By Swissquote Analysts
Thyssenkrupp Working Toward Nucera IPO by Summer
Topic of the day
Thyssenkrupp AG is working on listing its electrolysis subsidiary Nucera by the end of June, its finance chief said Wednesday. The German industrial company's goal remains an initial public offering as soon as possible, taking into account the market environment, Chief Financial Officer Klaus Keysberg said at a media conference after second-quarter results. Thyssenkrupp's Chief Executive Martina Merz had previously said a decision on an IPO could be taken in the first half of the calendar year, at the annual general meeting in early February.
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After a volatile trading day, the Swiss stock exchange ended Wednesday with slight gains. The SMI gained 0.1 per cent to 11,554 points. Among the 20 SMI stocks, there were 16 price gainers and four price losers. 45.64 (previously: 38.52) million shares were traded. Roche was very weak. The share price fell by 6.9 per cent. "A cancer drug missed the primary endpoint," a trader said. This had been seen as a possible "catalyst" for the group, coupled with high hopes, he said. "Now it has to be factored out of the pipeline value," the market participant said, adding, "This justifies the share price discount." Unexpectedly strong business figures helped Alcon shares rise 9.2 per cent. Zur Rose rose by 9.7 per cent. In the retail sector, reference was made to a report in the trade journal Apotheke Adhoc, according to which the e-prescription is to become compulsory in Germany from September.
European equity markets closed sharply higher on Wednesday, benefiting from cheap buying and clarification from the European Central Bank (ECB) president on the institution's rate intentions. The Stoxx Europe 600 index gained 1.7% to 427.6 points. In Paris, the CAC 40 and the SBF 120 rose by 2.5% and 2.3% respectively. In Frankfurt, the DAX 40 gained 2.2%, while in London, the FTSE 100 gained 1.4%. Alstom SA said Wednesday that its fiscal 2022 sales and adjusted earnings increased on year on strong order growth. The French train maker’s adjusted earnings before interest and taxes, its key indicator, rose to 767 million euros ($807.8 million) in the 12 months to the end of March from EUR645 million in fiscal 2021. Sales rose 76% to EUR15.47 billion, while its order intake more than doubled to EUR19.26 billion. The Paris-based company’s net income, which doesn’t include adjustments related to its merger with Bombardier Transportation, swung to a loss of EUR581 million from a profit of EUR247 million last year. E.ON SE on Wednesday said that profit rose in the first quarter and backed its full-year outlook even though its quarterly performance was hit by a difficult market environment and high energy costs. The German utility said it registered a net profit of 830 million euros ($875.7 million) in the quarter, up from EUR801 million a year earlier. On an adjusted basis, profit came in at EUR679 million. Adjusted earnings before interest and taxes were down to EUR2.08 billion from EUR2.45 billion a year earlier, while sales jumped to EUR29.51 billion from EUR18.40 billion.
Stocks fell Wednesday after fresh data showed that inflation--though easing--remained higher than expected last month, feeding renewed apprehension about the Federal Reserve's likely response and extending a punishing stretch for equities. bThe S&P 500 declined 65.87, or 1.6%, to close at 3935.18. The Dow Jones Industrial Average fell 326.63, or 1%, to 31834.11, while the technology-focused Nasdaq Composite was down 373.44, or 3.2%, to 11364.24, its lowest close since November 2020. The day offered no relief for anxious stock investors, who have been bracing for the Fed to remove more of its economic support. Trading was bumpy. The S&P 500 turned lower in the afternoon after spending much of the morning in the green, and its losses deepened as the closing bell neared. There is a long way to go before rising prices come back under control, investors and analysts warned, giving rise to volatility as financial conditions continue to tighten. The consumer-price index increased 8.3% in April from the same month a year ago, data released Wednesday morning showed, decelerating from an 8.5% annual rate in March but above the 8.1% expected by economists. Lower annual inflation last month marks the first monthly easing of price increases since August 2021. Kohl's stock fell $2.74, or 5.6% to $46.65 as shareholders rejected an activist investor's push to replace up to 10 directors as the retailer is exploring a potential sale. Switch rose $2.79, or 9.1%, to $33.54 after the computer-services company said it was being taken private by a consortium of investors. On the other hand, strong earnings reports from some companies drove gains. Shares of Electronic Arts rose $8.89, or 8%, to $120.49 after the videogame company said revenue in the latest fiscal year rose 24% to $6.99 billion. Doughnut chain Krispy Kreme logged a rise of 46 cents, or 3.8%, to $12.67 after reporting earlier Wednesday that net revenue jumped 16% year over year in the three months through March.
Negative signs predominate on the stock markets in East Asia and Australia on Thursday. In Tokyo, the Nikkei 225 index falls by 1.3 per cent. In The Hang Seng Index in Hong Kong slips 1.1 per cent. In Shanghai, on the other hand, the winning streak of the past few days continues, albeit at a much slower pace: the Composite Index holds up well.
The yield on the two-year U.S. Treasury note—highly responsive to expected Fed tightening—rose to 2.629%, from 2.623% at Tuesday's settlement. The yield on the 10-year Treasury, meanwhile, declined to 2.918%, from 2.990% a day earlier. Bond yields fall as prices rise.
UBS lowers the IAG target to 180 (196) p – Buy
CS raises the Bayer target to EUR 62 (56) – Neutral
DZ lowers the Thyssen target to EUR 10.50 (12) –Buy
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