South Korean chipmaker SK Hynix has lowered the fundraising target for its planned U.S. stock market listing to about $28 billion following the recent decline in its stock price. The world’s second-largest manufacturer of memory chips announced in a regulatory filing with the South Korean stock exchange that it intends to raise 43.141 trillion South Korean won—equivalent to approximately $28 billion—by issuing American Depositary Receipts (ADRs) on the Nasdaq technology exchange. The transaction would still rank among the largest stock offerings ever, surpassed only by SpaceX’s record-breaking initial public offering last month, which raised $75 billion. SK Hynix plans to use the proceeds to finance the expansion of its production facilities in South Korea and the purchase of chip-manufacturing equipment, such as extreme ultraviolet scanners from ASML. SK Hynix aims to begin trading on July 10, with ten ADRs representing one common share.

The Switzerland stock market ended notably lower on Monday, after closing the previous two sessions on a firm note. Investors chose to take some profits as a lack of positive triggers rendered the mood cautious. A slight drop in the unemployment rate helped limit market's downside a bit. The benchmark SMI, which moved slightly above the flat line till about an hour before noon, dropped to a low of 14,235.13 in later afternoon trades before settling at 14,302.26, down 121.98 points or 0.85% from previous close. Roche shed about 2.6%. Kuehne + Nagel, Sandoz Group, VAT Group, Geberit and Novartis lost 2.2%-2.5%. Givaudan drifted lower by about 1.6%. Swisscom, Sika and Lindt & Spruengli closed down by 1.3%-1.5%. Nestle lost a little over 1%, while Richemont, Galderma Group, Schindler PS and ABB ended modestly lower. Julius Baer climbed nearly 2%. Sonova moved up 1.87%, while Swiss Life Holding and UBS Group gained 1.79% and 1.72%, respectively. Lonza Group, Logitech International, Swiss Re, Straumann Holding, Holcim and Zurich Insurance advanced 0.5%-1.1%. In economic news, Switzerland's unemployment rate decreased slightly in June after remaining stable in May, the State Secretariat for Economic Affairs, or SECO, said.

Europe
European stocks closed mostly weak on Monday as investors reacted to regional PMI data and some corporate news. Easing geopolitical concerns and hopes that major central banks, including the Federal Reserve, will hold interest rates for now aided sentiment and limited markets' downside. The pan European Stoxx 600 ended down 0.35%. The UK's FTSE 100 and France's CAC 40 shed 0.26% and 0.47%, respectively. Germany's DAX climbed 0.15%. Switzerland's SMI ended down 0.85%. Among other markets in Europe, Belgium, Denmark, Finland, Norway, Portugal, Russia, Spain and Sweden closed weak. Czech Republic, Greece, Iceland, Ireland and Poland ended higher, while Austria, Netherlands and Türkiye closed flat. In the UK market, Relx, St. James's Place, BAE Systems and LSEG gained 2%-2.6%. Prudential, IAG, Barclays, Standard Chartered, Investec, Burberry Group, Aviva Group, DCC, HSBC Holdings and Aberdeen Group moved up 1%-1.5%. Compass Group shed 3.49%. Associated British Foods, Coca-Cola HBC, Halma, Metlen Energy & Metals, Endeavour Mining, AstraZeneca, Fresnillo, Whitbread and Croda International lost 2%-3%. Tesco, GSK, Howden Joinery Group, Haleon, Centrica, Intercontinental Hotels Group, Imperial Brands, Smiths Group, Diageo, IMI, Unilever and Convatec Group also ended notably lower. Ocado Group declined sharply. The online grocery and technology group announced that Tim Steiner would continue to serve as chief executive until the start of the 2028 financial year. In the German market, Rheinmetall climbed more than 3.5%. Fresenius, Deutsche Boerse, Deutsche Bank, Siemens Energy, Deutsche Telekom, Commerzbank, Volkswagen and Scout24 gained 1%-2%. Bayer drifted lower by about 4%. Continental, Merck, Symrise, Qiagen and Beiersdorf lost 1%-2.2%. In the French market, Thales moved up 1.3%. The technology and defense firm has agreed to buy the Gorge family's 35.51% stake in high-technology industrial group Exail Technologies. Stellantis, STMicroelectronics and Airbus gained 1.6%-2%. AXA, Capgemini, BNP Paribas, Michelin, Publicis Groupe and Credit Agricole also closed higher. ArcelorMittal, Teleperformance, Edenred, Pernod Ricard, Engie, Accor, Sanofi, Air Liquide, Saint-Gobain, Carrefour, Danone, L'Oreal and Orange shed 1%-3%.

United States
U.S. stocks closed higher with the AI trade again pacing the advance as investors returned from the Independence Day holiday weekend in an upbeat mood. The Dow Jones Industrial Average rose 155.84 points, or 0.29%, to 53055.91. The S&P 500 rose 54.19 points, 0.72%, to 7537.43, while the Nasdaq Composite gained 288.49 points, or 1.12%, to 26121.16. Tech stocks led the way higher, with Intel and Micron among the gainers. The advance comes ahead of a series of tests for the AI trade this week: Samsung is expected to share a preliminary second-quarter earnings update Tuesday, and South Korean chipmaker SK Hynix's $29 billion U.S. stock-market listing--set to be one of the biggest share sales in history--is expected to begin trading Friday. SpaceX will join the Nasdaq-100 Tuesday after Nasdaq fast-tracked its inclusion, with mutual and exchange-traded funds collectively tracking some $800 billion in assets expected to buy shares of the rocket company after Monday's close. SpaceX shares slipped about 1% Monday ahead of the event. Solstice Advanced Materials slid more than 15% after the specialty materials company, recently spun out of Honeywell, said it would buy chemicals maker Element Solutions for more than $12 billion in cash and stock.

Asia
Heavy losses in Seoul are dominating trading on the stock markets in East Asia and Australia on Tuesday. The Kospi, which has been extremely volatile at times in recent weeks, has plummeted by 7.7 per cent. The index is considered to be heavily weighted towards technology stocks and is once again suffering from profit-taking in the technology sector.

Bonds
Yields on U.S. Treasury bonds rose. The 10-year yield increased 0.002 percentage point to 4.479%.

Analysis
Bank of America raises its Ferrari target to EUR 400 (350) – Buy
Bank of America raises its Amundi target to EUR 97 (92) – Buy
Bank of America raises its IAG target to 570 (500) GBp – Buy

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