Toyota Motor Corp. said it still can’t get its hands on enough semiconductors to meet its production goals, despite signs of excess supply elsewhere in the chip business. Toyota on Tuesday lowered its production target for the current fiscal year through March to 9.2 million units from a previous goal of 9.7 million units, citing a shortage of automotive chips. Chip maker STMicroelectronics NV announced in late October that its backlog of automotive orders remains well above current and planned manufacturing capacity through 2023. Toyota also reported results for the July-September quarter on Tuesday. It said net profit in the quarter fell 31% from a year earlier to ¥434 billion, equivalent to $2.9 billion. The figure fell short of analysts’ estimates, and Toyota shares were down more than 2% in afternoon trading in Tokyo. The company said profit was weaker in part because of higher costs of materials, despite the positive effects of a weaker yen.

On Monday, the SMI added 0.5 per cent to 10,828 points. Among the 20 SMI stocks, there were 13 price gainers and 7 price losers. 49.18 (Friday: 46.1) million shares were traded. The SMI was led by Credit Suisse (+5.2% to 4.13 francs). Here, details of the announced capital increase worth billions provided stimulus. Saudi National Bank and other investors are to subscribe to 462 million new shares at a price of 3.82 francs. After the capital increase, Saudi National Bank will thus hold 9.9 per cent of the capital. The issue price for the shares to be placed with existing shareholders in the rights offering, meanwhile, is CHF 2.52. Existing shareholders can buy two new shares for every seven held. Overall, Credit Suisse expects total gross proceeds of CHF 4.0 billion. Holcim gained 1.0 percent to 45.48 francs after Credit Suisse raised its price target to 58 from 53 francs. The analysts speak of a strong performance in the third quarter and point to the improved forecast. Both were achieved against the backdrop of a weakening macro environment, CS emphasised. Ems-Chemie lost 3.8 per cent to 629.50 francs.

The European stock exchanges rescued slight gains to the finish line on Monday, after data showed the eurozone inflation rate surged to 10.7% in October, reaching a fresh record high and highlighting the challenges facing the European Central Bank after it signalled an upcoming slowdown in the pace of its rate increases. The DAX gained 0.1 per cent 13,254 while the Euro-Stoxx-50 added 0.2 per cent to 3,621 points. Fresenius (+5.1%) and its subsidiary FMC (+6.5%) rose sharply despite profit warning. In the airline sector, IAG increased by 4.8 and Easyjet 6.1 per cent. A possible takeover of Easyjet by IAG, as reported in the Times, would make perfect sense, said AJ Bell analyst Russ Mould. A low-cost airline would significantly strengthen IAG's position in the holiday airline market and also provide access to many desirable airports, Mould said. The pandemic has raised concerns about the future of business travel. Companies have realised that it is easier, cheaper and more environmentally friendly to hold meetings via video conferencing, Mould emphasised.

U.S. stocks slipped as the Federal Reserve prepared this week to discuss how much more to raise interest rates as it tries to calm inflation. Despite Monday’s losses, the major indexes locked in gains for October, which traders spent weighing whether the end is in sight for the Fed’s most aggressive rate moves. The Dow Jones Industrial Average added 14% for its best month since 1976. The S&P 500 and the tech-focused Nasdaq Composite both notched single-digit monthly gains. This week, traders are shuffling their holdings ahead of Wednesday, when Fed officials are almost certain to raise interest rates by another 0.75 percentage point. On Monday, the S&P declined 29.08 points, or 0.7%, to 3871.98 and the tech-focused Nasdaq shed 114.31, or 1%, to 10988.15. The Dow dropped 128.85, or 0.4%, to 32732.95. Investors are poring over third-quarter earnings, which have helped boost some companies whose reports showed resilience in a turbulent economy. Some large tech companies such as Microsoft, on the other hand, have seen selloffs after posting lackluster results. Tech stocks helped drag down stock indexes on Monday. Facebook’s parent company, Meta Platforms, lost $6.04, or 6.1%, to $93.16, continuing last week’s slide that followed a disappointing earnings report. Apple shares fell $2.40, or 1.5%, to $153.34 as Foxconn, an important contributor to Apple’s iPhone production, struggled with a Covid-19 outbreak at a factory in China. Terran Orbital added over 2 per cent after defence technology group Lockheed Martin (+0.4%) increased its stake in the satellite technology provider. Thermo Fisher Scientific (+2.0%) strengthened its diagnostics business with the purchase of The Binding Site Group for $2.6 billion. Ford gained 0.8 per cent on severance packages for employees deemed "underperforming". First Solar jumped just under 10 per cent. According to Bank of America analysts, the solar energy company's third quarter report shows the beginning of a new very favourable supply environment against the backdrop of the Inflation Mitigation Act.

In Asia, major indexes closed with gains on Tuesday. In Tokyo, the Nikkei 225 index rises by 0.2 per cent. Japan Tobacco jumps 9 per cent after raising sales and profit targets. Komatsu (+4.3%) figures are also positively received. Kyocera (-7.3%), on the other hand, missed expectations with its quarterly figures. China’s benchmark Shanghai Composite edged up 1.2 per cent, while Hong Kong’s Hang Seng gains 3.6 per cent, led by technology stocks. Meanwhile, bad news again emerged from the real estate sector. CIFI Holdings plunges 26 per cent after the company halted debt repayments, citing the failure of negotiations with its creditors. South Korea’s Kospi adds 1.4 per cent, supported by favourable corporate earnings. LG Chem, for example, gains 8.8 per cent after presenting surprisingly solid third-quarter figures.

Long-dated U.S. government debt yields rose on Monday as traders prepared for the Federal Reserve’s rate-setting decision in two days. The 10-year Treasury note was yielding 1.592%, down 2.2 basis points at 3 p.m. Eastern Wednesday.

CS raises Holcim target to CHF 58 (53) - Outperform
UBS lowers target Swiss Re to CHF 68 (71) - Sell
Citi cuts Zur Rose target to CHF 30 (35) - Neutral

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