Logistics specialist Kühne+Nagel posted sharply lower results for the third quarter of 2023, after benefiting from a surge in business caused by the coronavirus pandemic. The Schindellegi-based group did not comment on business trends for the rest of the year. During the period under review, sales fell by 46% to CHF 5.4 billion, according to a press release issued on Wednesday. In terms of profitability, gross profit fell by 23% to CHF 2.08 billion. Operating profit (Ebit) slumped by 52% to 446 million francs. Net profit also halved to CHF 321 million. The conversion rate deteriorated to 21.5%, compared with 34.1% a year earlier. The group indicated that sea freight volumes improved in the third quarter, while air cargo continued to decline.

On Tuesday, the SMI gained 0.4 per cent to 10,377 points. Among the 20 SMI stocks, there were 13 price gainers and seven price losers. A total of 18.17 (previously: 17) million shares were traded. Logitech led the SMI with a significant jump. The shares rose by 10.1 per cent after the manufacturer of computer accessories increased its profit markedly in its second business quarter thanks to cost savings. Moreover, the company set itself more ambitious goals for the current business year. The three heavyweights Nestle (+0.3%), Novartis (+0.7%) and Roche (-0.1%) were mixed. According to analysts, Novartis' business figures for the third quarter contained both light and shade. While the pharmaceutical group raised its forecasts for 2023, it is now broadly in line with consensus, UBS noted. The business figures of Sandoz (-6.7%), the generics manufacturer recently spun off from Novartis, were clearly negatively received. Kühne + Nagel closed 0.1 per cent higher.

European stock markets ended Tuesday on a positive note, with investors hoping that the European Central Bank (ECB) will adopt a less restrictive stance following a sharper-than-expected contraction of the eurozone's private sector activity during October. The Stoxx Europe 600 index closed up 0.4% at 435.09 points. In Paris, the CAC 40 and the SBF 120 each gained 0.6%, to 6,893.65 and 5,222.15 points respectively. The DAX 40 advanced by 0.5% to 14,879.94 points in Frankfurt, while the FTSE 100 in London added 0.2%. Veterinary laboratory Virbac (+11.2%) raised its targets for the 2023 financial year, due to the pick-up in business during the third quarter and "a higher-than-expected margin on production overheads". Luxury goods group Hermès (+2.8%) confirmed its medium-term outlook and expressed confidence for the end of 2023, after seeing its sales rise in the third quarter. Interparfums (-6.1%) reiterated its sales target for 2023 following sales increase in the third quarter. However, the licensed fragrance manufacturer remained cautious for the coming quarters. British bank Barclays (-7.3% in London) lowered its net interest margin forecast for its UK operations in 2023 and indicated that it was exploring cost-cutting measures that could result in significant charges being booked in the fourth quarter.

U.S. stocks ended higher Tuesday afternoon, helped by several blue-chip companies reporting stronger results than expected and by earnings reports due from Alphabet and Microsoft after the close. The Dow Jones Industrial Average DJIA rose 204.97 points or 0.6% to close at 33141.38, snapping a four-day losing streak. The S&P 500 SPX gained 30.64 points or 0.7% to end at 4247.68, snapping a five-day losing streak, its longest so far this year. The Nasdaq Composite COMP climbed 121.55 points or 0.9% to finish at 13139.87. General Motors Co. GM shares closed 2.3% lower on Tuesday. The carmaker blew past earnings estimates for the third quarter. General Electric Co. GE rose 6.5% Tuesday, after the company posted better-than-expected third-quarter earnings and raised its guidance. Coca-Cola Co. KO climbed 2.9% Tuesday, after the beverage giant beat third-quarter profit expectations and provided an upbeat outlook, as unit case volume returned to growth. Verizon Communications Inc. VZ upped its free-cash-flow expectations for the year, and shares of the telecommunications company ended up 9.3% Tuesday. Halliburton Co. HAL fell 3.4% Tuesday, posting a three-day losing streak, after the oil services company topped third-quarter profit expectations but came up a bit short on revenue, amid weakness in North America. 3M Co. MMM bounced 5.3% Tuesday, after the consumer, industrial and health care-products company swung to a third-quarter loss due to $4.2 billion settlement of Combat Arms earplugs litigation, but reported adjusted profit that was well above expectations and raised its full-year outlook.

Asian stocks were mixed on Wednesday. Stimulus programmes by the Chinese government are boosting stock prices in Shanghai and especially in Hong Kong. The Hang Seng Index is currently up 1.2 per cent. The Shanghai Composite adds 0.5 per cent. The Nikkei-225 in Tokyo climbs 1.0 per cent. The Kospi in Seoul, however, loses 0.8 per cent. One trader explained the main focus here was on the reporting season. Shares of battery manufacturer LG Energy Solution fell 6.4 per cent ahead of its upcoming third-quarter results. Shares of steel producer Posco and battery subsidiary Posco Future M are down 5.1 and 8.0 per cent, respectively, after third-quarter figures fell short of expectations.

U.S. government debt yields finished mixed on Tuesday as traders weighed U.S. economic strength against the potential for a mid-November government shutdown and the lack of a ground invasion by Israel of Gaza. The 10-year Treasury note yield eased slightly by 2 basis points to 4.821%. On Monday, it had briefly breached the 5% mark for the first time in 16 years. The 2-year Treasury note yield gained 4 basis points to 5.099%, after losing more than 5 basis points the previous day.

Rating Swissquote: Berenberg starts with Buy - Target 217 CHF
Richemont price target: Jefferies downgrades to CHF 130 (140) - Buy
Berenberg lowers Sika target to CHF 250 (310) - Buy

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