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Swiss Market Index Extends Rally; OC Oerlikon Shares Gain

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Swiss stocks extended their gains to a third day, with the Swiss Market Index up 1.49% on Wednesday's close, as investors assessed a fresh batch of corporate and economic updates.

Data from UBS & CFA Society Switzerland showed that the country's economic sentiment index plunged to -25 points in June from -11.1 points in May.

On the defense front, the Swiss Federal Council reduced the planned temporary increase in the standard rate for value-added tax to 0.5 percentage points from 0.8 percentage points. The revenue generated from the VAT increase will be earmarked for military defense spending for a period of 12 years instead of the previous 10.

The council also said it will resume payments to the US for the Patriot missile systems to advance the project with minimal delay and prevent jeopardizing other procurements from the US, including the F-35A fighter jet. Meanwhile, the Federal Department of Defence, Civil Protection and Sport will begin contract negotiations with manufacturers from France, Israel, and South Korea for a second long-range, ground-based air defense system.

In corporate news, AlphaValue/Baader Europe confirmed its buy rating on OC Oerlikon (OERL.SW), with a price target of 4.86 francs, as it raised its second-quarter organic sales growth forecast to 5.3% from 2.1% amid price increases on the back of material surcharges. The Swiss surface technologies and advanced materials company's shares gained 3.95% at closing.

"For the full year, we have only raised our Adj. EBITDA margin forecast to 17.7% from 17.2%, as we expect the opposite effect in H2 for inventory revaluation. However, this impact should be more limited, as the group is now reducing its inventory levels. We believe the company will benefit from this situation. H1 results should act as a catalyst," the research firm said in a note.

Eli Lilly (LLY.SW) completed its purchase of clinical-stage company Centessa Pharmaceuticals, which develops a new class of medicines to treat narcolepsy and other sleep-wake disorders.

On the geopolitical front, the US Senate approved a war powers resolution in a 50-48 vote seeking to curb President Donald Trump's ability to launch military action against Iran without congressional approval.

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Asia Markets

Update: US Equity Indexes Decline Amid Hard Sell-Off in Chipmakers

(Updates with index/price moves and analysts' comments from the first paragraph.)US equity indexes slumped as profit-taking in mega-cap semiconductor names pushed the Nasdaq Composite and the S&P 500 sharply lower on Tuesday.The tech-heavy Nasdaq sank 2.2% to 25,587.04, the S&P 500 dived 1.4% to 7,365.46, and the Dow Jones Industrial Average slipped less than 0.1% to 51,666.84 at the close. Technology, industrials, and materials were the standout decliners, while consumer staples, real estate, and health care topped the gainers.In a category of stocks with a market capitalization of over $200 billion, 18 out of the 20 worst-performing stocks were technology firms. Sandisk (SNDK), Micron Technology (MU), and Arm (ARM) were the steepest decliners, sinking by at least 10% each. Within technology, semiconductors bore the brunt of investors' apathy.The sharp selling is likely profit-taking after market exuberance pushed tech stocks to record highs this year, Javier Correonero, Morningstar senior equity analyst, said in a news report published on the company's website. "There's a lot of froth in the markets."Tech stocks may face spillover impact from the selloff in South Korea, though the slide appears to be a "pullback/breather" in a market that nearly doubled this year, Wedbush Securities said in a note."We view the KOSPI sell-off as a pullback/breather on a market up almost 100% this year and also believe [SK Hynix, an affiliate of SK Telecom (SK)] overtaking Samsung was a big symbolic move that caused some investors to worry about an 'overheated' memory chip trade," Wedbush analysts, including Dan Ives, said in the note.Offering a different viewpoint on market moves, the Wells Fargo Investment Institute said in a research note that stocks often weaken before elections, referring to the US midterm polls in November. "Markets typically respond to a clearer policy outlook, so long-term investors should stay focused on fundamentals and consider adding equity exposure during election-driven pullbacks."In geopolitical news, President Donald Trump told reporters outside the White House that International Atomic Energy Agency inspectors will be heading to Iran, according to a report from Al Jazeera. In response to a journalist who said that Tehran claims that there are no scheduled IAEA visits, Trump said: "They're wrong, they know they're wrong. They told us inside, and we have it down 100 percent. If they were right, I'd cancel the meetings right now."Separately, Iran's President Masoud Pezeshkian said no negotiations will take place on the country's ballistic missiles, Al Jazeera reported.Front-month global benchmark North Sea Brent retreated 1.2% to $76.95 per barrel, and the US West Texas Intermediate slid 1% to $73.13 per barrel, with both crude oil types off session lows.In economic news, the June flash reading of manufacturing conditions from S&P Global rose to a 49-month high of 55.7 from 55.1 in May, in contrast with an expected decrease to 54.6 in a survey compiled by Bloomberg.Most US Treasury yields fell, but were off session lows. The 10-year slipped one basis point to 4.5%, and the two-year rate declined 2.7 basis points to 4.2%.In precious metals, gold futures dropped 1.8% to $4,129.00, and silver futures slumped 6.1% to $62.01.

