Shares in French music-streaming service Deezer fell in their first day of trading, a fresh sign of the difficult environment facing startups and loss-making companies. The Paris-based competitor to music-streaming services including Spotify Technology SA saw its shares fall by more than a quarter on Tuesday, the company’s first day on Paris’s stock exchange. The tumble, down more than 30% at one point, came after the company struck a SPAC deal in April valuing it at roughly $1.1 billion. Deezer’s downbeat debut is a sign that there are limits to the investor appetite for music-streaming services, even as such offerings have grown to become a major source of revenue for the music industry. In addition to Spotify, Deezer faces competition from Apple Music’s and Amazon.com Inc.’s similar services, which benefit from their larger scale and alternative sources of revenue. Shares in technology companies have been trading down this year. Rising inflation and fears of a recession have put particularly heavy pressure on startups—some of which have taken haircuts in recent fundraising.

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The Swiss stock market was unable to escape the recession fears dominating stock markets worldwide on Tuesday and closed weak. The SMI lost 1.6 per cent to 10,703 points. Among the 20 SMI stocks, there were 18 price losers and 2 price winners. 39.49 (Monday: 21.42) million shares were traded. In the European context, the SMI was one of the best performers and benefited from the fact that some less cyclical stocks are heavily weighted in the SMI, which were less affected by the concerns about the economy. Pharmaceutical stocks Roche (-1.1%) and Novartis (-0.9%) led the way, as did ophthalmology stock Alcon (-0.2%). In addition, Nestle fell by only 0.6 per cent. On the losing side, bank stocks found themselves well ahead. UBS lost 4.6, Credit Swiss 4.4 and Julius Baer 3.8 per cent. Insurers Zurich (-4.0 per cent) and Swiss Re (-4.3 per cent) also suffered from lower interest rates.

European stock markets closed sharply lower on Tuesday as investor concerns about the economy overshadowed hopes of a possible warming of trade relations between the United States and China. The Stoxx Europe 600 index fell 2.1% to 400.7 points. In Paris, the CAC 40 and SBF 120 lost 2.7% each. In Frankfurt, the DAX 40 ended down 2.9%, as did the FTSE 100 in London. J Sainsbury PLC said Tuesday that like-for-like sales declined in the first quarter of fiscal 2023, and added that its current commercial and retail finance director, Blathnaid Bergin, has been appointed chief financial officer. The British grocer’s like-for-like sales excluding fuel for the quarter ended June 25 were down 4%, it added, noting that its performance for the quarter as a whole was in line with views. CureVac is suing BioNTech over intellectual property rights linked to mRNA technology, putting the Covid-19 vaccine developed by Pfizer and BioNTech in the crosshairs. CureVac (ticker: CVAC) said Tuesday that it had filed a lawsuit in the German regional court in Düsseldorf against BioNTech (BNTX) and two of its subsidiaries. The company said it is seeking fair compensation for the infringement of intellectual property rights that aided in the manufacture and sale of Comirnaty - the ubiquitous Covid-19 vaccine developed by BioNTech and Pfizer (PFE).

Two of the three major U.S. stock indexes closed higher after the market staged a late-day rally, while oil prices fell on investor concerns that slowing economic growth could curb energy consumption. The S&P 500 rose 0.2%, or 6.06 points, to 3831.39 on Tuesday to start the trading week after the U.S. stock and bond markets closed for the Independence Day holiday. The Dow Jones Industrial Average lost 0.4%, or 129.44 points, to close at 30967.82. The tech-focused Nasdaq Composite Index shed earlier losses to gain 1.7%, or 194.39 points, to 11322.24. Equity prices declined for much of Tuesday morning before rallying back in afternoon trading. Investors this week are awaiting the Friday release of the June jobs report, which will shed insight on the trajectory of the U.S. economy. So far, the job market has shown little sign of faltering this year -- offering one encouraging sign for the economy -- even as other data in recent weeks have pointed to an economic slowdown. Investors could be disappointed this month when major companies begin reporting second-quarter results. Economists say removing Chinese tariffs isn't likely to have a dramatic impact on inflation. And any rollback may not mark a fundamental change in the U.S.-China relationship or the countries' economic outlooks, some investors said. S&P and Dow Jones Industrial Average fell as low as 2.2% and 2.4%, respectively. Shares of Ford Motor Co. fell 1.1%, or 12 cents, to $11.20 after the company reported a 27% decrease in sales in June compared with the same month last year. Tesla shares rose 2.5%, or $17.41, to $699.20. The electric-car maker said Saturday that its vehicle deliveries fell quarter over quarter for the first time in more than two years after the company had to temporarily shut down its largest factory, in Shanghai, because of local Covid-19 restrictions.

Negative signs dominate the stock markets in East Asia and Australia at midweek. Traders speak of renewed recession concerns. In Tokyo, the Nikkei 225 index is down 1.1 per cent. In Shanghai, the Composite index falls 1.3 per cent, while the Hang Seng index in Hong Kong is down 1.4 per cent. On the stock exchange in Seoul, South Korea, the Kospi is down 1.3 per cent. The Australian stock market holds up comparatively well, with the S&P-ASX-200 falling 0.4 per cent. Here, price gains in the banking sector prevented a more significant decline.

In the U.S. bond market, meanwhile, the yield on the benchmark 10-year U.S. Treasury note fell to 2.808%, from 2.901% last Friday.

JP Morgan lowers UBS target to CHF 20 (21) – Overweight

Deutsche Bank lowers Sartorius target to 518 (650) EUR – Buy

UBS lowers Traton target to 22 (30) EUR – Buy

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