Key Takeaways
- Bernstein has significantly raised its target price for Rolls-Royce (RR) to 900 pence from 676 pence, signaling increased confidence in the aerospace and defense company's outlook.
- AMD (AMD) shares dropped 3.2% and Nvidia (NVDA) fell about 1.2%, reflecting recent market movements in the semiconductor sector.
- Switzerland's economy is largely expected to withstand the immediate impact of new U.S. tariffs, despite facing a significant 39% duty on its exports to the U.S.
- Italy's July CPI figures remained stable and in line with expectations, with EU Harmonised CPI showing a final monthly decrease of -1.0% and an annual increase of 1.7%.
- Swiss total sight deposits decreased slightly to CHF 465.9 billion as of August 8th, down from the previous CHF 468.5 billion.
Bernstein, a prominent research firm, has shown renewed optimism for Rolls-Royce Holdings Plc (RR), elevating its target price to 900 pence from the previous 676 pence. This substantial increase suggests a more bullish outlook on the aerospace and defense giant's future performance.
In the technology sector, major chipmakers experienced declines. Advanced Micro Devices (AMD) saw its shares drop by 3.2%, while Nvidia (NVDA) fell by approximately 1.2%. These movements come amidst broader market dynamics affecting the semiconductor industry, with AMD having seen recent volatility following its data center revenue reports.
The Swiss economy appears poised to navigate the recent "tariff surprise" from the U.S. According to a Bloomberg survey of economists, Switzerland's robust economy, characterized by low unemployment and inflation, is expected to largely absorb the shock of a 39% tariff imposed on its exports to the United States over the next year. While Swiss officials have expressed disappointment and are seeking negotiations, the initial economic impact is anticipated to be manageable, though potential job losses in key manufacturing industries remain a concern if the levies persist.
Meanwhile, China's LNG prices are anticipated to decline in August, according to statements from ENN Group (2688.HK). This projection is attributed to ample supplies of piped natural gas and subdued industrial demand within China, which has led to a retreat from costly spot LNG imports.
In European economic news, Italy's final Consumer Price Index (CPI) for July confirmed preliminary estimates. The EU Harmonised CPI showed a month-over-month decrease of -1.0% and a year-over-year increase of 1.7%. Similarly, the CPI NIC (excluding tobacco) recorded a monthly increase of 0.4% and an annual rise of 1.7%, with all figures aligning with prior expectations.
Finally, the latest data from the Swiss National Bank (SNB) indicates a slight moderation in Switzerland's total sight deposits. As of August 8th, total sight deposits stood at CHF 465.9 billion, a decrease from the previous CHF 468.5 billion. Domestic sight deposits also saw a minor reduction, moving to CHF 437.1 billion from CHF 439.5 billion.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.