Research Market strategy
By Swissquote Analysts
Published on 26.11.2021
Morning news

Remy Cointreau Shares Jump

Topic of the day

Shares in Remy Cointreau SA trade sharply higher in trade Thursday after the French drinks group posted consensus-beating first-half profit figures, and said that it anticipates higher full-year earnings than previously expected. Doubling on year to 212.9 million euros ($238.5 million), Remy’s current operating profit for the six months to Sept. 30 was above consensus, which had expected EUR157 million, according to a poll of analysts provided by FactSet. The result demonstrated impressive leverage, with the operating margin rising more than eight points to an all-time high of 33%. Remy’s first-half sales increased by 52% organically to EUR645.3 million. As well as higher volumes, the operating margin was boosted by price effects, with greater contribution from mid-range cognac brands Remy Martin Club in China and 1738 Accord Royal in the U.S., the company said.

Swiss stocks

The Swiss stock market ended Thursday's trading session with gains. Slight gains were already recorded on the previous day. However, it was not yet enough to make up for Tuesday's setback. Above all, the Corona pandemic, which is still rampant, is weighing on sentiment and causing concern about global economic development. In addition, investors held back in view of the Thanksgiving holiday in the USA. The SMI gained 0.4 per cent to 12,450 points. Among the 20 SMI stocks, there were 16 gainers and 4 losers. A total of 18.72 (previously: 28.39) million shares were traded. Swiss Life was the day's winner with a plus of 3.6 per cent. At its capital markets day, the insurance group announced an increase in fee income to 850 to 900 million Swiss francs by 2024. While this is in line with Citigroup estimates, it is 5 per cent above market estimates. The CHF 1 billion share buyback programme was also larger than expected, it said. Citigroup had previously expected buybacks of 200 million francs a year over a three-year period. Luxury stocks also did well. Richemont (+1.3%) was able to continue the upward movement of the previous day. The share of competitor Swatch (+1.1%) also went up, after the share had lost out the day before. Among the banks, UBS rose 0.3 per cent, while Credit Suisse ended the day 0.3 per cent lower.

International markets

Europe

European equity markets closed in the green on Thursday, in reduced volumes due to the closure of US markets for Thanksgiving. Investors are analysing the minutes of the latest meetings of the European Central Bank (ECB) and the Federal Reserve (Fed). The Stoxx Europe 600 index gained 0.4% to 481.7 points. In Paris, the CAC 40 and the SBF 120 gained 0.5% each. In Frankfurt, the DAX 40 gained 0.3%, as did the FTSE 100 in London. Sweden’s central bank on Thursday kept its key repo rate at 0%, as expected, and indicated that a first rate hike will likely come toward the end of 2024. The Riksbank had previously said it expected the repo rate to remain unchanged at zero throughout its forecast horizon that ran to the third quarter of 2024, but updated forecasts presented Thursday show a rate hike in the fourth quarter of 2024. The bank also said it will begin reducing its balance sheet ahead of the forecast rate hike “The Executive Board’s forecast is that the asset holdings will remain approximately unchanged in 2022 and then decrease gradually,” it said. Assicurazioni Generali SpA is in exclusive talks to buy Credit Agricole SA’s La Medicale business, the two companies said late Wednesday. La Medicale is Credit Agricole Assurances’ insurance subsidiary for healthcare professionals. Generali would also buy the death-coverage portfolio of Predica, a life insurer fully owned by Credit Agricole’s insurance business. La Medicale’s annual premiums stood at 552 million euros ($618.3 million) at the end of last year, including EUR80 million in premiums related to Predica’s death coverage portfolio. The deal could value the assets at around EUR400 million, a person close to the negotiations told The Wall Street Journal.

United States

Wall Street markets were closed Thursday for the Thanksgiving holiday. They reopen Friday for a shortened trading session.

Asia

Concerns about a renewed worsening of the Corona pandemic are sending the Asian stock markets down at the end of the week. The concern is the possible spread of a new variant of the virus, which has so far been detected mainly in South Africa, but has also appeared elsewhere. According to South African scientists, the new variant has a "very high number of mutations" and is "cause for concern". The effectiveness of vaccines against this variant is still unclear. Britain has already suspended travel to six African countries because of the new variant. The decline was even more pronounced in Tokyo, where the Nikkei 225 fell by 2.8 per cent. In the meantime, the index had already lost a good 3 per cent.

Bonds

US Treasury yields are falling Friday morning from their Wednesday levels, also affected by the discovery of a new, potentially dangerous variant of Covid-19 in South Africa. The yield on the 10-year Treasury note, the market's benchmark, fell to 1.548% from 1.641% on Wednesday evening. Bond markets were closed Thursday in the US for Thanksgiving.

Analysis

IR raises the National Grid target to 970 (960) p – Hold
IR lowers the Enel target to EUR 7.90 (8.10) – Buy
Deutsche Bank raises the Dt. Pfandbriefbank target to EUR 13 (11) – 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.