Airbus said it would increase shareholder returns in the coming years, betting that robust demand for aircraft will continue to fuel growth. The European plane maker said Wednesday that it was lifting its dividend payout ratio to between 30% and 50% from a current range of 30% to 40%. The company said special dividends and share buybacks remained on the table to return extra cash to shareholders. The move shows a growing divide between Airbus and Boeing, which suspended dividend payments in March 2020. Airbus’s beleaguered rival has been mired in safety and production issues in recent years and is working to recover from the reputational and financial fallout. Airbus shares rose more than 3% following the announcement that came during the Paris Air Show. The company bagged several aircraft orders at the annual trade event, underscoring strong demand for planes as airlines continue to expand capacity.

The Swiss market was down again on Wednesday, spending the entire session under water and tracking most of the major European bourses to the downside. The SMI has now fallen lower in four straight sessions, slumping more than 360 points or 3 percent in that span. Amid escalating tensions between Iran and Israel, the Strait of Hormuz, a critical global oil route, has become a focal point of concern. Investors remain worried that disruption of oil flows through this narrow strait could hit global economy hard. For the day, the index dropped 47.59 points or 0.40 percent to finish at 11,959.47 after trading between 11,918.09 and 11,999.70. Among the actives, UBS Group stumbled 2.44 percent, while Swisscom jumped 1.17 percent, Roche Holding slumped 0.96 percent, Julius Bar Gruppe skidded 0.92 percent, Novartis dropped 0.63 percent, Zurich Insurance sank 0.50 percent, Swiss Life collected 0.30 percent, Swatch Group rose 0.26 percent and Adecco Group was unchanged.

Europe
European stocks were mixed on Wednesday, with Middle East tensions, regional inflation data and central bank decisions in focus. Germany's DAX was down 116.84 points or 0.50 percent to finish at 23,317.81, while London's FTSE rose 9.44 points or 0.11 percent to close at 8,843.47 and the CAC 40 in France sank 27.61 points or 0.36 percent to end at 7,656.12. In Germany, Daimler Truck Holding stumbled 2.49 percent, while Infineon Technologies retreated 2.10 percent, Siemens Energy slumped 0.93 percent, Volkswagen dropped 0.86 percent, Deutsche Telekom shed 0.75 percent, Deutsche Bank collected 0.75 percent, Deutsche Borse lost 0.37 percent and Deutsche Post gained 0.17 percent. In London, Ashtead tanked 1.93 percent, while British American Tobacco rallied 1.33 percent, St. James Place and Intermediate Capital Group both jumped 1.24 percent, Prudential and Spirax Group both sank 0.85 percent, Vodafone added 0.40 percent, Centrica lost 0.39 percent, Rightmove rose 0.10 percent and Rolls-Royce Holdings perked 0.04 percent. In France, Worldline plunged 4.18 percent, while Sanofi stumbled 2.40 percent, Societe Generale jumped 1.64 percent, BNP Paribas collected 0.79 percent, Vivendi shed 0.35 percent, Credit Agricole rose 0.19 percent and Carrefour dipped 0.12 percent. In economic news, U.K. consumer price inflation softened in May largely due to easing transportation cost, data from the Office for National Statistics revealed. The consumer price index registered an annual increase of 3.4 percent, slightly slower than the 3.5 percent rise seen in April. However, inflation was slightly above forecast of 3.3 percent. The annual inflation rate in Austria edged down to 3.0 percent in May 2025 from 3.1 percent in the previous month, matching preliminary estimates. Elsewhere, Sweden's central bank has cut its key policy rate to 2 percent and said there was a small chance of further easing later this year if economic weakness persists.

United States
After moving to the upside early in the session, stocks gave back ground over the course of the trading day on Wednesday to end the day roughly flat. While the Nasdaq inched up 25.18 points or 0.1 percent to 19,546.27, the S&P 500 edged down 1.85 points or less than a tenth of a percent to 5,980.87 and the Dow slipped 44.14 points or 0.1 percent to 42,171.66. The lackluster close on Wall Street came after the Federal Reserve announced its widely expected decision to leave interest rates unchanged. The Fed said it decided to maintain the target range for the federal funds rate at 4.25 to 4.50 percent in support of its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run. The central bank's decision came as it noted swings in net exports have affected data but said recent indicators suggest that economic activity has continued to expand at a solid pace. Despite changes to economic growth and inflation forecats, Fed officials still seem to expect to two interest rate cuts this year, lowering the rate to a range of 4.0 percent to 3.75 percent by the end of 2025. The early strength on Wall Street comes despite ongoing concerns about the ongoing conflict between Israel and Iran. Iran's supreme leader Ayatollah Ali Khamenei threatened the U.S. with 'irreparable damage' if the country engages in the clash after President Donald Trump demanded Iran's 'unconditional surrender' in a post on Truth Social on Tuesday. Microsoft is planning to lay off several thousand employees in the next few weeks, looking to thin out its ranks while continuing its costly push into artificial intelligence. The reduction of thousands of jobs will affect its sales department and other teams, people familiar with the matter said.

Asia
The possible escalation in the Middle East war weighed on Asian stock markets. According to a Bloomberg report, the US could intervene in the war between Israel and Iran in the next few days and attack the mullah state. After the heavy losses of the previous day, the HSI in Hong Kong falls by a further 2 per cent. On the Chinese mainland, the Shanghai Composite lost 0.9 per cent.

Bonds
In the U.S. bond market, treasuries closed little changed following the rebound seen in the previous session. Subsequently, the yield on the benchmark ten-tear note crept up by less than a basis point to 4.397 percent.

Analysis
UBS lowers Orior target to CHF 13 (15) – Sell
Bank of America raises Societe Generale target to EUR 58 (52) – Buy
HSBC raises Kering target to EUR 210 (180) – Hold