Research Market strategy
By Swissquote Analysts
Published on 17.08.2022
Morning news

Biden signs climate and health investment plan into law

Topic of the day

U.S. President Joe Biden signed into law his massive climate and health investment plan, giving his Democratic camp a major political victory less than three months before crucial congressional elections. The biggest investment in the United States in the fight against climate change, the text provides a series of financial incentives to shift the U.S. economy toward renewable energy, limits the price of some drugs and creates a minimum tax rate on large corporations. "A country can be transformed. That's what's happening today," Biden said in an election-year speech before signing the "Inflation Reduction Act" at the White House. The result of difficult negotiations with the right wing of the Democratic Party, the package includes the largest ever investment in the United States for the climate - $370 billion to reduce greenhouse gas emissions by 40% by 2030.

Looking for New Structured Product Ideas?

Swiss stocks

The Swiss stock exchange ended trading on Tuesday with losses. It thus lagged behind its European neighbouring stock exchanges - a trend that has already been observed for around two weeks. The SMI steadily extended its losses until the afternoon, before the losses were reduced in late trading. The SMI lost -0.4 per cent to 11,130 points. Among the 20 SMI stocks, there were ten price losers and ten price gainers. 20.44 (previously: 18.74) million shares were traded. The Straumann share (-8.3%) came under significant pressure, although the company had presented convincing figures for the second quarter. However, the outlook then surprised, as it was only confirmed for the full year. This would mean lower growth than expected by the market for the coming months, and the EBIT consensus would also have to be lowered slightly. UBS analysts described Straumann's organic growth in the US as weak, with macroeconomic headwinds and inflation weighing. A surprising profit warning from Sonova spooked investors, and the share subsequently fell by almost 16 per cent.

International markets


After a volatile session, the European stock markets managed to close once again in the green, in a context marked by the publication of contrasting economic indicators. At the close, the Stoxx Europe 600 index advanced by 0.2% to 443.1 points. In Paris, the CAC 40 and the SBF 120 rose by 0.3% each. The DAX 40 in Frankfurt gained 0.7% and the FTSE 100 in London gained 0.4%. H&M resumed sales on a popular e-commerce platform in China, more than a year after the Swedish fashion brand was virtually erased from the Chinese internet after it expressed concerns about reports of forced labor in the country’s Xinjiang region. Chinese social-media users noticed this month that H&M Hennes & Mauritz AB reopened its official store on Tmall, one of the flagship e-commerce platforms run by Alibaba Group Holding Ltd. Royal Philips NV said Tuesday that it has appointed Roy Jakobs as chief executive officer with effect from Oct. 15. The Dutch health-technology company said current CEO Frans van Houten, who is serving his third term, will act as the company’s advisor and support the transition until April 30. “Roy Jakobs has been successful in turning around businesses in customer-focused growth organizations and has effectively strengthened the company’s connected care portfolio through successful acquisitions across hospital and ambulatory care settings,” the company said.

United States

U.S. stock indexes ended Tuesday mostly higher as investors parsed better-than-expected earnings from major retailers that showed consumers are still shopping despite high inflation. The S&P 500 added 8.06 points, or 0.2%, to 4305.20 after opening lower. The technology-focused Nasdaq Composite shed 25.50 points, or 0.2%, to 13102.55. The Dow Jones Industrial Average gained 239.57 points, or 0.7%, to 34152.01. Stocks have largely rallied in recent days, with the S&P 500 climbing for four straight weeks as of last Friday. Some investors view the rally as a sign of easing negative sentiment. Others believe that the momentum may be fading, citing recent weak data on China's economy and U.S. manufacturing. Walmart rose $6.77, or 5.1%, to $139.37 after the big-box retailer reported earnings that beat estimates. The company also raised its outlook for the fiscal year, less than a month after it had issued a profit warning. Its CEO said the company had been able to cut costs in its supply chains. Home Depot gained $12.77, or 4.1%, to $327.38 after the retailer posted record quarterly sales and earnings that beat Wall Street's estimates but also said customer transactions had declined. Target and Lowe's are set to report earnings Wednesday. "I think there are some clues that the consumer is starting to say, how can I save some money and buy some of these cheaper items -- house brands versus some name brands," said Jon Maier, chief investment officer at Global X ETFs. New data showed that housing starts in the U.S. declined in July from the previous month and were lower than economists had forecast.


Prices on the East Asian stock exchanges and in Sydney are on the rise on Wednesday. The gains range from 0.2 per cent in Sydney to 1.0 per cent in Tokyo, where the Nikkei 225 index rises to 29,159 points. The only exception is Seoul, where the Kospi is down 0.6 per cent.


The U.S. bond market continued to flash a recessionary signal on Tuesday, with the yield curve remaining inverted. The yield on the benchmark 10-year Treasury note rose to 2.822%, up from 2.790% Monday, while the two-year yield reached 3.249%.


CS lowers Henkel target to EUR 64 (66) – Neutral

JP Morgan lowers Eon target to EUR 10.50 (12.50) – Neutral

Deutsche Bank raises LSE target to 8,000 (7,500) p – Hold

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.