Quantinuum, Honeywell’s quantum computing subsidiary, finalized the terms of its initial public offering on Tuesday. Under the terms, nearly 21.1 million shares are to be sold at a price range of $45 to $50 per share. At the midpoint of the target range, Quantinuum would generate net proceeds of $941.7 million. This amount could rise to approximately $1.09 billion if the over-allotment option is exercised. With 253.9 million shares outstanding following the IPO, the company’s valuation could reach up to $12.7 billion. This would make Quantinuum the largest company to go public so far this year. Honeywell founded Quantinuum in 2021 by merging its own quantum division with Cambridge Quantum and holds a majority stake in the company. Honeywell shares climbed 1.7 percent on Tuesday.

The Swiss stock market closed slightly higher on Tuesday following the long weekend. The SMI rose 0.2 percent to 13,526 points. The defensive index heavyweights performed mixed. While Nestlé shares rose 0.8 percent, Roche (-1.0%) and Novartis (-0.9%) saw declines. Overall, corporate news was scarce. Analyst comments, in particular, drove market movement. Julius Bär shares rebounded by 3.0 percent after plunging nearly 7 percent on Friday following the release of its earnings report. Additionally, Bank of America analysts upgraded the stock to “Buy” from “Neutral.” Zurich Insurance shares edged up 0.1 percent to 568.40 francs. Berenberg raised its price target to 711 francs from 656 francs and confirmed its buy recommendation. Aryzta shares surged 9.2 percent. Berenberg upgraded the stock to “Buy” from “Hold.”

Europe
European stock markets resumed their downward trend on Tuesday amid renewed tensions in the Middle East following U.S. strikes against several Iranian targets in the Strait of Hormuz. The Stoxx Europe 600 index gave up 0.6%, closing at 628 points. In Paris, the CAC 40 and the SBF 120 each lost 1%. In Frankfurt, the DAX 40 fell 0.8%, while the FTSE 100 edged down 0.2% in London. STMICROELECTRONICS (+3.1% to 59.84 euros): Oddo BHF raised its price target from 58 euros to 70 euros and confirmed its “outperform” rating on the semiconductor manufacturer’s stock. CARMILA (+2.5% to €16.42): On Tuesday, Jefferies upgraded its recommendation on the commercial real estate company’s stock from “hold” to “buy” and raised its price target from €18.50 to €20. STELLANTIS (+1.1%): The car manufacturer will invest more than one billion euros in its Mulhouse plant, French President Emmanuel Macron announced during a press conference focused on France’s electrification efforts. BP (-4% in London): The British oil major announced that its chairman, Albert Manifold, would step down effective immediately, after issues related to governance, oversight, and conduct were brought to the attention of the board of directors.

United States
Wall Street closed mixed on Tuesday. The Dow Jones Industrial Average shed 0.2 percent to 50,462 points. The S&P 500, on the other hand, gained 0.6 percent, while the Nasdaq rose by as much as 1.8 percent, propelled by a rally in chip and memory stocks. The Tuesday move is being led by Micron, which soared about 20% and traded above a $1 trillion market capitalization for the first time. The tech stock is on pace to surpass Walmart as the 11th largest U.S. company. Brent crude futures rose, while U.S. benchmark futures slipped 2.8% to $93.89 a a barrel. On the corporate front, Salesforce and Costco are among those due to report results in the final stretch of a strong earnings season. S&P 500 companies have so far reported a more than 28% jump in first-quarter profits, the highest growth rate since the final quarter of 2021. Dell Technologies rose 3.4 percent after gaining 17 percent on Friday. Analysts expect the computer manufacturer to beat expectations when it reports its earnings on Thursday. Shares of rocket and satellite companies were also in high demand. Speculation was fueled by the news that Elon Musk’s space and AI company SpaceX had filed documents with the Securities and Exchange Commission for its planned initial public offering. There is talk of a company valuation between $1.5 trillion and $2 trillion. Redwire surged 25.9 percent. Firefly Aerospace rose 18.8 percent. Pharmaceutical giant Eli Lilly has agreed to acquire three vaccine developers in a deal worth nearly $4 billion. The stock added 0.2 percent.

Asia
Asian stock markets are trading mostly higher on Wednesday. The Kospi in Seoul, South Korea, has surged 3.2 percent, bringing its year-to-date gain to 97 percent—meaning it has practically doubled. In Tokyo, the broad Topix index is down 0.4 percent from its recent record high, while the narrower, technology-heavy Nikkei 225 index is up slightly. In Hong Kong and Shanghai, the leading indices each lost around 1 percent. Amid the AI-driven rally fuelled by speculation of continued massive investment in chips, SK Hynix surged 13.1 percent in Seoul. The stock has jumped more than 256 percent since the start of the year. Samsung Electronics also rallied 6.2 percent, bringing its year-to-date performance to over 160 percent.

Bonds
Long-dated U.S. government debt yields slipped on Tuesday. The 10-year Treasury note yield dropped 8 basis points to 4.49%. Recent pressure on oil prices have sent U.S. Treasury yields lower, though that hasn’t shifted interest-rate expectations, with CME data showing investors see a nearly 60% chance of a hike by the end of this year.

Analysis
Berenberg upgrades Aryzta to Buy (from Hold) – Target: CHF 75 (65)
Vontobel upgrades Ypsomed to CHF 410 (400) – Buy
Berenberg lifts Swiss Life to CHF 1,014 (979) – Buy

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