Novartis announced its agreement to acquire U.S. Chinook Therapeutics for a total value of up to $3.5 billion. The deal includes $3.2 billion upfront or $40 per share in cash upon closing, plus a contingent value right with a value of up to $0.3 billion or $4 per share. This is payable in cash upon the achievement of certain regulatory milestones. The transaction has been approved by Novartis and Chinook Boards, and is expected to close in the second half of 2023, subject to customary closing conditions. The acquisition is fully in line with Novartis strategy to focus on innovative medicines and will significantly expand its renal portfolio, complementing the existing pipeline. Chinook is a clinical stage biopharmaceutical company with two high-value, late-stage medicines in development for IgA nephropathy or IgAN, a rare, severe chronic kidney disease. Novartis noted that the agreed deal would include atrasentan, an oral endothelin A receptor antagonist, in Phase 3 development for IgAN, and zigakibart, an anti-APRIL monoclonal antibody, entering Phase 3 for IgAN.

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The Swiss stock market finished lower on Friday for the third straight session, dropping more than 210 points or 1.9 percent in that span. The SMI opened slightly higher but quickly turned lower, spending the rest of the day well beneath the unchanged line - in line with most other European markets. For the day, the index shed 54.48 points or 0.48 percent to finish at 11,254.42 after trading between 11,238.63 and 11,321.23. Among the actives, Givaudan plummeted 3.08 percent, while Lonza Group tanked 2.63 percent, Swiss Re tumbled 1.74 percent, Swatch Group advanced 0.99 percent, ABB added 0.76 percent, Roche Holding dropped 0.65 percent, Swisscom gained 0.51 percent, Credit Suisse slumped 0.37 percent, UBS sank 0.30 percent, Swiss Life collected 0.30 percent, Novartis dipped 0.22 percent and Zurich Insurance eased 0.12 percent. In corporate news, UBS AG (UBS) and the Swiss government have signed a Loss Protection Agreement (LPA), through which the government will bear potential realized losses upon the completion of the acquisition of Credit Suisse Group (CS). The acquisition is expected to be completed as early as June 12.

The major European markets closed slightly lower on Friday, maintaining their trend of little movement as France and Germany reversed Thursday's slim gains while the UK was down for the third straight session. The DAX in Germany shed 40.12 points or 0.12 percent to finish at 15,949.84, while FTSE in London sank 37.38 points or 0.49 percent to close at 7,562.36 and the CAC 40 in France eased 9.01 points or 0.12 percent to end at 7,213.14. In Germany, Symrise plummeted 4.34 percent, while Vonovia surged 3.15 percent, BASF tumbled 1.80 percent, Bayer retreated 1.54 percent, Deutsche Post declined 1.48 percent, Deutsche Telekom jumped 1.00 percent, Heidelberg Materials lost 0.72 percent, Deutsche Borse rose 0.52 percent, Infineon Technologies gains 0.49 percent and Deutsche Bank fell 0.20 percent. In London, Experian stumbled 1.65 percent, while Auto Trader rallied 1.28 percent, Haleon slumped 1.17 percent, Rentokil skidded 1.11 percent, Vodafone jumped 0.98 percent, Prudential sank 0.93 percent, Shell lost 0.63 percent, British American Tobacco added 0.35 percent, Centrica fell 0.21 percent and Rightmove rose 0.19 percent. In France, Vivendi plunged 2.35 percent, while Societe Generale spiked 1.97 percent, Danone declined 1.94 percent, BNP Paribas surrendered 1.65 percent, Veolia Environment advanced 0.98 percent, Credit Agricole dropped 0.91 percent, Orange sank 0.64 percent, Engie added 0.32 percent and Sanofi eased 0.04 percent.

U.S. stocks rose in muted trading Friday, helping the S&P 500 secure its fourth consecutive weekly gain. Markets were relatively quiet with investors largely in wait-and-see mode ahead of next week's inflation data and Federal Reserve interest-rate decision. Major indexes posted modest gains and losses over the course of the week. Underneath the surface, though, a number of stocks staged big rallies – helping lift the S&P 500 out of a bear market on Thursday and giving the Nasdaq Composite its longest streak of weekly gains since 2019. Tesla shares, which had surged all week long, extended their advance Friday after General Motors said the prior afternoon that it would produce electric vehicles with Tesla charge ports starting from 2025. Chip makers also rose, adding to their already substantial gains for the year. Shares of companies like Nvidia and Advanced Micro Devices have soared, thanks to rising interest among investors in companies involved in artificial intelligence and computing. Investors are still in debate over whether or not the gains can hold. The S&P 500 rose 0.1% Friday and posted a 0.4% weekly gain. The Nasdaq climbed 0.2% for the day and 0.1% for the week, while the Dow Jones Industrial Average advanced 0.1% for the day and 0.3 % for the week. Tesla shares finished up 4.1% at $244.40, logging their 11th consecutive session of gains. That marks their longest such streak since the 11-session streak of gains they posted in January 2021, according to Dow Jones Market Data. The electric-car company was the most popular stock of choice for retail traders over the past week, according to Vanda Research. GM also rose, following its announcement of its deal with Tesla. The company's shares finished up 1.1% at $36.23. Netflix shares were up 2.6% to $420.02 after analytics company Antenna reported the streaming service's effort to crack down on password sharing among users appeared to lead to a jump in new subscribers in May.

The stock markets in East Asia are mixed on Monday. While the stock exchange in Japan, which was already the clear winner on Friday, recorded slight gains, most other stock markets fell slightly. There is no trading in Australia because of King's Birthday. In Tokyo, the Nikkei index rises by 0.3 per cent, but comes back from slightly higher premiums at the beginning of trading. Tailwinds come from pharmaceutical and healthcare stocks. Eisai gained 1.7 per cent and continued the upward trend of the previous days.

Trading in the U.S. bond market was relatively muted Friday. The yield on the 10-year U.S. Treasury note crept up to 3.744% from 3.714% a day earlier. Yields rise as bond prices fall.

Citi lowers the Swatch target to CHF 289 (333) – Neutral

HSBC lowers Shop Apotheke to Reduce (Hold) – EUR 72 (55)

CS raises BHP to GBP 25 (24) – Neutral

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