Swatch earned more last year thanks to higher sales. Shareholders are to participate in this in the form of a higher dividend. The Swiss watch manufacturer reported a net profit of 869 million Swiss francs for the full year 2023 after 807 million Swiss francs in the previous year. Sales increased by 5.2 percent to 7.89 billion Swiss francs. In the fourth quarter, the Swatch Group recorded sales growth of more than 8 percent in local currencies, it added. A dividend of 1.30 Swiss francs per registered share will be proposed to the Annual General Meeting. Swatch had paid 1.20 Swiss francs per registered share for 2022. The dividend per bearer share is to be increased to 6.50 from 6.00 francs.

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The Swiss stock market ended higher on Monday, in line with the positive trend across the European region, as investors shrugged off concerns about economic slowdown, and focused on upcoming central bank policy meetings.The benchmark SMI ended with a strong gain of 124.83 points or 1.12% at 11,275.35, after scaling a low of 11,198.26 and a high of 11,289.44 intraday. ABB rallied about 3.8% after the company said it has secured a large order for its complete traction chain for the upgrade of 19 locomotives operated by Romania's state-owned railway passenger transport company CFR Calatori in partnership with local contractor Reloc. Lonza Group climbed 3.15%. Sonova and Kuehne & Nagel both gained 2.3%. Swiss Life Holding surged 2.1%. Geberit, Zurich Insurance Group, Alcon, Swiss Re, Roche Holding, UBS Group and Partners Group ended higher by 1.4 to 1.8%, while Richemont, Swisscom and Holcim gained 0.9 to 1.1%. Sandoz gained more than 4% after the company announced a deal to acquire the U.S. biosimilar ranibizumab CIMERLI from Coherus BioSciences, Inc. for an upfront cash purchase payment of $170 million. Temenos Group advanced 3.5%, while Georg Fischer, Straumann Holding, Galenica Sante, Helvetia, VAT Group, Baloise Holding, Schindler Holding, Lindt & Spruengli, Tecan Group and Schindler Ps gained 1.3 to 2.6%.

European stocks closed higher on Monday with investors indulging in some buying ahead of some crucial economic data from the region, and awaiting the European Central Bank's monetary policy announcement due later in the week. The ECB is widely expected to maintain interest rates at their current record-high levels. The bank's statement is in focus for clues about the timing of interest rate cuts. The pan European Stoxx 600 climbed 0.77%. The U.K.'s FTSE 100 gained 0.35%, Germany's DAX ended stronger by 0.77% and France's CAC 40 ended 0.56% up, while Switzerland's SMI advanced 1.12%. Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Greece, Iceland, Netherlands, Portugal, Spain and Sweden ended with sharp to moderate gains. Poland, Russia and Turkiye edged up marginally. Denmark and Norway ended flat. Shares from technology and insurance sectors were among the prominent gainers. In the UK market, Entain, JD Sports Fashion, Auto Trader Group, Barratt Developments, Barclays, and Lloyds Banking Group gained 2 to 4%. Glencore and Endeavour Mining lost 3.3% and 3%, respectively. In the German market, Zalando rallied more than 4%. Fresenius Medical Care climbed nearly 2%. Hannover Rueck, Siemens, Bayer, HeidelbergCement, Daimler Truck Holding, BMW, Infineon, Merck, Siemens Energy, Deutsche Post and Munich RE gained 1 to 1.6%.

Gains in everything from technology heavyweights to Goldman Sachs shares pushed the Dow Jones Industrial Average past 38000 for the first time. The Dow industrials added 0.4% to 38001.81, a record. The S&P 500 added 0.2%, kicking off the week with another high, and the tech-heavy Nasdaq Composite added 0.3%. Shares of small companies in the Russell 2000 outperformed on Monday, jumping around 2% and outpacing peers by a wide margin. Stocks got off to a rocky start this year before staging a sharp rebound that has pushed the S&P 500 to all-time high for the first time in around two years. Investors have been encouraged by the start of earnings season and signs that the economy remains strong. Goldman shares, which jumped 1% on Monday, have been a big contributor to the index since its last milestone. After taking a bearish stance for much of last year, many investors have piled back into the market lately. Trading in call options that would profit if stocks kept rising jumped to one of the highest levels of the past year on Friday, when the S&P 500 reached a record. Such options confer the right to buy shares at a specific price, by a stated date. To some investors, it is a sign that people are piling in, looking to profit from the big gains. iShares U.S. Home Construction ETF jumped around 1.8% to a record. Shares of buy now, pay later company Affirm jumped 5.2%. American depositary receipts in major Chinese companies sold off, echoing the latest declines for markets in Hong Kong and mainland China. Internet stocks Alibaba, Baidu, JD.com and PDD all dropped.

Positive signs dominated the stock markets in East Asia and Australia on Tuesday. The markets in the region are following the US stock markets upwards, which posted new record highs on Monday. The Bank of Japan's interest rate decision is in the spotlight. It has confirmed its ultra-loose monetary policy course. However, many market participants are of the opinion that it will turn away from this in the first few months of this year, as inflation remains above the BoJ's target of 2 per cent, according to reports.

The yield on the 10-year U.S. Treasury note fell to 4.093% Monday. Bond yields fall when prices rise.

Citi lowers Auto1 target to EUR 11.30 (11.40) – Buy
BoA raises Kerry to Neutral (Underperform) – Target EUR 80 (75)
HSBC lowers Remy Cointreau target to EUR 90 (105) – Hold

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