GM is the last of the Detroit Three to reach tentative deal, ending the strike. The United Auto Workers campaign against Detroit's three automakers can be described as one thing for the union: a win. The six-week strike ended Monday after General Motors reached a tentative labor deal with the UAW that followed similar pacts with Ford Motor and Chrysler parent Stellantis. That closure is a positive for the carmakers. But it portends difficult times ahead for the Detroit Three with the new pacts expected to push the companies' labor costs higher than initially expected when talks began. "We wholeheartedly believe that our strike squeezed every last dime out of General Motors," UAW President Shawn Fain said in a video posted Monday. Ford executives are already talking about the need to offset the higher expenses in this latest deal. The automaker has said the UAW contract would add $850 to $900 per vehicle in additional costs.

The Switzerland stock market ended on a firm note on Monday after staying positive right through the day's session, thanks to positive global cues, and optimism about corporate earnings. The benchmark SMI ended with a gain of 58.48 points or 0.57% at 10,382.19, after moving in a tight band between 10,351.13 and 10,411.19. Roche Holding climbed about 1.5%. Novartis advanced 1.04%. Zurich Insurance Group, Swiss Re, Swiss Life Holdings, Holcim and Swisscom gained 0.6 to 1%. Givaudan drifted down 1.26%, and Lonza Group ended nearly 1% down. Geberit and Sonova posted modest losses. In the Mid Price Index, Clariant rallied nearly 2.5%. Meyer Burger Tech, Dufry and Galenica Sante gained 1.78%, 1.62% and 1.49%, respectively. VAT Group ended down 2.07%. AMS ended nearly 2% down, and Tecan Group ended lower by 1.23%. Schindler Ps and Schindler Holding ended down 0.72% and 0.63%, respectively. On the economic front, Switzerland's leading KOF economic barometer barely changed at 95.8 in October 2023 from 95.9 in the previous month. The latest reading signaled a below-average development for the 17th straight month, as prospects for Swiss businesses remained pressured by higher borrowing costs.

European stocks closed higher on Monday, with investors reacting positively to a slew of upbeat earnings updates and looking ahead to central bank meetings due this week. Concerns about the conflict in the Middle East continued to weigh on sentiment and limited markets' upside. The Federal Reserve, Bank of Japan and Bank of England all are set to announce their monetary policy decisions this week. The pan European Stoxx 600 climbed 0.36%. The U.K.'s FTSE 100 ended higher by 0.5%, Germany's DAX advanced 0.2% and France's CAC 40 gained 0.44%, while Switzerland's SMI surged 0.57%. Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Norway, Poland, Spain and Sweden ended higher. Portugal, Russia and Turkiye edged up marginally, while Netherlands closed flat. St. James's Place, Pearson, ITV, EasyJet, TUI, Ds Smith, M&G, Smiths, Prudential, Standard Chartered, Auto Trader Group and Imperial Brands gained 2 to 3%. BT and British American Tobacco both gained nearly 2%. Reckitt Benckiser surged higher after launching the first tranche of its share buyback program. Diageo, Associated British Foods, Persimmon, CRH, BAE Systems, Just Eat Takeaway.com, IAG and Lloyds Banking Group also moved up sharply. Ascential soared 26% in London after the information and analytics firm said it would sell its digital commerce and consumer research units for a combined enterprise value of 1.4 billion pounds ($1.70 billion).

Stocks posted solid gains Monday ahead of this week’s central-bank meetings, jobs data and a highly anticipated borrowing announcement from the Treasury Department. Bouncing back from a difficult week when the S&P 500 and Nasdaq Composite entered into corrections—or declines of 10% from their recent peaks - all three major indexes gained more than 1%, powered in large part by a rebound in shares of large technology companies. The Dow Jones Industrial Average led the way, rising 1.6%, or 511 points. The S&P 500 and Nasdaq Composite both advanced 1.2%. Despite the gains, investors remained focused on the U.S. bond market, worried that surging Treasury yields could slow the economy and damp the appeal of riskier assets. Some investors and analysts believe this week could prove pivotal for bonds. Among individual stocks on Monday, McDonald’s rose 1.7% after it reported a larger-than-expected increase in sales in the third quarter, boosted by bigger orders and higher prices. Shares of ON Semiconductor plunged 22% after the maker of intelligent sensing and power services issued a bleak fourth-quarter outlook. Technology stocks had a good day. Alphabet rose 1.9% after disappointing earnings sent it down almost 10% last week. Apple, which was scheduled to release earnings after the market closes on Thursday, gained 1.2%.

The stock markets in East Asia and Australia are running in different directions on Tuesday. While weak domestic purchasing managers' indices pushed the Chinese stock markets into the red, the Tokyo stock market turned positive after the Bank of Japan (BoJ) largely confirmed its monetary policy stance. Earlier, disappointing industrial production and retail sales data weighed on the Japanese stock market. The Nikkei 225 index gained 0.2 per cent. The BoJ left the key interest rate unchanged at minus 0.1 per cent, but the upper limit for the yield on ten-year Japanese government bonds, which was set at 1.0 per cent in July, is to be applied less rigidly in future, but rather as a reference point.

The yield on the benchmark 10-year U.S. Treasury note edged up to 4.875% Monday, from 4.846% Friday. The yield had briefly topped 5% early last week.

Bank of America lowers Safran to EUR 197 (201) – Buy
UBS lowers Standard Chartered to 875 (900) GBp – Buy
UBS lowers Prudential to 1,290 (1,405) GBp – Buy

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