Building materials giant Holcim suffered from currency effects, yet profitability soared in the first six months of 2025, the first publication of its financial results without its autonomous North American operations in June. Between January and June, the Zug-based group saw its net sales decline by 2.2% to 7.87 billion francs. Excluding currency effects, sales increased by 1.8%, Holcim announced in a press release on Thursday. Recurring operating income (EBIT), however, increased by 3% to 1.44 billion francs, and the operating margin improved by 0.9 percentage points to 18.3%. The group's net profit, for its part, jumped by 35.2% to 908 million francs. For the current year, Holcim expects sales growth of between 3% and 5% excluding currency effects. Recurring EBIT is forecast to grow between 6% and 10%, with a margin deemed to exceed 18%. Free cash flow is estimated to be around CHF 2 billion. At the end of June, Holcim spun off its North American operations, which are now grouped under the Amrize banner.

SMI lost 0.2 per cent to 11,932 points. Of the 21 SMI stocks, 13 lost ground and 8 gained. A total of 25.43 (previously: 20.94) million shares were traded. Banking giant UBS more than doubled its profit in the second quarter and also exceeded expectations. The market responded with a 1.1 per cent rise in the share price. The reaction to new figures at Logitech was negative. The share closed 1 per cent weaker. The manufacturer of computer peripherals increased its sales and profits by 5 and 6 per cent respectively in the reporting quarter and expects largely stable development for the current quarter. Givaudan fell by 1.5 per cent in the wake of a very weak Symrise share. The German competitor had downgraded its growth expectations. Sonova was the worst performer in the SMI. The audio technology company's shares plummeted 3.6 per cent without any news. Nestlé shed 1.3 per cent, in contrast to its competitor Danone, scoring strong financial results.

Europe
The Stoxx Europe 600 index ended flat at 550.2 points. In Paris, the CAC 40 gained 0.1% and the SBF 120 was stable at the close. The DAX 40 picked up 0.2% in Frankfurt, while the FTSE 100 in London ended the session unchanged. DANONE (+7.4%): the food group published ‘quality’ results for the second quarter, according to RBC Capital Markets. 'Danone is accomplishing what consumer goods companies have done before, reporting slightly better-than-expected results and confirming its full-year guidance,' the financial intermediary added. EXOSENS (+9.1%): the manufacturer of high-tech sensors for the defence and nuclear industries reported a sharp rise in sales and net profit for the first half of the year, driven in particular by its ‘defence & surveillance’ activities. HERMES (-4.5%): the luxury goods group confirmed its medium-term outlook on Wednesday but warned that the recovery in consumer spending in China had not yet materialised. L'OREAL (+4%): the world leader in cosmetics expressed confidence on Tuesday in its outlook for the current year, after seeing its sales in China return to growth in the second quarter, while slowing in Europe. NEXANS (+7.9%): on Wednesday, the cable manufacturer raised its targets for 2025, having posted higher half-year results that exceeded analysts' expectations.

United States
U.S. stocks edged lower Wednesday after Federal Reserve Chair Jerome Powell signalled that a September interest-rate cut was far from guaranteed, disappointing investors who have been hoping for a harder shift toward easier monetary policy. The Dow Jones Industrial Average gave up 0.4%, the S&P 500 slipped 0.1%, while the tech-heavy Nasdaq composite eked out a 0.1% gain. Declines were broad-based, with eight out of the 11 S&P 500 sectors ending the day in the red. It was the third straight day of declines for the Dow, and the second straight drop for the S&P 500. New data showed the economy grew at a 3% clip in April through June, rebounding after shrinking in the first quarter. That number, though, was distorted by trade swings. Stripping out more volatile government, inventory and international trade data, final sales to private domestic purchasers rose just 1.2%, down from 1.9% in the prior quarter. The data also showed that inflation pressures were a little firmer than expected in the second quarter. That caused investors to slightly dial back bets on rate cuts even before Powell’s comments later in the day. Stocks have climbed steadily in recent months while the U.S. economy has continued to chug along, once again defying fears that a recession was imminent. Despite a large increase in U.S. tariffs, investors have been pleased to see the Trump administration strike deals with major trading partners, including Japan and the European Union. Investors are hopeful that those agreements will at least reduce uncertainty about global trade policies. Many have also been optimistic that rate cuts in the fall would offset any emerging weakness in the economy. The threat of new tariffs has hardly gone away, however. In a social-media post early Wednesday, Trump said goods from India would face 25% tariffs, and the country would also be penalised for buying Russian arms and energy. More broadly, the president said he won’t extend Friday’s deadline for higher tariffs to kick in on countries that haven’t secured deals—a group that includes Canada, Mexico and South Korea. Meanwhile, the corporate-earnings seasons rolled on. Humana shares jumped 12% after the health insurer posted better-than-expected revenue growth. Meta Platforms clearly exceeded expectations in the second quarter. The share price gained 11.5% after hours. Microsoft's cloud computing and massive demand for artificial intelligence fueled another strong quarter for the software giant. The stock rose 8.3% after hours.

Asia
Asian indexes diverged for the Thursday trading session. There is stronger pressure on stocks from China. In Hong Kong, the index falls the most strongly at 1.1 percent. In Shanghai, the index is only 0.7 percent lower. In Taiwan, the index adds 0.3 percent. In South Korea, the Kospi declines by 0.6 percent. US President Trump has imposed tariffs of 15 percent against the country. The Nikkei index climbs by 0.9 percent, making it one of the stronger performers in Asia. The largest price movements in the Nikkei index show companies based on quarterly data. Yamato Holdings jumps almost 11 percent, as the loss was significantly reduced in the first quarter. Panasonic shares plunge 3.8 percent following net result only marginally above the previous year. Sumitomo Metal and Tokyo Electric Power also edge 3 percent lower.

Bonds
Long-dated U.S. government debt yields climbed on Wednesday, led by those on shorter-term notes, which are particularly sensitive to the near-term interest-rate outlook. The 10-year Treasury note yield added 2 basis points to 4.38%. Interest-rate futures showed traders scaling back bets on rate cuts after Chair Powell’s Q&A. The market-implied chances of a cut in September fell to just below 50%, according to CME Group data, from around 65% on Tuesday. Powell’s refusal to signal a September cut came in the face of intense pressure from President Trump, who said just before Wednesday’s decision that he thought the Fed would cut rates in the fall. “I hear they are going to do it in September,” Trump told reporters.

Analysis
Sika target price: JPMorgan downgrades to CHF 186 (195) – Underweight
Galderma target price: RBC upgrades to CHF 128 (114) – Sector Perform
SIG target price: Berenberg downgrades to CHF 17 (21) – Buy