Holcim has posted the best operating result in its history for the third half of the year. Organic growth was also achieved, enabling the construction materials giant to raise its EBIT targets. Sales between July and September totaled CHF 7.34 billion, down 8.8% compared to the same period a year earlier. In organic terms, however - i.e., adjusted for exchange rate and acquisition effects - growth was positive (+4.3%), Holcim stated in a press release on Friday. In operational terms, earnings before interest and taxes (Ebit) increased by 3.2% to CHF 1.60 billion, while the related margin improved by 250 basis points (bp) year-on-year to 21.8%. As a result of this performance, Holcim's management has raised its annual Ebit margin target from over 16% to higher-than-expected 17%. Otherwise, the roadmap remains unchanged.

The Swiss stock market ended Thursday's trading slightly lower. The SMI lost 0.3 per cent to 10,368 points. Among the 20 SMI stocks, there were eleven price losers and nine price winners. A total of 17.61 (previously: 16.26) million shares were traded. However, no clear pattern was discernible. Among the heavyweights, which are considered defensive, only Nestle (+0.3%) posted gains. The shares of the two pharmaceutical companies Novartis and Roche, on the other hand, lost 0.9 and 0.1 per cent. Kühne & Nagel (-0.3%) saw minor follow-up sell-offs. Logitech fell by 2.1 per cent and Ams-Osram by 4.7 per cent. Holcim rose 0.5 per cent. Richemont dropped 2.4 per cent and Swatch 1.3 per cent. Sentiment in the luxury goods sector was gloomy after several companies, most recently Kering, released weak figures.

The main European stock markets closed lower on Thursday, as investors digested the statements by the European Central Bank (ECB) and a series of mixed US indicators. The Stoxx Europe 600 index shed 0.5% to 433.20 points. In Paris, the CAC 40 fell by 0.4% to 6,888.96 points, while the SBF 120 also lost 0.4% to 5,213.15 points. In Frankfurt, the DAX 40 ended down 1.1%, while the FTSE declined by 0.8% in London. As expected, the ECB left its key rates unchanged on Thursday, after ten consecutive hikes. ECB President Christine Lagarde cited the sharp fall in inflation in the eurozone in September, as well as signs of weak demand and tighter credit conditions, as the main factors behind the decision. Retirement home operator Clariane continued to fall (-19.5%) following a 20% plunge. The market is concerned about a capital increase following the group's announcements concerning its level of debt. Plastic Omnium (-22.8%) has lowered part of its financial targets for 2023, due to uncertainties surrounding global automobile production and the economic environment in general. Property developer Nexity (+11.3%) regained some ground on the stock market on Thursday, after presenting a third-quarter trading update with no unpleasant surprises. The share had lost more than 14% on Wednesday. Foodservices and prepaid services group Sodexo (+5.2%) reported higher-than-expected full-year results and targets on Thursday. Carrefour (+4.7%) published third-quarter sales higher-than-expected by analysts. BNP Paribas (-2.6%) posted a 4% fall in third-quarter net profit to €2.66 billion. Net banking income rose by 4% to 11.58 billion euros. In Frankfurt, Mercedes-Benz shed 6.6% after announcing a 7% fall in net profit during the third quarter, due to lower demand and negative exchange rate effects.

A pullback in megacap technology stocks deepened Thursday, dragging the Nasdaq Composite into its worst two-day decline of the year. The tech-heavy index dropped 1.8%, while the S&P 500 shed 1.2%. The Dow Jones Industrial Average declined around 250 points, or 0.8%. Shares of Meta Platforms fell 3.7% after the Facebook parent beat Wall Street expectations in its latest quarterly earnings report, but warned of softer advertising sales in the fourth quarter. Google parent Alphabet’s Class A shares dropped 2.7%. The stock has struggled since the tech titan reported disappointing cloud business growth after the market closed Tuesday. Microsoft lost 3.8% on Thursday, while Apple fell 2.5% and Nvidia shed 3.5%. The hot GDP growth rate renewed questions about whether the Federal Reserve is done with its interest-rate increases. Traders are betting the Fed will almost certainly hold its benchmark rate at current levels in its November policy meeting, but are pricing in a roughly 20% probability that the central bank will raise rates in December, according to CME Group’s federal-funds futures. Quarterly earnings reports also spurred swings elsewhere in the stock market. United Parcel Service shares fell 5.9% after the company cut its sales outlook, citing a slowdown in global demand for shipping. Comcast’s stock slumped 8.4% after the company reported a loss in broadband subscribers. Meanwhile, International Business Machines shares jumped 4.9% after the company’s profit and revenue topped analyst estimates. The real-estate sector was the best-performing segment of the S&P 500, up 2.2%. American Tower rose 8.1%, the top gainer in the sector. The real-estate investment trust reported better-than-expected revenue and named its next CEO. With about 42% of companies in the S&P 500 having reported third-quarter results, some 79% have topped analyst consensus estimates, according to FactSet.

In Asia, major indexes broadly closed with gains on Friday. The recovery is particularly marked in Tokyo, where the Nikkei-225 rises by 1.2 per cent. In China, the Shanghai Composite advanced by 0.4 per cent and the Hang Seng Index rose by 1.0 per cent. Quarterly results dominate the share prices of individual stocks. In Tokyo, Fujitsu shares gained 10.7 per cent after the company exceeded analysts' anticipations with its net profit in the second quarter. In contrast, Takeda Pharmaceutical loses 6.3 per cent. The company posted a loss in the second quarter and lowered its profit outlook for the fiscal year.

U.S. government debt yields slipped on Thursday even after a solid third-quarter GDP report, with many economists clinging to the view that U.S. growth should start to flag. The 10-year Treasury note yield eased by 11 basis points to 4.845%, remaining close to its highest levels for 16 years. The 2-year Treasury note yield gave up 8 basis points to 5.042%, erasing its previous day's increase of around 7 basis points.

Target price Forbo: Julius Baer downgrades to CHF 1000 (1320) - Hold
UBS lowers Symrise target to EUR 111 (114)/Buy - Trader
UBS raises Beiersdorf target to EUR 101 (99)/Sell - Trader

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