Bayer AG backed its 2022 financial objectives after third-quarter sales beat expectations and it reported earnings growth in all segments. The German pharmaceutical-and-agricultural company posted a net profit of 546 million euros ($547.2 million) for the period, up from EUR85 million the year prior, when its agricultural division was in a recovery phase. Earnings before interest, taxes, depreciation and amortization before special items - a closely-watched metric - was EUR2.45 billion for the period, up from EUR2.09 billion the year prior. Sales rose to EUR11.28 billion for the quarter from EUR9.78 billion the year prior. Both sales and Ebitda before special items beat analysts’ expectations, while net profit came slightly short. The company’s agricultural division, a key growth driver, posted higher sales in the third quarter compared with the previous year. The business achieved double-digit percentage gains in Latin America and the Europe, Middle East and Africa region, but sales declined significantly in North America due to higher seed returns, it said. The pharmaceutical division also saw a rise in sales as prescription medicines sales were 2.9% higher than the previous year, Bayer said.

The Switzerland stock market shrugged off a weak start and moved higher to close on a firm note on Tuesday, in line with the trend seen across Europe. The benchmark SMI ended with a gain of 76.65 points or 0.71% at 10,827.04. The index scaled a low of 10,718.32 and a high of 10,845.27 intraday. Logitech, Sika and Geberit gained 4 to 4.3%. Sonova climbed 3.55% and Givaudan ended nearly 3% up. Swiss Life Holding, Partners Group, Lonza Group and Credit Suisse surged 1.7 to 2%, while Alcon gained about 1.2%. Zur Rose, up nearly 6.5%, was the biggest gainer in the Mid Price Index. VAT Group, Bachem Holding, Straumann Holding, Belima Holding, SIG Combibloc, Adecco, Kuehne & Nagel, George Fischer, Temenos Group and Durfy gained 2 to 6%. Swatch Group slipped 2.5%. PSP Swiss Property and Roche Holding lost 1.4% and 1.81%, respectively.

European stocks closed higher on Tuesday with traders building up some positions ahead of the outcome of the U.S. midterm elections, and the crucial U.S. consumer inflation data. Stocks gained in stregth after turning in a somewhat mixed performance earlier in the session. The pan European Stoxx 600 climbed 0.78%. The U.K.'s FTSE 100 edged up 0.08%, Germany's DAX surged 1.15% and France's CAC 40 gained 0.39%, while Switzerland's SMI ended higher by 0.71%. Shares of mining companies fell on reports coronavirus cases increased in Guangzhou and other Chinese cities. In the UK market, B&M European Value Retail, Frasers Group, Ocado Group, Fresnillo, Endeavour Mining, JD Sports Fashion and Schrodders gained 3 to 4.5%. Spirax-Sarco Engineering, Anglo American Plc, Experian, Antofagasta, Croda International Group, Rentokil Initial, United Utilities, Coca-Cola, Next, Severn Trent and Rolls Royce Holdings surged 2.5 to 3%. Associated British Foods gained about 2%. After reporting a jump in annual profits, the Primark owner has announced a £500mln share buy-back program for the current financial year. Hammerson climbed 4.75%. The British retail property firm said that footfall at its Irish flagships improved to 90pc of 2019 levels in the third quarter of the year.

U.S. stock indexes finished ahead on Tuesday as investors awaited the outcome of midterm elections, which are expected to result in a divided government. Stocks rallied in the morning before the S&P 500 and the Nasdaq Composite briefly fell into the red in afternoon trading. They rallied again before market close, though they pared their earlier gains. The S&P rose 21.31 points, or 0.6%, to 3828.11. The Nasdaq Composite added 51.68 points, or 0.5%, to 10616.20. The Dow Jones Industrial Average rose 333.83 points, or 1%, to 33160.83. Investors' optimism had built ahead of the midterms, which could see a shift in the control of Congress and offer signals about the next presidential race. The Democrats' narrow control of both chambers is up for grabs. Nonpartisan analysts are projecting Republicans will take control of the House of Representatives, leading to a divided government and potentially limiting the scope of the Biden administration's legislative plans. In corporate news, shares of Take-Two fell $14.83, or 14%, to $93.57 after the game publisher cut its fiscal-year outlook, citing shifts in the company's pipeline, fluctuations in foreign-exchange rates and a more cautious view of the economy. Lyft shares fell $3.24, or 23%, to $10.90 after the ride-sharing company said its revenue growth slowed and the number of people using its service remained below prepandemic levels.

The East Asian stock markets and the Sydney Stock Exchange show no consistent direction on Wednesday. While the Chinese stock exchanges in Shanghai and especially in Hong Kong (-1.5 per cent) are down and the Nikkei index in Tokyo is also down 0.5 per cent to 27,729 points, the Kospi in Seoul is ahead with a plus of 1 per cent. In Sydney, the market barometer closed at an eight-week high with a gain of 0.6 per cent.

The yield on the benchmark U.S. government bond declined following a four-day rise. The yield on the 10-year Treasury note edged down to 4.125% from 4.212% on Monday. Yields rise as prices fall.

CS lowers Richemont target to CHF 105 (128) – Neutral
CS lowers Swatch to Underperform (Outperform) – CHF 180 (360)
CS lowers LVMH target to EUR 785 (800) – Outperform

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