3M’s board approved a $6 billion settlement to resolve claims that its earplugs caused hearing loss among veterans, putting a long-awaited price tag on a large chunk of the company’s legal troubles. The settlement, which people familiar with the matter said will be paid out over multiple years, is substantially less than the $10 billion to $15 billion some analysts expected. 3M shares climbed Monday after news of the initial settlement terms was reported over the weekend. Veterans allege that 3M and Aearo Technologies, a company 3M acquired in 2008, produced faulty earplugs that failed to protect their hearing from noise damage after they were issued by the U.S. military. 3M has said the earplugs work correctly when used with proper training. The earplug litigation has become the largest single mass tort in U.S. history, with more claims than any one company has faced for earlier mass litigation including asbestos exposure, opioid sales or wildfires. The settlement marks another step by 3M to resolve litigation that has weighed on the company and its share price. In June, the company reached a tentative settlement over so-called forever chemicals, broadly known as PFAS, in drinking water. That agreement between 3M and municipal water providers, which needs court approval, could cost 3M as much as $12.5 billion. 3M’s shares Monday closed 5.2% higher at $104.12.

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On Monday, the SMI gained 0.7 per cent to 11,033 points. Among the 20 SMI stocks, there were 18 price gainers and two price losers. 14.22 (previously: 15.12) million shares were traded. Among the individual stocks, Novartis rose by 0.8 per cent. The pharmaceutical company published encouraging study data on its cholesterol-lowering drug Leqvio. The two other heavyweights considered defensive, Roche (hardly changed) and Nestle (+0.3 per cent), lagged behind. Technology stocks such as Logitech (+1.4%) and AMS-Osram (+3.4%) benefited from falling interest rates. Financial stocks were also in demand despite decreasing interest rates. UBS was up 1.6 per cent. Shares of insurers Swiss Life, Swiss Re and Zurich improved by up to 0.8 per cent.

European stocks were higher on Monday, tracking gains in Asia after China's government set out measures to revive stock markets, but with trade quiet as U.K. markets are closed for a public holiday. The Stoxx Europe 600 index gained 0.9% on Monday to 455.3 points. In Paris, the CAC 40 and SBF 120 both rose by 1.3%. The DAX 40 in Frankfurt added 1%. The London Stock Exchange was closed for a bank holiday in the UK. The biotech company Valneva (+2.4%) announced positive initial data from a phase 3 study on the safety of its chikungunya vaccine candidate VLA1553 in adolescents. The European Commission confirmed on Monday that it had authorised the acquisition by electrical supplies distributor Rexel (+2.1%) of Wasco, one of the leading distributors of heating and air-conditioning products and services in the Netherlands. Luca De Meo, CEO of Renault (+1.6%), indicated on Monday that the IPO of Ampère, the carmaker's future subsidiary dedicated to electric vehicles and software, could take place in the spring of 2024, depending on market conditions. Rail equipment supplier Alstom (+1.3%) reported on Monday that the SIF consortium it leads had won a contract worth around €500 million to deliver an Innovia integrated monorail system to the city of Santiago de los Caballeros in the Dominican Republic. Alstom's share of the contract is worth around €370 million.

Major U.S. stock indexes kicked off the week with gains, rising for a second consecutive session and recouping some losses from the summer stock-market slide. The gains were broad-based, with 10 of the S&P 500’s 11 sectors closing in positive territory. The S&P 500 notched its first back-to-back gain of the month after edging lower for much of August. The index rose 0.6%, while the tech-heavy Nasdaq Composite added 0.8%. The Dow Jones Industrial Average added 213 points, or 0.6%. Investors came away from Federal Reserve Chair Jerome Powell’s speech Friday expecting interest rates could stay higher for longer. Traders were recently assigning a 57% probability to the central bank lifting rates again by the end of the year, up from 54% on Friday and 32% a week earlier, according to CME Group’s FedWatch tool. In corporate news, Hawaiian Electric shares leapt 45% after the utility pushed back against claims that its power lines caused the deadly Lahaina wildfire. Shares of 3M rose 5.2% after The Wall Street Journal reported that the company was nearing a settlement regarding claims that it sold the military earplugs that didn’t protect users from hearing loss. Horizon Therapeutics jumped 5.1%. The Federal Trade Commission (FTC) suspended its appeal against the acquisition of the pharmaceutical company by Amgen (+0.1%) for $27.8 billion. American depositary receipts, or ADRs, of Alibaba (+2.7%), JD.com (+2.6%) and Baidu (2.6%) regained ground after Beijing announced a reduction in the tax on stock market transactions in China. Chinese electric vehicle manufacturer XPeng (+5.3% on the ADR) confirmed its intention to acquire the electric vehicle division of VTC company Didi (+3.2% on the ADR) for nearly 5.9 billion Hong Kong dollars, or 744 million dollars. Didi is expected to receive a 3.25% stake in XPeng as part of the deal.

In Asia, major indexes broadly closed with gains. While the HSI climbs by 2 per cent in Hong Kong, the Shanghai Composite rises by 1.4 per cent. BYD climbs 5.5 per cent in Hong Kong. The company posted a sharp rise in first-half profit thanks to strong demand for e-cars and corresponding sales. Earlier, it was announced that BYD had acquired the Chinese manufacturing business of US group Jabil Circuit through a subsidiary. The transaction expands BYD's business involving components for mobile phones. In Japan, on the other hand, the Nikkei-225 rose by only 0.3 per cent - held back by the slightly strengthening yen. The Kospi in South Korea gained 0.2 per cent.

Long-dated U.S. government debt yields slipped on Monday. The 10-year Treasury note yield fell by 3 basis points to 4.206%, while the 2-year Treasury note yield lost 1 basis point to 5.048%.

Target price VAT: Credit Suisse raises to CHF 385 (358) - Outperform

Target price Huber+Suhner: UBS lowers to CHF 99 (104) - Buy

Target price Inficon: Credit Suisse lifts to CHF 1100 (950) - Neutral

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