JPMorgan Chase said its second-quarter profit jumped 67%, including a lift from acquiring the failed First Republic in early May. The First Republic rescue deal, struck over a weekend with the aid of federal regulators, boosted JPMorgan's consumer and commercial banks with new clients, branches and deposits. It led to an immediate $2.7 billion gain but also forced the bank to take $1.2 billion in credit charges. In total, JPMorgan's second-quarter profit rose to $14.47 billion, or $4.75 per share, up from $8.65 billion, or $2.76 a share, a year ago. Analysts had expected $3.97 a share, according to FactSet. Revenue rose 34% from a year earlier to $41.31 billion. Analysts had expected $38.66 billion. Excluding First Republic, JPMorgan said profit still would have been up 40% and revenue would have been up 21%.

The Swiss stock market ended on a firm note on Friday thanks to brisk buying at several frontline counters. The benchmark SMI ended with a gain of 88.53 points or 0.8% at 11,110.19, slightly off the day's high of 11,114.37. Partners Group shares soared 12%. Partners Group said client capital commitments totaled $8 billion in the first half of 2023, down from $13 billion in the year-ago period, and that it had $141.7 billion under management, improving from $135.4 billion at the end of last year. In a statement issued on Thursday, the company CEO David Layton reiterated guidance that there is potential to increase assets under management by 10 to 15% annually. Lonza Group climbed about 2.5%. Sika, Geberit, Roche Holding, Sonova, Richemont and Logitech gained 1 to 1.7%. Swiss Re and Swiss Life Holding ended modestly lower. UBS Group and Zurich Insurance Group edged down marginally. In the Mid Price Index, Meyer Burger Tech rallied 5.1%. Straumann Holding, Belimo Holding, Lindt & Spruengli, Swiss Prime Site, Bachem Holding, DocMorris and SIG Combibloc gained 1 to 2%. Swatch Group ended lower by about 2.4%, Barry Callebaut lost 1.67% and Clariant declined 1.1%.

European stocks ended on a mixed note on Friday despite seeing some bright moments in positive territory during the course of the day's session. Easing concerns about interest rates after U.S. consumer price and producer price inflation data came in tamer-than-expected, and fairly strong earnings updates from major U.S. banks Citigroup Inc., Wells Fargo and JP Morgan Chase helped underpin sentiment and limit losses. The pan European Stoxx 600 ended down 0.11%. The U.K.'s FTSE 100 edged down 0.08% and Germany's DAX dropped 0.22%. Switzerland's SMI climbed 0.8%. Among other markets in Europe, Austria, Belgium, Finland, Norway, Portugal, Spain and Sweden ended weak. Czech Republic, Denmark, Greece, Iceland, Ireland, Netherlands, Poland, Russia and Turkiye closed higher. In the UK market, Ocado Group ended more than 4% down. Croda International, Rolls-Royce Holdings, BP, Legal & General, Johnson Matthey, Shell, Aviva, Fresnillo and M&G shed 1 to 3%. Spirax-Sarco Engineering climbed more than 3%. Mondi, Halma, Experian, Unite Group, Auto Trader Group, RightMove, Smurfit Kappa Group, Rentokil Initial, Frasers Group, Burberry Group and Persimmon gained 1 to 2%. McBride shares soared 20% after the consumer goods manufacturer confirmed that it will report a return to profitability for fiscal 2023. In the German market, Brenntag ended lower by more than 3%. BASF drifted down 2.3%. Commerzbank and Siemens Energy also ended sharply lower. Deutsche Boerse, Siemens Healthineers, Daimler Truck Holding, SAP and Fresenius gained 0.6 to 1.3%. In Paris, TotalEnergies shed 2.6%. AXA, Safran, Societe Generale, Airbus Group, ArcelorMittal and Carrefour lost 1 to 1.25%.

The S&P 500 hovered near its highest close since April 2022 on Friday after signs of cooling inflation this week boosted stocks marketwide. The broad U.S. stock index edged lower for the day after earnings reports from big banks suggested resilience in the economy, but executives cautioned that a recession was still possible. The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite recorded their best weeks since March, rising 2.3% and 3.3%, respectively. The S&P 500 gained 2.4% in a broad-based advance, with all 11 sectors moving higher for the week. On Friday investors turned their focus to corporate earnings as banks began to share their results. JPMorgan Chase, Wells Fargo and Citigroup beat analysts' forecasts for profit and revenue, with JPMorgan's profit jumping 67% and Wells Fargo's rising 57%. But there were signs of potential challenges ahead. Higher interest rates meant the banks had to pay more to depositors, and customers still withdrew some of their money. JPMorgan shares rose 0.6%, while Wells Fargo shares slipped 0.3% and Citi shares fell 4%. Investors said they are waiting for reports from smaller lenders before drawing broad conclusions about the health of the sector, which just months ago saw the failures of Silicon Valley Bank, Signature Bank and First Republic Bank. Shares of UnitedHealth Group gained 7.2%, leading the S&P 500, after the healthcare and insurance company lifted its earnings guidance.

Stock markets in East Asia are down for the start of the week. However, there is no trading in Tokyo due to a public holiday and in Hong Kong business has not yet started due to a typhoon warning and could possibly be cancelled altogether. In Shanghai, the market barometer is down 1.2 per cent and in Seoul the Kospi loses 0.6 per cent. The main topics of the day are GDP growth in China in the second quarter and the interest rate policy of the Chinese central bank. Although China's GDP grew by 6.3 per cent compared to the same quarter last year, economists had expected even more.

In U.S. bond markets, the yield on the benchmark 10-year U.S. Treasury note ticked up to 3.818% from 3.759% Thursday. Yields rise as bond prices fall.

UBS lowers Barry Callebaut target to CHF 2,250 (2,400) – Buy
UBS lowers K+S target to EUR 16 (17) – Neutral
Citi raises the target of Deutsche Telekom to EUR 25.50 (25) – Buy

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