Research Market strategy
By Swissquote Analysts
Published on 05.01.2023
Morning news

Meta Fined Over $400 Million in EU for Serving Ads Based on Online Activity

Topic of the day

A top European Union privacy regulator ruled that Meta Platforms Inc. can’t use its contracts with Facebook and Instagram users to justify sending them ads based on their online activity, delivering one of the bloc’s biggest blows yet to the digital-advertising industry. The ruling, announced Wednesday by Ireland’s Data Protection Commission, also imposed fines of 390 million euros, or $414 million, on Meta, saying that the company violated EU privacy laws by saying such ads are necessary to execute contracts with users. Meta, the parent of Instagram and Facebook, said it disagrees with the ruling and plans to appeal both it and the fines. Litigation could take years, but if the decisions are upheld, they could mean that Meta will have to allow users to opt out of ads that are based on how individual users interact with its own apps—something that could hurt its core business.

Swiss stocks

Swiss stocks turned in a fine performance on Wednesday, extending gains from the previous session, thanks to positive global clues. After opening modestly higher, the benchmark SMI moved up and stayed firm right till the end of the session, to finish with a gain of 161.63 points or 1.47% at 11,140.27, the day's high. Swiss Re ended stronger by about 4.6%. Geberit, ABB and Sika gained 3.3 to 3.75%. Givaudan, Richemont, UBS Group, Credit Suisse, Partners Group, Nestle, Logitech, Swiss Life Holding, Sonova and Lonza Group rallied 1.5 to 2.6%. In the Mid Price Index, AMS climbed 6.78%. Zur Rose gained 5.8%, while Adecco, Temenos Group, Schindler Ps, Schindler Holding, Flughafen Zurich, SIG Combibloc, Clariant, Ems Chemie Holding and Julius Baer gained 2.3 to 4%. Data released by Swiss Federal Statistical Office showed the annual inflation rate in Switzerland dropped to 2.8% year-on-year in December, from 3% in the prior two months. The 2.8% inflation figure is slightly lower tha the 2.9% forecast. The consumer price index in Switzerland eased to 0.2% in December 2022 over the previous month.

International markets


European stocks closed on a buoyant note on Wednesday as easing concerns about inflation triggered hectic buying at several counters from across various sectors. A measure of French inflation unexpectedly slowed in December and the euro area's final composite PMI saw a slight upward revision versus the preliminary estimate, helping underpin regional sentiment. Elsewhere, German import price inflation weakened more than expected to the lowest in nearly one-and-a half years in November, Destatis said. Investors looked ahead to the minutes from the Federal Reserve's December 13-14 policy meeting, for clues about the central bank's interest rate outlook. The pan European Stoxx 600 gained 1.38%, The U.K.'s FTSE gained 0.41%. Germany's DAX surged 2.18% and France's CAC 40 climbed 2.3%, while Switzerland's SMI rose 1.47%. Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Netherlands, Poland, Portugal, Spain and Sweden posted sharp to moderate gains. Greece and Iceland ended marginally higher, while Denmark, Norway, Russia and Turkiye closed weak. In the UK market, Ocado Group soared more than 9%. Fresnillo climbed 7.3%, while Burberry Group, Prudential, BT Group, B&M European Value Retail, Sainsbury (J), DCC, IAG, JD Sports Fashion and Smith (DS) rallied 4 to 5.6%. In the German market, Deutsche Bank, Puma, Adidas, Munich RE, Covestro, Fresenius Medical Care, HelloFresh, Merck, Zalando and BASF gained 3.7 to 5.6%.

United States

U.S. stocks rose Wednesday, as traders weighed fresh economic data that fanned fears of a looming recession. The S&P 500 rose 28.83 points, or 0.8%, to 3852.97 by the end of the trading day while the Dow Jones Industrial Average increased 133.40 points, or 0.4%, to 33269.77. The tech-focused Nasdaq Composite Index climbed 71.78 points, or 0.7%, to 10458.76. All three opened in the green before briefly turning negative in midmorning trading after manufacturing activity dropped to its lowest level since May 2020. The Labor Department also said Wednesday morning that job openings topped estimates in November, a sign that demand for labor remained strong in the final months of 2022. The U.S. auto industry is poised for its worst year in more than a decade, as supply-chain snarls and poorly stocked dealerships dented sales for many car companies in 2022. Among the American auto makers, General Motors Co. said Wednesday U.S. sales rose 2.5% to 2.74 million for 2022 as it was able to recover from factory shutdowns earlier in the year that were due to parts shortages. Salesforce Inc. is laying off 10% of its workforce and reducing its office space in certain markets, extending a brutal period for tech job cuts into the new year. Salesforce Co-Chief Executive Marc Benioff said that the cuts come as many of the company’s customers are taking a more cautious approach to spending, a trend that a growing number of software companies said they have been facing lately.


The stock markets in East Asia are up across the board in trading on Thursday; in Sydney the stock exchange has already ended trading with a plus of 0.1 per cent. In Tokyo it is up 0.4 per cent to 25,825 points. On the Japanese bond market, the ten-year yield is one tick lower than the previous day at 0.45 per cent.


U.S. Treasury yields ended Wednesday's session lower on Wall Street, despite the Federal Reserve warning investors not to doubt its commitment to keeping interest rates high. U.S. 10-year Treasury yields fell to 3.709% from 3.791% a day earlier.


CS raises Diageo target to GBP 45 (44) – Outperform
Deutsche Bank lowers Zur Rose target to CHF 22 (24) – Sell
Deutsche Bank raises ABN Amro target to EUR 18 (16) – Buy

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