The next adjustment of the MSCI stock indices also affects some Swiss companies. According to information on the index operator's homepage on Friday, for example, the shares of the banking software manufacturer Temenos will be removed from the MSCI Global Standard. Instead, Belimo will be included in the index at the end of August. Temenos will then be listed in the MSCI Small Cap Index going forward. Cicor's securities, which were previously listed in the MSCI Micro Cap, will also be included in this index. Meanwhile, Reeds are down from the MSCI Small Cap into the MSCI Micro Cap Index. In addition to the relegated Reeds, DocMorris and XLife Sciences will also be added to the Micro Cap Index in the future. Thurgau Cantonal Bank however has to leave this list. The inclusion or exclusion of a stock from an index can have a significant impact on its stock price given there are many index products that contain the securities. In addition, numerous larger investors benchmark themselves against corresponding indices. The MSCI index composition is reviewed quarterly.

The SMI lagged well behind the development of the other European stock exchanges on Thursday. The reason was the still unresolved customs dispute between the USA and Switzerland. Switzerland intends to continue negotiating with the US, yet does not expect quick solutions. The 39 percent tariff, which came into force on Thursday, is an "extremely difficult situation for the affected sectors, for companies and employees," said Federal President Karin Keller-Sutter. "We cannot say how long the situation will last," said Keller-Sutter. Representatives of Switzerland would continue "intensive talks" with their US colleagues. "In the end, however, it is in the hands of the American president." The SMI added 0.8 percent to 11,850 points. Sandoz gained 11.7 percent following presentable figures. fZurich Insurance slipped slightly into the red at the end of trading and lost 0.1 percent. The insurer however, increased profit in the first half of the year with strong dynamics in all business areas.Swisscom shares lost 0.6 percent according to the results for the first half of the year.

Europe
European stock markets rose on Thursday with investors continuing to assess the impact of tariffs on the economy on both sides of the Atlantic. The Stoxx Europe 600 index gained 0.9%, to 546.1 points. In Paris, the CAC 40 and the SBF 120 took 1% each. The DAX 40 in Frankfurt won 1.1% while the FTSE 100 in London ended the session down 0.7%. ACCOR (+5.4%): the hotel group plans to introduce its subsidiary Ennismore, owner of a network of "lifestyle" hotels, to the New York Stock Exchange, Bloomberg reported Wednesday evening. According to sources close to the matter cited by the agency, Accor has begun preliminary discussions with advisors to study the feasibility of this operation, which could value Ennismore at several billion dollars. BOUYGUES (+1.2%): the telecommunications operator Bouygues Telecom, a subsidiary of the diversified group, announced on Wednesday evening that it had been the victim of a cyberattack allowing unauthorised audience access to certain personal data of 6.4 million customer accounts.

United States
The Dow Jones Industrial Average slipped Thursday after President Trump’s sweeping levies kicked in on imports from dozens of countries just after midnight. The blue-chip index slid around 224 points, or 0.5%, to 43968. The S&P 500 slipped 0.1% while the Nasdaq composite added 0.3% to notch a new record. The Dow industrials decline came as U.S. trading partners around the world were lobbying the White House for exemptions to the new tariffs. Swiss President Karin Keller-Sutter said Thursday that her country would continue intensive talks with the U.S. after she left Washington without averting a 39% tariff rate. Many are hoping to score exemptions like the one granted to Apple: Trump said late Wednesday that the iPhone maker and other tech companies could avoid 100% chip tariffs by investing in U.S. manufacturing. Chief Executive Tim Cook had unveiled plans to invest in domestic manufacturing during an event at the White House on Wednesday. Apple shares posted big gains for a second day, rising more than 3%. Tariffs are still causing problems for other American multinationals. Ralph Lauren was among the S&P 500’s worst performers Thursday, sliding 6.5% after the apparel-maker said tariff-related costs would pressure its profit margins this year. Caterpillar’s 2.5% decline dragged the Dow lower after the equipment maker warned about the impact of tariffs earlier in the week. And Crocs shares plunged 29% after the company said it expects to take a $90 million hit from tariffs annually. Trump’s tariffs sent stock markets reeling when they were first unveiled in April, but a series of deals and exemptions has made investors more comfortable with their consequences as the months have rolled on. Meanwhile, strong earnings and the continuing AI boom have boosted the biggest tech companies, powering broad indexes higher. Intel shares tumbled 3% after the president wrote on social media that the chip maker’s CEO is “conflicted” and “must resign.” And Eli Lilly shares plunged 14% after the company reported less-than-stellar results of a new study on an experimental anti-obesity pill that has been expected to become a blockbuster. The initial public offering market stayed hot with the trading debut of space company Firefly Aerospace on Thursday. Shares of the Texas-based company closed at $60.35, up from their IPO price of $45.

Asia
Asian stocks were mixed on Friday. The clear daily winner is Tokyo. The Nikkei-225 jumps by 2.3 percent to 41,986 points. Seoul, however, is down 0.65 percent. In Hong Kong, the stock prices are mostly declining, with the HSI losing 0.7 percent. Shanghai is holding up well. Among individual stocks, Sony in Tokyo gains another 3.8 percent. The stock had performed the previous day due to well-received business figures and outlook. Softbank Group jumps 12.7 percent after very strong quarterly figures, which were fuelled by demand for AI, among other things through its stake in chip manufacturer Arm. Softbank is trading at record levels.

Bonds
U.S. government debt yields edged higher across the curve, following yesterday’s lukewarm 10-year tender. The 10-year Treasury note yield fell in the morning after weekly jobless claims came in slightly higher than economists expected, but climbed back to end the session at 4.24%, according to Tradeweb, after a weak auction of 30-year bonds in the afternoon.

Analysis
Price target U-blox: UBS increased to 105 (92) CHF - Neutral
Price target Glencore: JPMorgan raises to 3.70 (3.60) GBP - Overweight
Price target Oerlikon: Julius Baer downgrades to 3.60 (4.10) CHF - Hold