Research Market strategy
By Swissquote Analysts
Published on 23.09.2022
Morning news

Airbus Backs 2025 Production Target Despite Supply-Chain Snarls

Topic of the day

Airbus SE still aims to increase its production rate of narrow-body planes to 75 a month in 2025 despite the difficulties it faces in securing enough engines and other components from its suppliers. The European plane maker’s target for its A320 family of aircraft remains unchanged, and takes into account its assessment of the readiness of its supply chain, a company spokesman said Thursday. On Wednesday, Reuters reported, citing unnamed sources, that the company had privately began to ease pressure on its suppliers with respect to the 2025 target. Boeing Co. ’s European rival said it acknowledged the current supply-chain challenges and that it adjusted its interim target two months ago to reflect this. In July, it said it expected to reach a rate of 65 planes a month by early 2024, six months later than previously projected;

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Swiss stocks

Swiss stocks ended lower on Thursday as sharp hikes in interest rates by several global central banks raised concerns about growth. The benchmark SMI, which dropped to 10,266.70 at the start, ended with a loss of 131.75 points or 1.26% at 10,297.65. After the Federal Reserve's 75-basis point rate hike on Wednesday, the Bank of England and the Swiss National Bank raised their respective interest rates today. The Swiss National bank raised its key interest rate to positive territory to counter the renewed rise in inflationary pressure. The central bank hiked the SNB policy rate by 0.75 percentage points to 0.5%, as expected. This was the second consecutive rate hike. Partners Group fell nearly 8%. Credit Suisse shed about 5.5% and Sika drifted down 4.1%, while Swiss Life Holding, Alcon, Geberit, Sonova, Givaudan, Richemont, Holcim, Logitech, UBS Group and ABB lost 2 to 4%. Nestle and Swisscom bucked the trend and ended higher by about 1% and 0.5%, respectively. In the Mid Price Index, Temenos Group plunged more than 7%. AMS, Straumann Holding, Tecan Group, VAT Group, Schindler Ps, Belimo Holding, Bachem Holding, Zur Rose, Georg Fischer and Schindler Holding lost 3 to 5.2%.

International markets


European stocks closed notably lower on Thursday amid concerns the interest rate hikes by the Federal Reserve, the Bank of England, and the Swiss National Bank will significantly slow down global economic growth in the coming quarters. The central banks have also signaled more interest rate hikes in the coming months to fight soaring inflation. The pan European Stoxx 600 shed 1.79%. The U.K.'s FTSE 100 drifted down 1.08%, Germany's DAX and France's CAC 40 ended lower by 1.84% and 1.87%, respectively, while Switzerland's SMI lost 1.18%. Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Portugal, Spain, Sweden ended notably lower. Norway ended with a modest loss, while Czech Republic, Poland, Russia and Turkiye closed higher. Ashtead Group, ICP, Hargreaves Lansdown, Dechra Pharmaceuticals, Segro, Entain, Land Securities, British Land, Intertek Group, Melrose Industries, Croda International, RS Group, Schrodders and Ocado Group lost 3 to 7.3%. Shares of mining company Polymetal plummeted 11.5% after the company said it is considering moving its main corporate base out of Russia. In Paris, Accor slumped nearly 7% after investment bank JP Morgan cut its rating on the stock from neutral to underweight, saying the group would not be able to return to its previous level of profitability.

United States

U.S. stocks dropped following the latest interest-rate increases from the Federal Reserve and other central banks, which have added to fears that the battle to control rising prices could bring a recession. The S&P 500 lost 31.94, or 0.8%, closing at 3757.99. The tech-heavy Nasdaq Composite declined 153.39, or 1.4%, to 11066.81. The Dow Jones Industrial Average was down 107.10, or 0.4%, to 30076.68. Stocks have been weighed down by persistently high inflation and central banks' moves to tighten financial conditions in response. The Fed raised rates by another 0.75 percentage point on Wednesday and signaled that there are more hikes to come. Fed Chairman Jerome Powell said in a press conference that there isn't a painless way to tame inflation. Airlines suffered. American Airlines, United Airlines, Delta Air Lines and Alaska Air each shed between 3% and 5%. The S&P 500's consumer-discretionary sector lost 2.2% as investors worried about how demand from shoppers might hold up during a recession. Rising interest rates and the potential economic fallout have made it difficult to feel comfortable investing in risk assets, from stocks to high-yield bonds, said Justin Gmelich, global head of markets at King Street, an asset manager. FedEx shares rose $1.29, or 0.8%, to $154.54 after the company said it will raise shipping rates and take steps to save more than $2 billion in its 2023 fiscal year. Last week, FedEx shares were pummeled after it warned of falling package volumes, a report that rippled through markets as another omen of recession.


On Friday, the stock markets in East Asia and Australia continued to suffer heavy losses. After initially only small losses, these widened considerably in the course of the day. In Sydney, the stock market fell by 2.3 per cent in late trading, as there was no trading on Thursday due to the day of mourning for the death of the Queen and investors were only now able to react to the latest interest rate hike in the USA. In Seoul, the Kospi loses 1.8 per cent, in Hong Kong and Shanghai the losses are 0.8 and 1.1 per cent respectively. Tokyo escapes with a black eye, as there is no trading there due to a public holiday.


U.S. Government bond yields continued to rise. The yield on the two-year Treasury note settled at 4.124%, up from 3.993% a day earlier. The 10-year yield rose to 3.705%, from 3.511% on Wednesday. Both set new highs dating back more than a decade. Short-term yields have been greater than long-term yields since early July, a pattern that has often preceded a recession.


UBS lowers the Knorr-Bremse target to EUR 82 (91) – Buy

UBS raises the Santander target to EUR 4.10 (3.85) – Buy

UBS raises the BBVA target to EUR 7.10 (6.60) – Buy

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