Novartis said that it has completed its divestment of 'front of eye' ophthalmology assets to Bausch + Lomb, a global eye health company, in a transaction valued up to $2.5 billion. The deal value consisted of 1.75 billion in upfront cash, plus potential additional milestone payments. The deal includes Xiidra, the first approved prescription treatment for the signs and symptoms of dry eye disease, and investigational medicine SAF312 (libvatrep), in development as a first-in-class therapy for chronic ocular surface pain (COSP), as well as the AcuStream delivery device in dry eye indications and OJL332, a second generation TRPV1 antagonist in pre-clinical development. As per the terms of the agreement, Novartis will receive $1.75 billion in an upfront cash payment and potential milestone payments of up to $750 million linked to the achievement of specified sales milestones for Xiidra, and the achievement of specified commercialization and sales milestones for certain pipeline products in the transaction.

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The Switzerland stock market closed modestly higher on Friday with several counters witnessing sustained buying interest amid slightly easing concerns about interest rates after recent data suggested the central banks in the U.S. and Europe might hold their policies steady for now. The benchmark SMI ended with a gain of 45.71 points or 0.42% at 10,963.50 after scaling a low of 10,948.20 and a high of 11,044.82 intraday. Richemont gained nearly 2%. Geberit advanced 1.4%, while Sonova, Swiss Life Holding and Partners Group ended higher by 1 to 1.2%. Sika, Lonza Group and Nestle gained 0.8 to 1%. Logitech, Givaudan and Kuehne & Nagel also ended higher. Swiss Re, Alcon, ABB and Zurich Insurance Group shed 0.2 to 0.7%. Among the stocks in the Mid Price Index, AMS rallied 4.25%, rebounding after posting a hefty loss in the previous session. VAT Group and SIG Combibloc gained 3.2% and 3%, respectively. Tecan Group, Schindler Holding, Schindler Ps, Belimo Holding, Clariant, Barry Callebaut, SGS, Ems Chemie Holding and Adecco gained 1.3 to 2.4%. Meyer Burger Tech ended 3.3% down, and Swatch Group ended lower by about 1.1%. On the economic front, a measure signalling future turning points in the Swiss economy decreased marginally in September to the lowest level in four months, the results of a survey by the KOF Swiss Economic Institute showed Friday.

European stocks closed broadly higher on Friday, but most of the markets in the region still posted sharp losses in the July - September quarter. The pan European Stoxx 600 gained 0.38%. Germany's DAX climbed 0.41%, France's CAC 40 advanced 0.26% and the U.K.'s FTSE 100 edged up 0.08%, while Switzerland's SMI gained 0.42%. Data showing a bigger than expected drop in Eurozone's annual inflation, and the British economy grew stronger than expected in the first quarter, helped underpin sentiment. Meanwhile, personal income in the U.S. increased in line with economist estimates in the month of August, according to a report released by the Commerce Department. The report said personal income climbed by 0.4% in August after rising by 0.2% in July. The advance matched economist estimates. The report also said personal spending increased by 0.4% in August after jumping by an upwardly revised 0.9% in July. Data from Eurostat showed the Eurozone's annual inflation rate fell to 4.3% year-on-year in September, marking the lowest level since October 2021, supporting expectations that the European Central Bank will keep interest rates on hold. The UK economy registered a stronger than estimated recovery in the first half of the year despite high inflation and tighter monetary policy. GDP increased 0.2% in the second quarter, the Office for National Statistics reported. This followed an upwardly revised growth of 0.3% in the first quarter. In the UK market, Pennon rallied nearly 6.5%.

The S&P 500 fell Friday, locking in its worst month so far this year as investors face the possibility that higher interest rates will stick around for a while. A recent surge in longer-term government bond yields has given investors options to earn returns without as much risk as in the stock market. That helped push stocks lower for the week, month and quarter ending Friday. The S&P 500 fell 4.9% in September, its worst month since December 2022. In daily trading Friday, the benchmark index slipped 0.3%, while the Dow industrials lost 0.5%, or about 159 points. The Nasdaq Composite added 0.1%. The S&P 500 is now up 12% for the year, down from a gain of nearly 20% at its 2023 closing high at the end of July. Technology stocks have been hit hard by the climb in rates. Apple shares fell 8.9% in September, while Nvidia shares tumbled 12%. Those stocks remain up 32% and 198%, respectively, in 2023. Energy stocks were the only one of the S&P 500’s 11 sectors to end September higher, rising 2.5% for the month. They were propelled by gains in oil prices, with global benchmark Brent crude climbing 9.7% for the month to $95.31 per barrel. Exxon Mobil shares gained 5.7% in September, while Chevron shares added 4.7%. Stocks initially rallied Friday morning after encouraging data on inflation, raising hopes that the Federal Reserve would stop raising interest rates. Among individual stocks, Nike shares rose 6.7% Friday after the sneaker giant beat Wall Street’s expectations for earnings.

Stock markets in East Asia and Australia are mixed at the start of the new week. Meanwhile, in China, the Caixin purchasing managers' indices for both industry and services fell in September, although both indices remained in expansion territory. On the Tokyo Stock Exchange, the Nikkei index is up 0.5 per cent after the Japanese central bank's Tankan report surprised on the upside.

The yield on the benchmark 10-year U.S. Treasury note settled Friday at 4.572%, up from 4.090% at the end of August. That was its largest one-month yield gain since September 2022, according to Dow Jones Market Data.

Bank of America raises AB Inbev to Buy (Neutral)

UBS lowers Givaudan to CHF 2,750 (2,800) – Sell

Deutsche Bank lowers AMS-Osram to EUR 4 (7) – Hold

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