Dow JonesNasdaq CompositeS&P 500$ARM$MU$SNDK
Asia Markets

Exchange-Traded Funds Decline, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV edged lower. Actively traded Invesco QQQ Trust (QQQ) shed 2.7%.US equity indexes traded mixed as a rout in heavyweight semiconductor names hit the Nasdaq Composite and the S&P 500 in Tuesday's midday trading.EnergyIShares US Energy ETF and the State Street Energy Select Sector SPDR (XLE) each added about 0.7%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) fell 3.2%; iShares US Technology ETF (IYW) eased 3%, and iShares Expanded Tech Sector ETF (IGM) was down 2.7%.The State Street SPDR S&P Semiconductor (XSD) declined 5.8%, and iShares Semiconductor (SOXX) dipped 7%.FinancialThe State Street Financial Select Sector SPDR (XLF) added 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) climbed 1.1%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 1.2%.CommoditiesCrude oil fell 1.2%, and the United States Oil Fund (USO) slipped 1.5%. Natural gas dropped 3.2%, and the United States Natural Gas Fund (UNG) was down 2.7%.Gold on Comex eased 1.2%, and the State Street SPDR Gold Shares (GLD) fell 1.2%. Silver was down 5.3%, and iShares Silver Trust (SLV) shed 4.6%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) rose 1.6%. The Vanguard Consumer Staples ETF (VDC) added 1.7%, and iShares Dow Jones US Consumer Goods (IYK) was up 1.6%.The State Street Consumer Discretionary Select Sector SPDR (XLY) dipped 0.6%. VanEck Retail ETF (RTH) rose 1%, and the State Street SPDR S&P Retail (XRT) was up 0.7%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) rose 1.2%, iShares US Healthcare (IYH) added 1.2%, and Vanguard Health Care ETF (VHT) was up 1.2%. IShares Biotechnology ETF (IBB) gained 1.6%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) fell 1.2%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also lower.CryptocurrencyIn midday activity, bitcoin (BTC-USD) eased 3.2%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) fell 3.2%, ProShares Ether ETF (EETH) was down 4.5%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 2.9% lower.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH
Asia Markets

Update: US Equity Indexes Mixed as Mega-Cap Sell-Off Sends Nasdaq, S&P 500 Sliding

(Updates with index/price moves, macroeconomic data, and analysts' comments from the first paragraph.)US equity indexes traded mixed as a rout in heavyweight semiconductor names hit the Nasdaq Composite and the S&P 500 in Tuesday's midday trading.The Nasdaq Composite slumped 1.4% to 25,803.1, and the S&P 500 dropped 0.9% to 7,403.2 intraday. The Dow Jones Industrial Average rose 0.2% to 51,821.7.Technology and industrials were the standout decliners, while consumer staples and real estate topped the gainers intraday.In a category of stocks with a market capitalization of over $200 billion, 17 out of the bottom 20 stocks were technology firms. Sandisk (SNDK), Micron Technology (MU), and Qualcomm (QCOM) were the steepest decliners, sinking by at least 9% each intraday. Within technology, semiconductors bore the brunt of investors' apathy.Tech stocks may face spillover impact from the selloff in South Korea, though the slide appears to be a "pullback/breather" in a market that nearly doubled this year, Wedbush Securities said in a note. South Korea's Korea Composite Stock Price Index, which was up roughly 90% year-to-date, fell about 10% on Tuesday, the brokerage said in a note."We view the KOSPI sell-off as a pullback/breather on a market up almost 100% this year and also believe [SK Hynix, an affiliate of SK Telecom overtaking Samsung was a big symbolic move that caused some investors to worry about an 'overheated' memory chip trade," Wedbush analysts, including Dan Ives, said in the note.Offering a different viewpoint, the Wells Fargo Investment Institute said in a research note that stocks often weaken before elections, referring to the US midterm polls in November. However, history shows those declines have often been followed by strong rebounds and better returns in the year after midterm results are known."Markets typically respond to a clearer policy outlook, so long-term investors should stay focused on fundamentals and consider adding equity exposure during election-driven pullbacks," the WFII note said.In geopolitical news, the Strait of Hormuz will remain open "with no further naval blockade," and Iran has agreed to the "highest level nuclear inspections," Al Jazeera cited US President Donald Trump as saying. Tehran has no plans to allow international inspections of its nuclear facilities, the Middle East news agency cited Iran's Foreign Affairs Ministry spokesman Esmaeil Baghaei as saying.Front-month global benchmark North Sea Brent retreated 1.32% to $76.86 per barrel, and the US West Texas Intermediate slid 1.3% to $72.93 per barrel.In economic news, the June flash reading of manufacturing conditions from S&P Global rose to a 49-month high of 55.7 from 55.1 in May, in contrast with an expected decrease to 54.6 in a survey compiled by Bloomberg.Redbook US same-store sales surged 10% from a year earlier in the week ended June 20 after a 9.4% year-over-year increase in the previous week.Most US Treasury yields declined, with the 10-year down 2.8 basis points to 4.48%. The two-year rate dropped 4.7 basis points to 4.18%.In precious metals, gold futures dropped 1% to $4,159.10, and silver futures slumped 5.2% to $62.65.

Dow JonesNasdaq CompositeS&P 500$MU$QCOM$SNDK