SpaceX will begin trading shortly, at the start of the session today on Nasdaq. The deal was executed at speed, with the shares priced at $135, giving the company an initial valuation of $1.77 trillion and raising $75 billion. No company has ever reached such levels at the time of its IPO, either by valuation or by the amount of capital raised. The valuation could have been higher, as rumours a few weeks ago had pointed to $2 trillion. But leaving something on the table increases the chances of an even bigger wow factor once the trading frenzy begins.

SpaceX derivatives platforms suggest the shares could trade more than 30% above their offer price, which would immediately make the company the world's sixth-largest listed business by market capitalisation, behind Amazon but ahead of Broadcom. That is hardly surprising: the market is buying the space race and the Elon Musk brand, not the economics of space exploration, which remain far from proven.

However lofty the story may sound, the grand narrative of humanity's conquest of space is about to receive two far more earthly tailwinds as it writes its first chapter on the stock market. After being roughed up in recent days, semiconductor stocks bounced sharply yesterday. The US semiconductor index jumped 8%, clawing back part of the 12.5% loss built up over the previous sessions. The Nasdaq 100 rose 3.3%, reversing the declines of the two previous trading days. The rebound was helped by comments from Donald Trump during the session. The US president again floated the prospect of an imminent peace agreement with Iran, but this time the market took him seriously. Tehran's response was muted, though there is talk that an agreement could be signed in Europe over the weekend by Vice-President JD Vance. That would make for useful optics ahead of the G7 summit opening in Evian on Monday.

Two signals suggest investors believe that, this time, the reopening of the Strait of Hormuz is moving in the right direction. The first is oil, with Brent falling below $90 a barrel. The second is bonds, which rallied on the prospect of reduced inflationary pressure. Traders have also softened their expectations: they no longer mostly expect the Fed to raise rates by year-end.

Beyond SpaceX, which is likely to dominate the conversation, the market will have plenty to say about Adobe's latest results, released after the close yesterday. The group raised its guidance but did not entirely convince investors that it is immune to AI disruption. Even so, the update was broadly reassuring. The main macroeconomic release will be the University of Michigan's US consumer sentiment index this afternoon.

In Asia-Pacific, the week is ending better than expected thanks to the Nasdaq's surge. Gains range from 0.9% in India to 4.7% in South Korea, with Australia up 1.8% and Japan up 3.0%. Europe is expected to open sharply higher.

Today's economic highlights:

On today's agenda: in the United Kingdom, the 3-month average GDP, monthly industrial production, monthly manufacturing production, non-EU goods trade balance, monthly GDP, and goods trade balance; In the United States, the preliminary Michigan consumer sentiment index. See the full calendar here.

  • GBP / USD: US$1.34
  • Gold: US$4,185.11
  • Crude Oil (BRENT): US$88.46
  • United States 10 years: 4.47%
  • BITCOIN: US$63,221.7

In corporate news:

  • HSBC to redeem £1 billion of 2027 senior bonds on July 24.
  • Wizz Air warns UK tax hikes may force route cuts.
  • Charterhouse Capital receives Australian regulatory approval for its acquisition of Animalcare Group.
  • The DGA has awarded MBDA (Airbus, Leonardo, BAE Systems) a contract to develop a hypersonic nuclear missile designed to strengthen the airborne component of France's nuclear deterrent, with entry into service expected by 2035.
  • Infineon is set to open a chip factory in Germany as part of the EU's initiative to promote semiconductor sovereignty.
  • The UK health regulator approves Novo Nordisk's weight-loss pill.
  • Partners Group hits its lowest level since 2020 following the imposition of withdrawal restrictions.
  • SaltX Technology selected by ThyssenKrupp for a direct air capture project in Canada.
  • SpaceX is set to go public at $135 per share, valuing the company at $1.77 trillion.
  • Adobe raises its annual revenue guidance. The stock was down 2% in after-hours trading.
  • Astera Labs, Teradyne, CoreWeave, Nebius, and Rocket Lab will join the Nasdaq 100 on June 22. Charter Communications, Cognizant, Insmed, Verisk Analytics, and Zscaler are being removed from the index.
  • Dana is merging with Eaton's mobility division for $5.1 billion, driven by strong demand for auto parts.
  • Alibaba is offering $1.5 billion to acquire the Chinese food delivery company Pupu.
  • WuXi AppTec files a lawsuit against the Pentagon after being added to China's military blacklist
  • Today's key earnings reports: Fraport AG, Molten Ventures Plc, Picton Property Income Limited, Vp plc.

See more news from UK listed companies here

Analyst Recommendations:

  • Wizz Air Holdings Plc: Bernstein maintains its market perform recommendation and reduces the target price from GBX 1300 to GBX 1200.
  • Softcat Plc: Cantor Fitzgerald maintains its overweight recommendation and raises the target price from GBX 1900 to GBX 2130.
  • Anglo American Plc: HSBC maintains its hold recommendation and raises the target price from GBP 30.50 to GBP 34.
  • Halma Plc: Citi upgrades to buy from neutral and raises the target price from GBP 37 to GBP 46.
  • Barclays Plc: JP Morgan maintains its overweight recommendation and raises the target price from GBP 5.90 to GBP 6.
  • Caixabank, S.a.: Oddo BHF maintains its outperform recommendation and raises the target price from EUR 13.10 to EUR 13.80.
  • Konecranes Oyj: Nordea Bank maintains its buy recommendation and reduces the target price from EUR 36 to EUR 34.
  • Be Semiconductor Industries N.v.: BNP Paribas maintains its outperform recommendation and raises the target price from EUR 276 to EUR 320.
  • Danone: BNP Paribas maintains its outperform rating and raises the target price from EUR 82 to EUR 85.
  • Lindt : Barclays maintains its underweight recommendation and reduces the target price from CHF 100000 to CHF 95000.
  • Unipol Assicurazioni S.p.a.: Berenberg maintains its buy recommendation and raises the target price from EUR 29.20 to EUR 32.50.
  • Bayer Ag: Berenberg maintains its hold recommendation and raises the target price from EUR 40 to EUR 40.50.