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By Swissquote Analysts
Published on 31.05.2022
Morning news

Shell, Seven Group Sign Off on Crux Gas Field Development

Topic of the day

Shell PLC and Australia's Seven Group Holdings Ltd. have approved the development of the Crux natural-gas field off the coast of western Australia, Shell said on Monday. The oil major expects gas from Crux to be in demand as traditionally coal-hungry Asian utilities diversify their energy mix and customers globally wean themselves off Russian energy resources following Moscow's invasion of Ukraine. The joint venture will start construction on the project this year and expects to be producing gas in 2027, Shell said. An export pipeline will be connected to the existing Prelude floating liquefied natural gas facility roughly 100 miles southwest of the field. Crux will have the capacity to supply Prelude with up to 550 million standard cubic feet of gas a day. The development is expected to cost about $2.5 billion, commodities consultancy Wood Mackenzie revealed. Supplies from the field will feed rising Asian gas demand, supporting coal-to-gas switching, but will come to market later this decade at a time when global supplies are likely to be rising sharply because of other developments in places including Qatar, the U.S. and Canada.

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Swiss stocks

On Monday, the SMI gained 0.8 per cent to 11,736 points. Among the 20 SMI stocks, there were 16 price gainers and 4 price losers. 27.86 (previously: 38.59) million shares were traded. Richemont (+2.9%) was again the day's winner. The share thus continued the recovery rally which began during the previous week after the price slide in reaction to disappointing business figures and has now recuperated the strong losses. Other cyclically sensitive stocks were also on the investors' buy lists. Lonza rose by 2.1 per cent and Giveaudan by 2.4 per cent. Logitech advanced by 2.0 per cent. Banking stocks were also in demand: UBS gained 1.7 per cent and Credit Suisse 1.8 per cent. Meanwhile, the more defensive index heavyweights lagged behind. Nestle closed 0.3 per cent higher, Roche and Novartis also rose by 0.3 per cent each. Partners Group (-0.6 per cent) was among the laggards. However, the minus was only of an optical nature, as the share traded ex-dividend (CHF 33). Zur Rose advanced by 4.9 per cent reflecting hopes for positive news on the postponed e-prescription in Germany. Shares in Sanofi fell 1.9 per cent against the trend. A delay of a possible approval of Cialis in the USA by the FDA delayed hopes, that Cialis will be available on the OTC market. Analysts expect a strong sales boost from simplified availability.

International markets


European stocks were higher Monday, mirroring gains in Asia, with sentiment buoyed by the Shanghai government's plan to loosen Covid-19 restrictions on June 1 as daily case counts decline. However, trading volumes were low as Wall Street was closed for a public holiday. The Stoxx Europe 600 index increased by 0.6% to 446.6 points. In Paris, the CAC 40 and the SBF 120 advanced by 0.7% each. In Frankfurt, the DAX 40 climbed 0.8%, while in London the FTSE 100 gained 0.2%. Investors also took note of inflation figures in Germany, which reached its highest level since 1974 in May, according to the first estimate published on Monday by Destatis, the federal statistics office. The consumer price index for the eurozone as a whole will be published on Tuesday. Luxury goods stocks reacted favourably to the easing of anti-Covid measures in China, a crucial market for their business. Interparfums gained 5.1%, Hermès 3.9%, Kering 3.3%, and LVMH 2.5%. In Milan, Salvatore Moncler rose by 4.2%, while in Zurich, Richemont climbed 2.9%. In contrast, liquefied natural gas transport specialist Gaztransport & Technigaz (GTT) fell 10.4%. Pharmaceutical stocks also suffered "slight profit-taking with Sanofi losing 1.9% and Ipsen 0.5%. Italian telecoms operator Telecom Italia (+3.1% in Milan) announced the signing of an agreement with public investment company Cassa Depositi e Prestiti (CDP) to integrate its network with that of its competitor Open Fiber. German industrial conglomerate Siemens (+2.4% in Frankfurt) won the biggest order in its history with a contract for the Egyptian high-speed rail network worth 8.1 billion euros.

United States

U.S. markets were closed on Monday for the Memorial Day holiday.


In Asia, major indexes broadly closed with gains. Shanghai is up 0.8 per cent, Hong Kong 0.4 per cent and Seoul 0.3 per cent. In Tokyo, the Nikkei index moves sideways and closes at 27,357 points. Oil prices are on the rise after the EU finally decided on an oil embargo against Russia Monday night, which will affect a good two-thirds of oil deliveries to the Eurozone by the end of the year. The agreement relates to imports by ship. Oil deliveries by pipeline will continue to be allowed for the time being. US WTI oil increased by 2.7 per cent and Brent oil by 0.9 per cent to 122.88 dollars per barrel, after prices had already climbed the previous evening. In Asia, too, oil stocks are on the rise, with Inpex up 6 per cent in Tokyo and CNOOC up 1.8 per cent in Hong Kong. Dongfeng Automobile shares are up 10 per cent in Shanghai after trading resumed. Dongfeng Motor Group (+3.0 per cent in Hong Kong) has agreed to acquire 29.8 per cent of the company.


Eurozone government bonds fall sharply, with yields soaring, after German state inflation data show upside risks to the national data. The yield on the 10-year German Bund was 1.056%, up from 0.964% late Friday. US bond markets were closed on Monday due to a US holiday. The yield on the 10-year US Treasury bond closed at 2.745% on Friday.


Deutsche Bank lowers Barclays target to 210 (230) p - Hold

H&A reduces Aroundtown goal to EUR 7.30 (8.40) - Buy

Deutsche Bank cuts Patrizia target to EUR 25 (30) - Buy

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