STOCK MARKET REPORT by GRIMALDI & PARTNERS
MONTH REVIEW - JUNE 2021
The international stock markets ended June unevenly (partly slight losses, partly slight gains).
Hope for a strong economic recovery.
MAIN STRESS FACTORS:
Concerns about the Corona delta variant and the dangers of inflation.
Worries about an earlier than expected US interest rate hike.
Rising commodity prices have fueled concerns that inflation could bring growth to a standstill in the world's largest economy and undo the recent record rally on the stock markets.
Particularly noticeable at TITLE LEVEL:
ABB prepares e-mobility business to go public
The Swiss electrical engineering group ABB is pressing ahead with preparations for the IPO of its business with charging technology for electric cars. In the best case scenario, the division could be listed on the Swiss stock exchange in the first half of 2022.
Before that, the business that produces fast charging stations for cars and buses must be spun off from the group. The fast-growing unit, benefiting from the electric vehicle boom, could be worth around $ 3 billion. ABB is advised by Lilja & Co. The banks Morgan Stanley and UBS should be entrusted with the organization of the transaction.
LONZA completes sale of special ingredients business
Lonza has completed the sale of its chemicals business to two financial investors, Bain Captial and Cinven. For the separation from its roots, the pharmaceutical supplier receives 4.2 billion francs.
The Lonza Special Ingredients (LSI) sales process was announced about a year ago. Then everything happened quickly. The two interested parties crystallized in January and the decision was made at the beginning of February. Since the announcement of the intention to sell, Lonza has made significant progress in consolidating the new structure. Now the focus on long-term growth can be increased again.
MONTH OUTLOOK - JULY 2021
It is positive that US long-term interest rates have fallen below the 1.50% mark.
However, worries about an excessively strong rise in inflation, which could put pressure on the US Federal Reserve with its loose interest rate policy, slowed the stock exchanges somewhat in the past month.
In view of the rising economic expectations and the booming US economy, fears of inflation and interest rates should therefore continue to occupy the stock exchanges in the coming months.
We expect the positive trend to continue in July, albeit at a moderate pace.
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