Clariant shares rose 0.8 per cent after its second-quarter results. The chemical company reported that sales and profit fell during the period due to weak demand as customers sought to reduce inventories. The recently lowered outlook for 2023 was confirmed. Operating profit before depreciation and amortization (EBITDA), meanwhile, fell 19 per cent to 175 million Swiss francs in the second quarter. However, the corresponding margin of 16.1 per cent was markedly higher than in the first quarter of the year (13.9%) thanks to cost cutting. Nevertheless, the Muttenz-based company reaffirmed its medium-term ambitions, which are valid until 2025. According to these, Clariant aims to grow by 4 to 6 percent annually and achieve an operating profit margin of 19 to 21 percent. With its portfolio focused on high-value specialties and markedly slimmed down, Clariant is now well able to push through price increases.

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On Friday, the SMI dropped by 0.5 per cent to 11,318 points. Among the 20 SMI stocks, there were 15 price losers and five price winners. 16.22 million shares were traded (previously: 22.91 million). There were only a few important company results on the agenda. The shares of Swatch (+1.2%) and Richemont (-0.2%) showed no consistent trend. At luxury manufacturer Kering, the financial results did not fully impress. Kering is also taking a 30% stake in Italian fashion brand Valentino. Richemont, for its part, is taking a controlling stake in Italian luxury shoe maker Gianvito Rossi. Nestle shares slid 0.6 per cent to 107.16 francs on the back of various analyst comments following the previous day's results. RBC and Deutsche Bank lowered their price targets, while Berenberg raised its target to 128 from 126 francs and confirmed its buy recommendation.

European shares were mixed on Friday. The Stoxx Europe 600 index shed 0.2% to 470.8 points. In Paris, the CAC 40 and SBF 120 gained 0.2% and 0.1% respectively. The DAX 40 in Frankfurt gained 0.4%, while the FTSE 100 in London finished stable. IT services company Atos fell 22.5% as the digital services firm's restructuring took a bigger-than-expected toll on its first-half free cash flow. CGG (-16.82%) generated negative net cash flow of $79 million in the second quarter, including a €45 million negative change in working capital requirements. Retail group Casino (-10%) has signed an agreement in principle to restructure its debt with its main creditors and a consortium made up of EP Global Commerce (EPGC). Engineering and technology consulting group Alten (-7.6%) saw its organic sales growth slow sharply in the second quarter to 8.6%, compared with 14.4% in the first quarter. Capgemini (-7%) confirmed its forecasts for 2023 as a whole. The results of broadcasting group TF1 (+11.5%) fell less than expected in the first half, thanks to good cost control, according to JPMorgan. Clariane, formerly known as Korian, gained 11.3% as the operator of retirement homes and clinics confirmed its targets for the first half of the year. British bank Standard Chartered (+4% in London) announced higher-than-expected second-quarter pre-tax profits, a major share buyback programme and an improved outlook.

U.S. stocks rebounded Friday to cap off a week of gains, as soft inflation data boosted investor sentiment and shares of big tech companies powered the indexes higher. The S&P 500 rose 1%. The Dow Jones Industrial Average added about 177 points, or 0.5%. The Nasdaq Composite jumped 1.9% All three major indexes locked in weekly gains, with the S&P 500 and Dow each logging a third consecutive positive week. The Dow on Wednesday clinched a winning streak of 13 trading days, its longest streak since 1987. This year’s market rally has picked up steam as the U.S. economy has proven more resilient than expected, bolstering investor optimism in the likelihood of a soft landing in which the Federal Reserve gets inflation under control without triggering a recession. The S&P 500 is now up 19% in 2023, after falling 19% in 2022. New economic reports released Friday showed a cooling in price and pay pressures. The personal-consumption expenditures price index, the Fed’s preferred inflation gauge, rose 3% in June from the year earlier, down from a 3.8% rise the prior month, the Commerce Department reported Friday. A separate report on wages released Friday from the Labor Department showed a slowdown in employer spending on compensation. Shares of Meta Platforms and Alphabet both rose Friday and gained more than 10% this week after each company reported accelerating sales growth. Those megacap tech stocks are heavily weighted in the S&P 500 and boosted the communication services sector, which was the best-performing segment of the broad stock index on Friday. Intel gained 6.6% after it reported a return to profit on the back of a resurgent PC market. Meantime, Chevron and Exxon Mobil shed 0.5% and 1.2%, respectively, after the oil giants’ quarterly profits dipped from last year’s records. In other corporate news, Ford shares dipped 3.4% after the company warned of steeper-than-expected losses in its electric-vehicle business. Tesla rose 4.2% and Rivian added 3.4%.

In Asia, major indexes broadly closed with gains on Monday. In anticipation of further stimulus measures, the HSI in Hong Kong rises by 1.5 per cent and the Shanghai composite advances by 0.6 per cent. In Tokyo, the Nikkei-225 climbs 1.1 per cent. The 10-year Japanese government bond yield rose to its highest level in nine years. Toyota Tsusho surges 8.1 per cent after the company raised its profit outlook. Kansai Electric rally 4.5 per cent as the company returned to profit. Fanuc, on the other hand, plunges 8.4 per cent following a lowered profit forecast. The Kospi in South Korea added 0.8 per cent - driven by private investors. SK Innovation climbs 5.1 per cent despite weak second-quarter figures. The company also manufactures car batteries for electric vehicles through a subsidiary. The share prices of its competitors are markedly higher. The hotel chain operator Hotel Shilla presents positive second quarter figures, the share price gains 3.1 per cent.

Treasury yields broadly fell Friday after fresh data showed U.S. inflation eased further in June, yet they advanced for the week on a round of resilient economic reports. The 10-year Treasury note yield declined by 5 basis points to 3.954%. The 2-year Treasury note yield lost 6 basis points to 4.870%.

Target price Holcim: Berenberg upgrades to CHF 54 (50) - Sell

Target price Adecco: Royal Bank of Canada lowers to CHF 43 (45) - Outperform

Target price Nestlé: Berenberg cuts to CHF 128 (130) - Buy

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