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Research Market strategy
by Swissquote Analysts
Morning News

Thyssenkrupp Supervisory Board Approves New Strategy

Topic of the day

Thyssenkrupp AG (TKA.XE) said Tuesday that its supervisory board unanimously approved the executive board's new strategy for the company, which includes an IPO of its elevator business. The German conglomerate said both its executive and supervisory boards agreed on a timetable for the implementation of the fundamental realignment of the company. Thyssenkrupp will provide further details with its quarterly figures in August. Guido Kerkhoff, chief executive of Thyssenkrupp, said: "The new strategy focuses on the economic success of our businesses. With the IPO of the elevator business, we are strengthening our capital base so that we can press ahead with the further development of the individual companies within the group." "At the same time, we will manage our businesses as a flexible portfolio and consistently align our new organizational structure with it. Together with co-determination in the steel business, we will quickly begin talks on how to make steel sustainably successful," Mr. Kerkhoff said. The supervisory board said it is convinced that the executive board is on the right track with the new strategy. Earlier this month, Thyssenkrupp's shares soared after it abandoned plans to split the company in two.

Swiss stocks

After a shaky start to the week, the SMI rose 0.4 percent to 9,624 points Tuesday, as the US permitted some US companies to supply Huawei for 90 days despite banning the sale of US-made supplier products for Huawei. But subdued expectations of a quick US-China trade dispute settlement and fears of an escalation in the US-Iran conflict remained. Heavyweight Nestle slid 0.5 percent, while cyclical stocks ABB, Adecco and Lafargeholcim rose between 0.8 percent and 1.7 percent. Among second-tier cyclicals, Kühne & Nagel rose 1.9 percent, although analysts had replaced it in their portfolio with Sulzer, which rose 3.1 percent. Hearing aid maker Sonova surged 6.3 percent on 2018/19 financials. Apple supplier AMS recovered with tech stocks worldwide, gaining 3.9 percent after a double-digit loss Monday on fears China would retaliate with sanctions against Apple for the US sanctions on Huawei. Logitech was up 1.4 percent. Bank software provider Temenos rose 5.4 percent on new growth targets.

International markets

Europe

The Stoxx Europe 600 index finished up 2.04 points, or 0.54%, to 379.50, snapping a two trading day losing streak. The FTSE 100 closed positively as trade sentiment improved on news that the U.S. would grant a 90-day extension before implementing its ban on sales of goods or services to Huawei Technologies. The closed up 18.04 points, or 0.25%, to 7328.92. The French CAC, meanwhile, was up 26.87 points, or 0.50%, to 5385.46, while the German DAX index was up 102.18 points, or 0.85%, to 12143.47. British Prime Minister Theresa May laid out a fresh plan to get Parliament to back her Brexit divorce package, dangling the prospect of a second Brexit referendum and other concessions to entice opposition lawmakers to ratify the deal in her fourth time asking. "We are making a new offer to find common ground in Parliament," Mrs. May said in a speech on Tuesday. "That is now the only way to deliver Brexit." The plan is likely to be Mrs. May's final attempt to get a Brexit deal ratified.

United States

U.S. stocks rose intraday, buoyed by gains in the technology sector, after the White House said it would grant temporary exemptions to an export blacklist against Huawei Technologies. The Dow Jones Industrial Average gained 156 points, or 0.6%, to 25836. The S&P 500 added 0.9% and the Nasdaq Composite advanced 1.1%. Shares of chip makers and hardware manufacturers bounced higher, helping major indexes chip away at some of their losses from the start of the week. Analysts attributed the gains to U.S. officials' plans to give some suppliers and customers of Huawei a reprieve from trade penalties-something they said would help ease tensions between the U.S. and China as they attempt to resume trade talks. The move "gives both sides more time to cool down and consider whether they're going to take the step into the abyss," said John Vail, chief global strategist at Nikko Asset Management.

Asia

Asian stocks are mostly higher as yesterday's modest gains get build on thanks to bigger overnight advances in Europe and the U.S. Hong Kong indexes lead the gains, rising some 0.5% from 4-month lows notched Tuesday.

Bonds

U.S government-bond prices fell intraday after the White House said it would grant temporary exemptions to an export blacklist against Huawei Technologies, raising hopes of a thaw in trade tensions. The yield on the benchmark 10-year Treasury note rose to a recent 2.432%, according to Tradeweb, from 2.416% Monday.

Analysis

UBS rises the SAP target to 117 (112) EUR – Neutral
UBS rises the Linde target to 190 (185) EUR – Buy
IR lowers the Leoni target to 12,70 (17,50) EUR – Sell


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.

 
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