Japan's Softbank is reportedly in talks to buy the 25 per cent stake in chip designer Arm currently held by its Vision Fund 1, ahead of an expected initial public offering. Reuters agency reported that Japan's SoftBank - which holds 75 per cent of Arm - was negotiating a deal with VF1, the $100 billion investment fund set up in 2017, noting that a deal could give VF1 investors a big boost after years of meagre returns. Saudi Arabia's Public Investment Fund and Abu Dhabi's Mubadala Investment Co. are among VF1's biggest investors. Softbank plans to launch the long-awaited IPO of British chip designer Arm as early as September. This is likely to be Wall Street's biggest IPO of the year, raising $8 billion to $10 billion at a valuation of $60 billion to $70 billion.

Despite struggling in early trades and staying a bit sluggish at times during the course of the day's session, the Swiss stock market ended modestly higher on Monday. The mood remained cautious amid concerns about the health of the world's second largest economy and on uncertainty about the outlook for interest rates. The benchmark SMI ended with a gain of 28.48 points or 0.26% at 11,110.11. The index touched a low of 11,064.87 and a high of 11,125.75 in the session. UBS Group climbed nearly 2%. Alcon and Kuehne & Nagel ended higher by 0.87% and 0.73%, respectively. Logitech, ABB, Geberit, Givaudan, Swiss Re, Sonova, Nestle and Swiss Life Holding posted modest gains. Richemont declined 0.65%. Lonza Group, Sika and Roche Holding edged down marginally. In the Mid Price Index, Georg Fischer ended down 1.68%. Clariant, Meyer Burger Tech and Tecan Group lost 0.1 to 1.25%. AMS, Straumann Holding, Swatch Group and Barry Callebaut also ended weak.

European stocks closed mixed on Monday after a cautious session amid concerns about the health of the world's second largest economy after Country Garden Holdings, a major property developer in China, missed bond payments and warned of multibillion-dollar losses. The pan European Stoxx advanced 0.15%. Germany's DAX gained 0.46% and France's CAC 40 edged up 0.12%, while the U.K.'s FTSE 100 ended 0.23% down. Switzerland's SMI gained 0.26%. Among other markets in Europe, Czech Republic, Denmark, Finland, Greece, Ireland, Norway, Poland, Portugal and Russia ended weak. Turkiye closed modestly higher, Austria, Belgium, Iceland and Netherlands edged up marginally, while Spain and Sweden closed slightly down. In the UK market, B&M European Value Retail gained about 3% and Airtel Africa rallied nearly 3%. JD Sports Fashion gained 2.2%. Coca-Cola, Hargreaves Lansdown, Legal & General Group, Admiral Group, GSK and Pershing Square Holdings ended higher by 1 to 1.8%. Ocado Group dropped 4.33%. Anglo American Plc, Entain, Persimmon, Fresnillo, Glencore, ABRDN and Flutter Entertainment lost 2.2 to 3.2%. Rio Tinto declined 1.67%, while Croda International, Smith & Nephew, Spirax-Sarco Engineering and Taylor Wimpey ended lower by 1 to 1.25%.

A rebound in tech shares lifted U.S. stock indexes Monday, while yields on longer-term bonds stabilized after briefly threatening their highest levels in more than a decade. Reversing a recent trend of outperformance by the Dow Jones Industrial Average, the tech-heavy Nasdaq Composite led the way among the three major indexes, gaining 1.1%. The S&P 500 rose 0.6%, while the Dow ticked up 0.1%. Tech shares got a particular boost early in the trading session when bond yields reversed course after climbing sharply before -- and just after -- the opening bell. Growing optimism about the economy has also helped buoy stocks this year. Stocks can get unsettled, however, when Treasury yields surpass key thresholds, giving investors an alternative to riskier assets. That is especially true for the shares of high-growth businesses, including many tech companies, which are valued in large part for earnings that are expected to arrive further in the future. Highlighting the day's strength in tech stocks, shares of Nvidia rose 7.1% after falling 13% this month through Friday. The chip-making giant earlier this year became the poster child for investor optimism about artificial intelligence technology when it revealed upbeat sales guidance based on what it said was surging demand for chips needed to create AI tools. Optimism surrounding AI has helped lift tech stocks broadly following a brutal 2022 defined by sharply rising interest rates and fears of a near-term recession.

The stock exchanges in Tokyo and Sydney show a recovery on Tuesday from the losses at the beginning of the week, while the trend on the Chinese stock markets points downwards again - albeit rather moderately. In Seoul, South Korea, business is paused due to a public holiday. Japan's Nikkei 225 index rises by 0.9 per cent to 32,347 points, in Sydney the market barometer is up by 0.6 per cent.

The yield on the benchmark 10-year U.S. Treasury note at one point reached as high as 4.215%, near the 4.231% level set on Oct. 24 that was its highest close since 2008. That proved to be a turning point, bringing in buyers who drove the yield back below 4.2% to finish the day at 4.181%.

UBS lowers Bucher to CHF 445 (455) – Buy
UBS lowers Prudential to 1,405 (1,440) GBp – Buy
Citi lowers Ströer target to EUR 48 (50) – Neutral

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