Research Market strategy
By Swissquote Analysts
Published on 05.08.2021
Morning news

Boeing Starliner Launch Delayed by Valve Issue

Topic of the day

Boeing Co.’s planned Starliner flight was postponed after engineers found a problem with some valves on a propulsion system used on the space capsule, the company and National Aeronautics and Space Administration said. Boeing and NASA didn’t specify when they will again attempt to launch the Starline - which was due to travel to the International Space Station without cre - after saying teams need more time to understand what happened with the valves. NASA said some weren’t in proper configuration for the launch, which was scheduled for Aug. 3. Engineering teams have ruled out a number of potential causes, including software, the agency said. The high-profile flight was meant as a do-over for Boeing, after the Starliner failed to reach the space station in a late-2019 test flight because of software errors and following other delays. That botched mission dented the record of a company that has been at the forefront of U.S. space exploration, including the Apollo missions to the moon.

Swiss stocks

Friendly conditions from Asia lifted the Swiss stock exchange slightly on Wednesday. On a closing basis, the leading index SMI climbed to a record high. The high was supported by the strong balance sheet season, in which an above-average number of companies exceeded expectations. The SMI gained 0.1 per cent to 12,179 points. Among the 20 SMI stocks, there were twelve price gainers and six price losers, and two stocks closed unchanged. 26.54 (previously: 27.45) million shares were traded. Swatch (-3.5%) and Richemont (-1.9%) were the closing lights in the SMI. Strong China data failed to support the stocks; on the other hand, the focus was on new Corona infections in the country, which reached the highest levels of the year. More closures loom. Roche gained 0.4 per cent. Financial stocks tended to be mostly friendly and gained up to 1 per cent (Zurich Insurance), only Credit Suisse was hardly changed. The SMI was led by ABB (+1.1%), Geberit (+1.9%), Alcon (+1.3%) and Sika (+1.3%).

International markets


European stock indices closed higher on Wednesday, maintaining their momentum as Wall Street became more hesitant after the release of a series of mixed indicators. The Stoxx Europe 600 index gained 0.6% to 468.2 points. In Paris, the CAC 40 and the SBF 120 gained 0.3% and 0.4%, respectively. The DAX 30 rose 0.9% in Frankfurt, while the FTSE 100 in London gained 0.3%. In the eurozone, private sector activity accelerated less than initially estimated in July but is still at its highest level in 15 years, according to data from IHS Markit. The composite PMI for the eurozone stood at 60.2 in July, compared with 59.5 the previous month and a provisional estimate of 60.6 published on 23 July Commerzbank AG swung to a loss in the second quarter hit by one-off costs such as those related to its restructuring. The German bank said Wednesday that the net loss for the period was 527 million euros ($625.7 million) compared with a profit of EUR183 million a year earlier. The bank booked restructuring costs of EUR511 million and a write-off of EUR200 million for ending a project to outsource its securities settlement. Hugo Boss AG aims to sharply increase its revenue within the next five years, with a focus on digital sales and Chinese consumers, the German premium-fashion company said Wednesday. Setting out its strategy to 2025, Hugo Boss said it is targeting revenue of 4 billion euros ($4.75 billion) by 2025. In 2020, the company made sales of EUR1.95 billion, though this was sharply down from the previous year’s figure of EUR2.9 billion. As for profit, the company is aiming for a margin of earnings before interest and taxes of around 12% within the same timeframe. In order to attain these targets, the company will increase digital investment by more than EUR150 million by 2025, with online sales targeted to make up between 25% and 30% of the total. The company will also invest in its store network, its products and its branding.

United States

U.S. stocks fell after data showed the private sector added fewer jobs than economists expected in July, fueling concerns the rebound from the pandemic may be faltering. The S&P 500 ticked down 0.5%, a day after the broad-market index rallied to a record close. The Dow Jones Industrial Average retreated 0.9%. The Nasdaq Composite Index wavered between gains and losses, closing up 0.1%. A report from ADP showed that 330,000 jobs were added by the private sector in July, almost half the number that economists were expecting. Bottlenecks in hiring continue to hold back the labor market, according to ADP. Activity in the U.S. services sector accelerated in July from the previous month, hitting a new record high, amid an increase in demand and widespread supply-related problems. The ISM Services Report on Business PMI increased to 64.1 in July from 60.1 in June, data from a survey compiled by the Institute for Supply Management showed Wednesday. Economists polled by The Wall Street Journal forecast the PMI to come in at 60.5.General Motors Co. posted strong second-quarter earnings and raised its full-year profit guidance but said the lingering computer-chip shortage and rising commodity costs would weigh on second-half results. GM’s outlook for second-half profits disappointed investors. Shares fell about 8% in afternoon trading Wednesday, their biggest decline of the past year. The stock had been on a strong run, rising 39% this year through Tuesday and more than tripling since March 2020. Kraft Heinz stock is slipping after the maker of Heinz Ketchup reported earnings that topped analyst forecasts. Kraft Heinz reported an adjusted profit of 78 cents a share, beating forecasts for 72 cents a share, on sales of $6.6 billion, topping expectations for $6.55 billion.


On Thursday, the stock markets in East Asia and Australia are more or less treading water. The continuing rise in Corona case numbers is dampening the mood. In addition, there is negative news from the USA. Among the markets in the region, the Tokyo stock exchange stands out. The Nikkei 225 index rose by 0.5 per cent after the yen weakened significantly against the dollar.


In the U.S. bond markets Wednesday, the yield on the benchmark 10-year Treasury note rose to 1.183%, the largest one-day yield gain in nearly a week.


CS rises the SocGen target to 34 (32) EUR – Outperform
JPM rises the Stellantis target to 27 (20) EUR – Overweight
UBS rises the BP target to 410 (380) p – Buy

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