French media giant Vivendi said on Tuesday that it may sell an additional 10% of Universal Music - the label behind acts including Lady Gaga, Justin Bieber, Taylor Swift, and Kendrick Lamar - ahead of floating the group by the end of September 2021. Vivendi stock climbed 1.6% higher in Paris, after the company said it was "analyzing the opportunity of selling 10% of [Universal Music Group] shares to an American investor or initiating a public offering of at least 5% and up to 10% of UMG shares."
A consortium including Chinese technology giant Tencent already owns 20% of Universal Music after the sale of two 10% stakes, while Vivendi retains 80% ownership. The French group confirmed plans last week to list Universal Music in Amsterdam this fall, in a move that would distribute 60% of its share capital to current investors. As the music industry enjoys strong revenue growth from streaming services, Vivendi is set to profit from a listing, and it values Universal Music at EUR33 billion ($40 billion).

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The Swiss stock market ended Tuesday's trading slightly up. The SMI gained 0.1 per cent to 11,142 points. Among the 20 SMI stocks, there were 10 price losers and 9 price gainers, with ABB closing unchanged. 29.94 (previously: 32.28) million shares were traded. Cyclical stocks were more in demand. The SMI was led by the two luxury stocks Richemont (+1.3%) and Swatch (+1.2%). The share of the asset manager Partners Group advanced by 0.9 per cent. UBS improved moderately by 0.4 per cent. Rockefeller Capital Management hired a five-strong team of advisers in Boston who previously managed $1.9 billion at UBS. Credit Suisse slipped 0.1 per cent. After the debacle surrounding the collapse of the US hedge fund Archegos Capital, the bank apparently lost numerous top managers. Defensive stocks, meanwhile, tended to lose out. The share of the index heavyweight Nestle fell by 0.2 per cent. Novartis was also not in demand. The share lost 0.5 per cent and, together with Zurich Insurance (-0.5 per cent), brought up the rear. Meanwhile, the shares of competitor Roche went up by 0.6 per cent. Among the second-line stocks, the share of hearing aid manufacturer Sonova jumped 11.5 per cent after the presentation of figures for the 2020/21 financial half-year. An unexpectedly strong increase in the margin ensured a jump in profits, and good growth was achieved in all three business areas, it was said in trading. Schindler received a major order for 129 lifts from Egypt. The share price rose by 1.6 per cent.

The pan-European Stoxx 600 rose 0.4%, nearing the record high hit last week. In London, the FTSE climbed 0.4%, while Paris' CAC 40 was 0.3% higher and the Frankfurt DAX ticked up 0.4%. Stocks continue to rebound from declines last week driven by U.S. inflation fears, with analysts pointing to a return by investors to tech stocks, which were particularly battered in the selloff. Shares in Vodafone sunk 6.5%, after the telecommunications giant missed analyst expectations for full-year earnings, despite returning to profit to the tune of EUR536 million in the 12 months to the end of March, following a EUR455 million loss in the year prior. Imperial Brands stock rose 1.5%, after the tobacco group reported a solid first half of its fiscal year and said it was on track to deliver its full-year targets. Revenue rose 6% to GBP15.5 billion in the six months to the end of March, driven by strong growth in next-generation products like vaping - which have previously faced headwinds. Shares in Stellantis, the world's fourth-largest car maker, formed out of the merger between Fiat Chrysler and PSA Group earlier this year, rose 1.5%. Later on Tuesday, the group and Foxconn - the assembler of Apple's iPhone - are set to announce a new partnership. Trading in Siemens Gamesa stock was halted by Spanish regulators, after local newspaper Expansión reported that Siemens Energy - which owns a 67% stake in the wind turbine manufacturer - has hired investment banks to increase its ownership. Shares in Siemens Energy, the energy tech spinoff of German industrial giant Siemens, rose 2.5%. Siemens stock fell 1%.

U.S. stocks slipped Tuesday, with investors retreating from shares of companies closely tied to the economy. Shares of banks, industrial firms, energy companies and raw-materials producers were among the biggest decliners in the S&P 500, with all four sectors falling more than 1% in a spate of selling that accelerated into the market close. The Dow Jones Industrial Average fell 267.13 points, or 0.8%, to 34060.66. The S&P 500 slid 35.46 points, or 0.9%, to 4127.83. The Nasdaq Composite declined 75.41 points, or 0.6%, to 13303.64. Stocks have been choppy in recent trading sessions as concerns about a rise in inflation weighed on sentiment. Among individual stocks, AT&T dropped $1.82, or 5.8%, to $29.55, extending declines following its deal with Discovery to merge their media assets into a new, publicly traded business. The S&P 500’s communications services sector fell 1.2% Macy’s fell about 1 cent, or 0.4%, to $19.09, after reporting first-quarter earnings that beat expectations. Walmart advanced $3.02, or 2.2%, to $141.91, after the retailer lifted its guidance for the year. Home Depot fell $3.26, or 1%, to $316.75, even after surpassing earnings expectations.

The stock markets in East Asia follow the negative lead of Wall Street on Wednesday. In Tokyo, the Nikkei index loses after the strong increase on Tuesday with a minus of 1.4 percent to 28,023 points a large part of the gains again. In Shanghai, where it had gone only moderately up the previous day, it is now also only moderately down. There is no trading on the occasion of the holiday "Buddha's Birthday" in Seoul and Hong Kong.

Long-dated U.S. Treasury rates edged higher Tuesday, with appetite for bonds cooling even amid a round of weaker-than-expected housing data, which undercut the positive tone in equities. The yield on the 10-year Treasury note rose to 1.644% from 1.639% Monday.

Jefferies increases Geberit target to CHF 500 (404) - Underperf.
Berenberg raises Wienerberger target to EUR 38 (36) - Buy
Jefferies lifts Barclays target to 300 (296) p - Buy

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