Samsung Electronics (-1.1%) said it expects a 10-fold increase in first-quarter operating profit, fueling hopes of a turnaround in its flagship semiconductor business after four straight quarters of losses. The South Korean technology giant said in a preliminary earnings report Friday that its operating profit is expected to have risen sharply to 6.600 trillion won, equivalent to $4.88 billion, from 640.00 billion won a year earlier. That would be its strongest performance in a year and a half. The estimate surpassed a FactSet-compiled consensus forecast of 5.406 trillion won. Revenue is forecast to increase 11% to 71.000 trillion won, the company said, marginally below the FactSet consensus estimate. Samsung is trying to catch up with rivals SK Hynix and Micron Technology in the race to develop advanced high-bandwidth memory chips, which are essential components for AI and high-performance computing systems. Late last month, Samsung shares rallied after reports that AI chip giant Nvidia was testing the Korean company’s next-generation HBM chips for potential use in its graphics processing units. Samsung declined to comment. Shares reached a three-year intraday high this week and have risen 8.7% in 2024.

The Swiss stock market ended trading on Thursday with gains. Tailwinds came from the pharmaceutical sector. The SMI increased by 0.6 per cent to 11,691 points. Of the 20 SMI stocks, there were 11 gainers and 9 losers. A total of 20.31 (previously: 22.82) million shares were traded. Among the individual stocks, Novartis shares rose sharply by 2.8 per cent. The pharmaceutical giant had confirmed plans to apply for an extension of the marketing authorisation for its prostate cancer drug Pluvicto in the second half of the year. This is to be based on new data from a phase 3 trial. Meanwhile, shares of competitor Roche fell 0.7 per cent. Nestle shares, the third heavyweight, climbed 0.6 per cent after significant losses so far this week. Financial stocks were also in demand among investors. UBS surged by 1.9 per cent and the share of Partners Group advanced by 0.9 per cent. Sika (+1.9 per cent) and Alcon (+1.6 per cent) also recorded significant gains. The day's underperformer was Givaudan. The shares dropped by 2.4 per cent. Following a significant rise in the share price, analysts at Baader Helvea had downgraded the stock from "Add" to "Reduce".

European equities were firmer on Thursday after Jerome Powell offered reassurance on likely rate cuts, driving U.S. markets to snap a two-day losing streak. And data that showed the eurozone's private-sector activity returned to growth last month, also helped lift investor sentiment. The Stoxx Europe 600 index gained 0.2% to 510.8 points. In Paris, the CAC 40 and SBF 120 closed flat. The DAX 40 in Frankfurt added 0.2% and the FTSE 100 rose 0.5% in London. Digital assistance services provider Solutions 30 (-13%) unveiled "disappointing" sales growth forecasts for 2024, according to a Paris-based analyst. Chemicals manufacturer Solvay (+3.8%) benefited from the entry into its capital of US hedge fund Greenlight Capital. Renault shares climbed 3.2% to €49.60, the highest performance within the CAC 40. Building materials producer Saint-Gobain (+1.6%) has reached a definitive agreement to acquire Bailey, a group specialising in metal frameworks in Canada, for 880 million Canadian dollars, or around 600 million euros. Saint-Gobain will "benefit from significant synergies given the strong complementarity with the existing products of its subsidiaries CertainTeed, Kaycan and BPC", commented Oddo BHF on a separate note.

Major stock indexes fell sharply Thursday after Federal Reserve officials suggested interest-rate cuts might not be imminent. Investors had already been skittish this week over economic data suggesting that rate cuts might still be far off, with the S&P 500 dropping the first two days of the week. The benchmark index pulled back again Thursday, dropping 1.2%, while the tech-heavy Nasdaq Composite lost 1.4%. The Dow Jones Industrial Average retreated 1.4%, or about 530 points, falling for a fourth consecutive day. It was the first time in about a month that all three indexes fell at least 1%. Fed officials in March reaffirmed their forecast for three rate cuts this year. But signs of the U.S. economy’s continued strength have some investors worried about the likelihood of those happening. Stocks started the day firmly in the green after weekly jobless claims came in higher than expected. They reversed course by the afternoon, following remarks from Fed officials. Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said in a talk with the publication Pensions & Investments that he had penciled in two rate cuts this year in March. But if inflation continues to move sideways, he said, “that would make me question whether we needed to do those rate cuts at all.” Traders saw all three major U.S. stock indexes head south on Thursday. Richmond Fed President Tom Barkin, meanwhile, told the Home Building Association of Richmond that “it is smart for the Fed to take our time” and that “no one wants inflation to re-emerge,” according to prepared remarks. The losses Thursday were broad-based, with all 11 sectors of the S&P 500 closing lower. In earlier trading, each sector had been higher for the day. Rising oil prices have added to inflation worries. Prices climbed again Thursday, with global benchmark Brent crude gaining 1.45% to $90.65 per barrel, its highest settle since October, as traders worried about geopolitical tensions. Investors will get another reading on the economy Friday when the monthly jobs report is released. Among individual stocks, shares of Lamb Weston plunged 19% after the potato and fries company’s quarterly sales missed expectations. Levi Strauss shares climbed 12% after the jeans maker raised its annual outlook.

Stocks in Asia mostly fell on Friday. In Hong Kong, the Hang Seng Index fell by 0.7 per cent. The stock exchanges in Shanghai and Taiwan are also closed on Friday due to public holidays. The Nikkei 225 index dropped by 1.9 per cent in Tokyo. Toyota declined by 1.5 per cent and Advantest by 4.5 per cent. On the Seoul stock exchange, the Kospi fell by 0.9 per cent. Index heavyweight Samsung Electronics lost around 1 per cent. Although the group published encouraging preliminary figures for the first quarter, this had already been anticipated by the market in recent days. Now profits are being taken, according to traders. Following a profit warning, LG Electronics plunged by a good 2 per cent. Demand for the company's household appliances is only recovering slowly.

Long-dated U.S. government debt yields slipped on Thursday. The 10-year Treasury note yield fell by 4 basis points to 4.313%. The 2-year Treasury note yield dropped by 4 basis points to 4.643%.

Target price Sika: HSBC downgrades to CHF 380 (390) - Buy
Target price Bossard: Berenberg lowers to CHF 257 (295) - Buy
Rating Holcim: HSBC cuts to Hold (Buy) - Target CHF 80 (77)

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