Merck & Co. is in advanced talks to acquire Seagen Inc. and is aiming to agree on a purchase of the cancer biotech in the next few weeks, according to people familiar with the matter, in a deal that could be worth roughly $40 billion or more. The companies are discussing a price for Seagen above $200 a share and are seeking to seal a deal on or before the announcement of Merck’s quarterly earnings, set for July 28, the people said. There is still no guarantee the companies will reach agreement on a takeover deal. New Jersey-based Merck has a market value of around $235 billion. Acquiring Seagen would help broaden its lineup of cancer drugs, currently led by the blockbuster immunotherapy Keytruda, the company’s top-selling product with $17.2 billion in sales last year. It could also help offset the sales blow expected when Keytruda loses patent protection, which analysts expect at the end of this decade. Keytruda could approach 40% of Merck’s sales in 2027, Cowen & Co. analysts estimate.

The players on the Swiss stock exchange were in a buying mood again on Thursday and drove prices further upwards. The SMI gained 0.9 per cent to 10,941 points. Among the 20 SMI stocks, there were 19 price gainers and 1 loser. 32.97 (Wednesday: 35.25) million shares were traded. The day's SMI winner was Swiss Life with a gain of 3.8 percent to 468.80 francs. Berenberg lowered the price target for the share, but at 635 francs after 659 francs previously, it is far above the current price. Accordingly, the analysts continue to recommend the share as a buy. The 25 percent drop in Swiss Life's share price since the end of April gives the impression of serious problems, but this is not the case, they said. ABB (+3.2%) ranked second. The industrial goods company has reached an agreement with the Swedish ball bearing expert SKF to cooperate in the field of automation processes.

European equity indices ended higher on Thursday, supported by cheap buying and press reports of stimulus measures in China. The markets showed little reaction to Boris Johnson's resignation as leader of the British Conservative Party, a prelude to his stepping down as prime minister. The Stoxx Europe 600 index gained 1.9% to 415.01 points. In Paris, the CAC 40 closed up 1.6% and the SBF 120 gained 1.7%. In Frankfurt, the DAX 40 gained 2% and in London, the FTSE 100 gained 1.1%. Shell PLC said it expects strong second-quarter profit from higher fuel-refining margins that could add more than $1 billion to earnings, while forecasts for sustained high energy prices boosted the value of its oil and gas holdings. The London-based oil major said Thursday that it expects the outlook for energy prices will allow the company to reverse between $3.5 billion to $4.5 billion in impairments it took early in the pandemic, when sagging demand had a big impact on energy-price forecasts. Demand has since come roaring back amid a resurgence in travel and other activities curtailed by Covid-19. Persimmon PLC said Thursday that revenue for the first half fell on lower house completions, but it expects profit to beat expectations and its forward sales position rose. The U.K. house builder said that first-half revenue was 1.69 billion pounds ($2.02 billion) for the period compared with GBP1.84 billion a year prior.

U.S. stocks posted their fourth straight session of gains Thursday, lifted by shares of everything from banks to consumer-focused companies. Major indexes have mostly risen this week, despite investors getting some mixed economic data. A report Thursday showed the number of new applications for U.S. unemployment benefits rose to a six-month high last week, a sign that growth in the labor market is slowing down. Investors widely expect economic data to weaken as the Federal Reserve continues raising interest rates in an effort to rein in inflation. What will be key, analysts say, is how quickly or slowly the data worsen. Many are hoping that central bank policy will pull inflation back from multidecade highs without tipping the U.S. into recession. The S&P 500 rose 57.54 points, or 1.5%, to 3902.62, notching its longest winning streak since March. The tech-heavy Nasdaq Composite Index gained 259.49 points, or 2.3%, to 11621.35 and also ended Thursday with its longest winning streak since March. The Dow Jones Industrial Average climbed 346.87 points, or 1.1%, to 31384.55. Stocks rose broadly Thursday, with 10 of the S&P 500's 11 sectors ending in the green. GameStop jumped $17.69, or 15%, to $135.12 after the retailer on Wednesday declared a 4-for-1 stock split. Bed Bath & Beyond rose 97 cents, or 22%, to $5.44 after Interim Chief Executive Sue Gove disclosed the acquisition of 50,000 shares of the company's stock in a Securities and Exchange Commission filing. Shares of Seagen rose $2.82, or 1.6%, to $177.95 after The Wall Street Journal reported Merck & Co. is in advanced talks to buy the cancer biotech in a deal that could be worth roughly $40 billion or more.

Stock prices in East Asia and Australia are mostly up on Friday, after a strong rise on Wall Street the day before. In Tokyo, prices came back only briefly from their daily highs with the news that former Japanese Prime Minister Shinzo Abe was injured by gunshots during a speech. In Japan, the election for the upper house is coming up this weekend. The Nikkei 225 index is now back up 0.8 per cent. Sought after after the recent devaluation of the yen are shares of export-oriented companies such as those of the car supplier Denso (+4.2%).

In bond markets, the yield on the benchmark 10-year Treasury note rose to 3.007% from 2.911% on Wednesday, while the yield on the two-year note settled at 3.039% from 2.961%. When the latter exceeds the former, investors have what is called a yield curve inversion: a market signal that has often preceded recessions in the past.

Citi lowers Adidas target to EUR 235 (242) – Buy
CS lowers Amundi target to EUR 54 (52) – Neutral
UBS lowers Scout24 target to EUR 69 (76) – Buy

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