intentions of the Federal Reserve as they consider how much more of a rally might be in store. The S&P 500 fell 4.60 points, or 0.1%, to 4241.84, off 0.3% from its record close last week. The Dow Jones Industrial Average dropped 71.34 points, or 0.2%, to 33874.24. The Nasdaq Composite gained 18.46 points, or 0.1%, to 14271.73, its 16th record close of 2021. Among individual stocks Wednesday, shares of Fannie Mae and Freddie Mac plunged more than 30% after the Supreme Court rejected most claims by investors who challenged a government decision to channel the mortgage giants’ profits to the Treasury Department. Occidental Petroleum gained 3%. Microsoft (-0.1%) remained above the $2 trillion market capitalization mark, after becoming the second U.S. stock after Apple to cross this threshold the previous day. Amazon's (-0.05%) proposed $8.45 billion takeover of MGM movie studios will be reviewed by the Federal Trade Commission (FTC), whose new chairwoman, Lina Khan, has often criticized the online retail giant's practices, people close to the matter told The Wall Street Journal. Electronic Arts (-1.6%) announced the acquisition of mobile game studio Playdemic for $1.4 billion in cash from AT&T and Warner Bros. Games. Intel (-1%) named executives to head new operating divisions. The company plans to split its Data Platform Group into two divisions, focusing on data centers and artificial intelligence on the one hand and networks on the other.


The Tokyo Nikkei index closes at 28,883 points minimally above the previous day's level. The most activity is still in Seoul, where the Kospi is up 0.36 percent. In Hong Kong (0.08%) continued gains in the technology sector help to defend the previous day's gain. The biggest winners in the HSI are Xinyi Solar, which are up around 4 percent. The Shanghai Composite closes with a minus of 0.15%.


Yields for government debt rose slightly across the board Wednesday, a day after Fed Chairman Jerome Powell on Tuesday reiterated that the central bank expects rising inflationary pressures to prove transitory. Fixed-income markets saw some movement, as another Fed official on Wednesday signaled a willingness to hike benchmark rates as soon as late 2022. The 10-year Treasury note yield was at 1.486%, climbing 1.5 basis points and notching a second straight day of gains.


Deutsche Bank increases Richemont target to CHF 130 (127) - Buy
Metzler lowers Shop Apotheke to Hold (Buy)/Target EUR 155 (158)
Deutsche Bank raises Swatch target to CHF 335 (325) - Buy

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