Research Market strategy
By Swissquote Analysts
Published on 02.08.2021
Morning news

Vonovia Launches New Takeover Attempt for Deutsche Wohnen

Topic of the day

German real estate group Vonovia plans to launch another takeover attempt for Berlin-based rival Deutsche Wohnen soon. Vonovia SE said Sunday night that it plans to offer 53 euros per Deutsche Wohnen share - 1 euro more than the offer that failed a week ago. Vonovia and Deutsche Wohnen had renewed the previous business combination agreement for a merger over the weekend, as both groups still consider a merger "strategically and socio-politically sensible" despite the recently failed takeover bid, the companies said. Both companies had gained the impression from recent shareholder discussions "that this strategic logic is seen. In addition, many shareholders regretted that the transaction was not successful. We do not want to deprive them of the opportunity to approve the merger on improved terms."

Swiss stocks

The Swiss stock market ended trading on Friday with slight gains. The focus was again on the ongoing reporting season. The SMI gained 0.2 per cent to 12,117 points. Among the 20 SMI stocks, there were twelve price losers and eight price winners. 36.61 (previously: 40.09) million shares were traded. The SMI was supported by index heavyweight Nestle (+1.0%). The food group had presented figures for the first half of the year on Thursday and reported an increase in profit. In addition, the sales forecast for the full year was raised. The two pharmaceutical giants Novartis and Roche were also in demand. The shares moved up by 0.4 and 0.8 per cent respectively. Lonza was the day's winner with a gain of 1.8 per cent. Swiss Re AG returned to profit in the first half of the year and expects the losses related to the coronavirus to decrease in the coming quarters thanks to vaccination campaigns. The share nevertheless fell significantly by 3.2 per cent. Investors are likely to have taken accumulated profits here. Other stocks from the sector also lost out somewhat. Zurich Insurance fell by 0.4 per cent and Swiss Life by 0.3 per cent.

International markets


European stock indices ended lower on Friday, following a series of economic indicators and corporate results. The Stoxx Europe 600 index lost 0.5% to 461.7 points, returning to near balance for the week. In Paris, the CAC 40 and the SBF 120 fell by 0.3% each on Friday. In Frankfurt, the DAX 30 dropped 0.6% while the FTSE 100 in London erased 0.7%. Inflation accelerated to 2.2% year-on-year in July, after a 1.9% rise in June, driven by energy prices. BNP Paribas SA said Friday that second-quarter net profit and revenue rose as it booked lower provisions and its domestic markets division rebounded, while it will distribute another dividend. France’s largest listed bank by assets posted net profit for the period of 2.91 billion euros ($3.45 billion), up from EUR2.30 billion a year earlier and beating expectations of EUR2.46 billion, according to a consensus provided by FactSet. Revenue edged up 0.9% to EUR11.78 billion, it said. Its investment-bank division posted lower revenue, with global-markets revenue down 17% and corporate banking revenue 1.6% lower. International Consolidated Airlines Group SA said Friday that it was ready to take advantage of a surge in air travel demand in line with increasing vaccination rates but it remains unable to provide full-year guidance. It said capacity for the third quarter will be around 45% of 2019’s level, although this remained uncertain and was subject to a continuing review.

United States

U.S. stocks hung on to their gains for July, despite drifting lower in a quiet final trading session of the month. A monthslong rally in U.S. stocks has slowed down in recent weeks on worries about the outlook for the economy, which some investors worry may stumble as coronavirus case counts rise again. Lingering concerns over China's clampdown on its internet and technology businesses, as well as lofty expectations for corporate earnings, also weighed on sentiment this week.'s disappointing sales report late Thursday and weaker outlook rattled Wall Street further, investors said. Nevertheless, the S&P 500 managed to close out July with another month of gains, thanks in part to rallying shares of utilities and real-estate companies. The bondlike stocks tend to pay hefty dividends to investors, making them look relatively attractive when markets are volatile. The S&P 500 fell 23.89 points, or 0.5%, to 4395.26 Friday and rose 2.3% in July-marking its sixth consecutive month of gains. The Dow Jones Industrial Average slipped 149.06 points, or 0.4%, to 34935.47 and posted a 1.3% gain for the month. The Nasdaq Composite lost 105.59 points, or 0.7%, to 14672.68 and added 1.2% for the month. Exxon Mobil Corporation (NYSE:XOM) today announced estimated second-quarter 2021 earnings of $4.7 billion, or $1.10 per share assuming dilution, compared with a loss of $1.1 billion in the second quarter of 2020. Second-quarter capital and exploration expenditures were $3.8 billion, bringing the first half of 2021 to $6.9 billion, which is consistent with planned lower activity in the first half of the year. The company anticipates higher second-half planned spending on key projects, including Guyana, Brazil, Permian and in Chemical, with full-year spending towards the lower end of the guidance range of $16 billion to $19 billion. The Procter & Gamble Company (NYSE:PG) announces fourth quarter and fiscal year 2021 results. David Taylor, Chairman, President and Chief Executive Officer said, "We delivered another year of strong results with balanced top and bottom-line growth and strong cash generation, exceeding each of our in-going targets. We built strong momentum prior to the pandemic and have strengthened our position further. As we look forward to fiscal 2022, we expect to continue to grow top-line and bottom-line and to deliver another year of strong cash return to shareholders despite a challenging cost and operating environment."


On the first trading day in August, positive signs predominate on the stock exchanges in East Asia and Australia. Observers speak of a countermovement after the region's stock exchanges fell sharply on Friday. In Tokyo, the Nikkei 225 index is up 1.9 per cent at 27,805 points.


The 10-year US-Treasury ended July with the largest decline since March 2020, losing 0.204 percentage point to 1.239%, as investors reevaluate the economic outlook in face of renewed threats from Covid-19's Delta variant.


JP Morgan lowers Totalenergies target to 55 (56) EUR – Overweight
CS rises Airbus target to 137 (134) EUR – Outperform
CS rises Lloyds Banking target to 61 (60) p – Outperform

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