Pioneer Natural Resources was the S&P 500’s best performer Friday, adding 10% after The Wall Street Journal reported that Exxon Mobil (-1.7%) is closing in on a deal to buy the shale driller, a blockbuster takeover that could be worth roughly $60 billion and reshape the U.S. oil industry. A deal could be sealed as soon as in the coming days, though it is still possible there won’t be one, people familiar with the matter said. After posting a record profit in 2022, Exxon has been flush with cash and exploring options that would push it deeper into West Texas shale. An acquisition of Pioneer, with a market cap of around $50 billion, would likely be Exxon’s largest deal since its megamerger with Mobil in 1999. It would give Exxon a dominant position in the oil-rich Permian Basin of West Texas and New Mexico, a region the oil giant has said is integral to its growth plans. Exxon’s move to purchase Pioneer, even after its acquisition of Denbury, the CO2 pipeline operator, signals the company is still primarily planning to lean on its traditional oil-and-gas business for decades.

The Swiss stock market ended Friday's trading slightly firmer. The SMI gained 0.5 per cent to 10,838 points. Among the 20 SMI stocks, only Nestle and Givaudan recorded price losses. 22.78 (previously: 16.69) million shares were traded. Banking and insurance shares were beneficiaries of the rising interest market rates. UBS improved by 1.8 per cent. Swiss Life, Swiss Re and Zurich posted gains of between 1.6 and 2.2 per cent. The index heavyweight Nestle (-2.5 per cent) was conspicuously weak. One market participant reported basket selling in the food sector, which topped the list of losers across Europe. The share price of fragrance and flavour manufacturer Givaudan slipped 2.4 per cent. The SMI received some support from pharmaceutical heavyweight Novartis, the share price of which rose by 1.3 per cent. Roche (+0.6 per cent) performed in line with the market.

The European stock markets closed on a positive note on Friday, managing to withstand the publication of the monthly employment report for the United States, which could prompt the Federal Reserve (Fed) to pursue its restrictive monetary policy yet more resolutely. The Stoxx Europe 600 index gained 0.8% to 444.9 points. In Paris, the CAC 40 and SBF 120 both climbed 0.9%. Frankfurt's DAX 40 added 1.1%, while London's FTSE 100 edged up 0.6%. Over the week as a whole, however, the Stoxx Europe 600 fell by 1.2%. The banking group Crédit Agricole SA, or CASA (+2.3%), announced on Thursday the launch of a share buyback programme, involving a maximum of around 26.84 million shares. Carmakers Renault (+1.9%) and Volvo (+1.1% in Stockholm) confirmed on Friday the launch of a joint venture to produce electric light commercial vehicles. Pharmaceuticals group Sanofi (-0.6%) is studying the possibility of acquiring US oncology specialist Mirati Therapeutics, Bloomberg reported, citing sources close to the matter. Electronics group Philips fell by 6.9% in Amsterdam after the US Food and Drug Administration (FDA) issued a negative opinion on the recall of the Dutch group's sleep apnoea devices. British oil company Shell (up 1.9% in London) revealed on Friday that its third-quarter results should be supported by an improvement in gas and chemicals trading, while its production volumes are on track to meet its targets.

Stocks rallied to end the week on a high note after investors warmed to an unexpectedly robust U.S. jobs report. The S&P 500 rose 1.2%, the Dow Jones Industrial Average added 0.9%, and the Nasdaq Composite was 1.6% higher. The consumer staples sector was the day’s worst performer after the jobs report stoked concerns about inflation. Among individual stocks, Pioneer Natural Resources was the S&P 500’s best performer Friday, adding 10% after The Wall Street Journal reported that Exxon Mobil is closing in on a deal to buy the shale driller in what would be the biggest corporate takeover of the year. The consumer staples sector was the day’s worst performer. Shares of Walmart, Costco, Dollar General and Mondelez all sold off more than 1.5%, after the jobs report stoked concerns that the inflationary environment that has made people wary of spending isn’t ending soon. Tesla lagged behind the market registering a plus of 0.2 per cent. The electric carmaker cut prices for its Model 3 and Model Y vehicle models in the US. HP Inc shares fell 1.3 per cent. Berkshire Hathaway had sold another 3.1 million shares on Tuesday, dropping its stake in the PC and printer manufacturer to below 10 per cent. South Korea's telecoms regulator is seeking to fine Google and Apple the equivalent of 48 million euros. At issue is the accusation that the companies abused their market dominance and violated the country's mobile payments regulations. Unimpressed, Google parent Alphabet's shares traded 1.9 per cent higher, while Apple gained 1.5 per cent. Levi Strauss fell 0.8 per cent. The jeans retailer's third-quarter profit fell short of anticipation due to weak wholesale demand and an impairment charge related to the acquisition of the Beyond Yoga brand.

The attack by the radical Islamic Palestinian group Hamas on Israel is also dominating the financial markets in East Asia at the start of the new week. While the stock exchanges in Tokyo and Seoul are closed for the holidays and trading in Hong Kong was initially suspended due to a typhoon warning, Shanghai is down 0.7 per cent on the first trading day after the so-called Golden Week holidays. In Shanghai, shares of carmakers and suppliers are among the few winners after the electric car brand Aito published strong new orders. Aito is backed by information and communications technology group Huawei. Shares of Huawei suppliers ShenZhen QiangRui Precision Technology and Shenzhen Increase Technology jump 20 per cent each.

At the end of last week, the Swiss bond market, measured by the Swiss Bond Index, was holding its ground. A total of nine bonds amounting to CHF 1.73 billion were issued during the previous week. Foreign issuers accounted for five securities worth CHF 910 million. Domestic borrowers raised CHF 820 million by issuing four bonds. The lion's share was taken up by the three-tranche bond launched by the Central Mortgage Bond Office (Pfandbriefzentrale) of the cantonal banks worth CHF 570 million. The yield of two-year Confederation bonds was meanwhile quoted at 1.170% and that of ten-year bonds at 1.197%.

Deutsche Bank downgrades Clariant target to CHF 14 (15) - Hold
UBS upgrades Deutsche Telekom target to EUR 26.70 (26.20) - Hold
Deutsche Bank raises Logitech target to CHF 55 (50) - Hold