FedEx posted its third-straight drop in quarterly revenue as the delivery giant adapts to weaker demand after a pandemic-fueled boom in business. The company is in the early stages of combining its Express and Ground delivery networks into a single business to help cut costs. It has trimmed flight hours and parked aircraft. It also has sought to charge higher shipping rates to offset a decline in the number of packages shipped. FedEx executives aren't expecting a strong turnaround in business soon. Inflation, higher interest rates, and a slowdown in global trade are likely to temper parcel volumes and revenue growth, Chief Executive Raj Subramaniam told analysts on a conference call. With the pandemic in the rearview mirror, consumers have been spending more on services rather than on goods. But Subramaniam said some of that spending might return to e-commerce over the next year. Shares were down more than 3% in after-hours trading Tuesday. Through Tuesday's close, the stock is up 31% this year. The S&P 500 has gained 15% over the same period.

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The Swiss stock market ended Tuesday's trading session with markdowns. Investors are increasingly looking ahead to the interest rate decision of the Swiss National Bank (SNB) on Thursday. The anticipation is that the SNB will tighten its monetary policy again. Economists expect a hike of 25 basis points to 1.75 per cent. The SMI lost 0.8 per cent to 11,216 points. Among the 20 SMI stocks, there were 19 price losers and 1 price gainer. 20.86 (previously: 14.12) million shares were traded. Sika closed 3.7 per cent down in the wake of the massive profit warning by German specialty chemicals group Lanxess. Lonza (-3.2%) and Geberit (-2.8%) also recorded marked declines. Pharmaceutical giants, which are considered a rather defensive investment, held up comparatively well in the weak market environment. The shares of Novartis and Roche each fell slightly by 0.2 per cent. Meanwhile, the shares of the third heavyweight, Nestle, lost 0.6 per cent. The UBS share, which had posted significant gains the previous day, now fell by 2.4 per cent. According to media reports, the big bank is threatened with hundreds of millions of dollars in fines due to Credit Suisse's misconduct in connection to Archegos Capital.

The European stock markets lost ground on Tuesday as investors worried about the weakness of the economic recovery in China and awaited further indications from Federal Reserve (Fed) Chairman Jerome Powell on Wednesday. The Stoxx Europe 600 index fell by 0.6% to 459.3 points. In Paris, the CAC 40 and SBF 120 lost 0.3% each. The DAX 40 in Frankfurt shed 0.6%, while the FTSE 100 in London was down 0.3%. The Board of Directors of Renault (-3.8%) appointed Luca de Meo as CEO of Ampere, the carmaker's future subsidiary dedicated to electric vehicles and software. Carmaker Stellantis (-2.3%) and Taiwanese electronics specialist Foxconn Technology Group announced the creation of a 50/50 joint venture, SiliconAuto, to produce semiconductors for the new generation of vehicle platforms. Renewable energy producer Neoen (+4.3%) has raised its gross operating profit (Ebitda) target for 2025, due in particular to the award of a new storage contract in Australia. Kepler Cheuvreux upgraded its recommendation for Valneva (+12.3%) from "hold" to "buy", while lifting its target price from €7.50 to €9. The financial intermediary is confident in the biotech company's ability to achieve its financial targets for 2023. Sanofi (+3.7%) has won an arbitration initiated by German biopharmaceutical laboratory Boehringer Ingelheim (BI) relating to litigation concerning Zantac, a heartburn treatment withdrawn from the US market in 2020.

U.S. stocks dipped on Tuesday to kick off a short week of trading, stalling a rally that has seen indexes climb to their highest levels of the year. The S&P 500 fell 0.5 %. The Dow Jones Industrial Average shed more than 200 points, down 0.7%. The Nasdaq Composite edged 0.2% lower. In economic data, U.S. housing starts for May came in higher than expected, driven by both single-family and multifamily projects. Shares of home builders rose, with PulteGroup adding 1.9% and D.R. Horton gaining 1.6%. U.S.-listed shares of Chinese companies slipped. JD.com and PDD each fell roughly 7%. Alibaba declined 4.5% after the e-commerce company said it was replacing its chief executive officer. Paypal shares added 3.7 per cent. The payment service provider intends to pass on the anticipated proceeds from a deal with KKR to its shareholders. Intel has cleared the way for the construction of the announced plant in Magdeburg. As the US chip company communicated, it has signed a revised letter of intent with the federal government. The federal government would now provide 9.9 billion euros in state subsidies instead of the 6.9 billion euros originally planned. However, the share could not escape the weak market environment and shed 3.8 per cent. Tesla's share rose by 5.3 per cent. After Ford (-1.4 per cent) and GM (-1.7 per cent), electric car manufacturer Rivian has now also agreed to take over Tesla's charging plugs and technology. As a result, Rivian's shares gained 5.5 per cent.

Asian stocks were mixed on Wednesday. Before the holiday break for the Dragon Boat Festival on Thursday, the Shanghai Composite was down 0.4 per cent. Hong Kong once again dropped, this time by 1.9 per cent. Technology stocks such as Bilibili (-4.1 per cent), ZTE (3.4 per cent) and Alibaba (3.1 per cent) lead the list of losers. Japan's Nikkei-225 gains 0.4 per cent, spurred by a weakening yen during trading. The Kospi in South Korea shed 0.7 per cent. The share price of cinema chain CJ CGV slumps 14 per cent after plans for a capital increase.

Long-dated U.S. government debt yields slipped on Tuesday, pushing the 30-year rate to its lowest level in about five weeks, as traders geared up for a big week of commentary by Federal Reserve policy makers. The 10-year Treasury note yield fell by 5 basis points to 3.721%. The 2-year Treasury note yield eased by 2 basis points to 4.696%.

Target price Interroll: UBS downgrades to 2425 (2590) CHF - Sell

Jefferies upgrades Barclays target to 320 (300) GBp - Buy

SIG Group target price: UBS lifts to CHF 28 (26.50) - Buy

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