Diageo appointed Dave Lewis as its new chief executive, tapping a consumer-industry veteran to revitalize the booze giant as it contends with weaker demand in the U.S. and China. The U.K.-based company behind Johnnie Walker whisky, Guinness beer and Baileys Irish Cream liqueur said Monday that Lewis would take over the position from interim CEO Nik Jhangiani on Jan. 1. Shares in Diageo rose more than 7% in morning trading in London. The stock is still down by more than a quarter since the start of the year. Diageo has been looking for ways to boost growth as it tussles with changing drinking habits and high inflation, which have watered down sales of its spirits. The maker of Don Julio tequila last week slashed its full-year guidance, citing a weaker-than-expected consumer backdrop in the U.S. - its biggest market - and lower white spirit sales in China. “The market faces some headwinds but there are also significant opportunities,” Lewis said. In tapping Lewis for the top job, Diageo turns to an executive with decades of experience in consumer-facing industries. He served as CEO of U.K. supermarket chain Tesco from 2014 to 2020, where he was credited with leading a turnaround.

The Swiss market turned in a fine performance on Monday, in line with markets across the globe, amid hopes the U.S. government shutdown will end soon. The U.S. Senate voted 60-40 to end the longest-running government shutdown, which entered its 40th day on Sunday. The bipartisan legislation, which would fund most federal agencies through January and guarantee back pay for federal employees affected by the closure, would now go to the House of Representatives for consideration. The benchmark SMI closed on a firm note and stayed positive right through the day's trading session. The index ended the session with a gain of 156.85 points or 1.28% at 12,455.20, after touching a high of 12,476.79. Roche Holding climbed nearly 4% after revealing promising late-stage results for its innovative multiple sclerosis drug. Julius Baer gained 3.02%. Logitech International, Galderma Group, Richemont, Swiss Re, Sandoz Group, UBS Group and Holcim gained 1.5 to 2.75%. ABB, Straumann Holding, VAT Group, Partners Group, Swatch Group, Kuehne + Nagel, Geberit and Alcon ended higher by 0.8 to 1.25%. Swisscom, Amrize, Schindler Ps and Lindt & Spruengli gained 0.4 to 0.6%.

Europe
European stocks closed on a strong note on Monday and most of the major markets rebounded from multi-week lows posted in the previous session, as rising prospects of an end to the government shutdown in the U.S., helped underpin sentiment. The mood remained quite bullish today following the United States moving a step closer towards ending the historic government shutdown. The pan European Stoxx 600 gained 1.39%. The U.K.'s FTSE 100 closed up 1.03%, Germany's DAX climbed 1.77% and France's CAC 40 settled with a gain of 1.37%. Switzerland's SMI ended with a gain of 1.28%. Among other markets in Europe, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Norway, Poland, Spain and Sweden closed with sharp to moderate gains. Russia and Turkiye ended weak. In the UK market, Diageo climbed about 5.3% after the company named former Tesco boss Sir Dave Lewis as its new chief executive. Fresnillo rallied 5.4%. Endeavour Mining, Polar Capital Technology Trust, SSE, IAG, Barratt Redrow, Barclays, Burberry Group, Entain, WPP, Ashtead Group, Persimmon, St. James's Place, Lloyds Banking Group, Standard Chartered, 3i Group and Pershing Square Holdings gained 2.3 to 4.5%. Rightmove, Hikma Pharmaceuticals, BT Group, Compass Group and Coca-Cola Europacific Partners closed lower by 1 to 1.8%. In the German market, Commerzbank jumped nearly 7% after Deutsche Bank upgraded the stock's rating to 'buy'. Siemens Energy gained about 4.5% following a rating upgrade by Jeffereis. In the French market, Capgemini, Societe Generale, Kering, LVMH, Safran, Accor and BNP Paribas gained 2.5 to 4.3%. Stellantis, Credit Agricole, Bouygues, Hermes International, Sanofi, Airbus, Renault, Teleperformance and Pernod Ricard also closed with strong gains.

United States
Stocks moved sharply higher during trading on Monday, regaining ground following the considerable weakness seen in the previous week. The major averages all moved to the upside on the day, with the tech-heavy Nasdaq leading the charge. The major averages ended the day just off their highs of the session. The Nasdaq surged 522.64 points or 2.3 percent to 23,527.17, the S&P 500 jumped 103.63 points or 1.5 percent to 6,832.43 and the Dow advanced 381.53 points or 0.8 percent to 47,368.63. The rally on Wall Street came after the Senate voted to advance legislation to end the government shutdown, which recently became the longest in U.S. history. The Senate voted 60-40 in favor of a temporary funding bill, which would also reverse some of the recent mass federal layoffs. Several Democratic Senators broke with party leaders in favor of moving forward with the legislation, as it does call for a vote on the extension of enhanced Obamacare tax credits. Gold stocks moved sharply higher along with the price of the precious metal, with the NYSE Arca Gold Bugs Index spiking by 4.8 percent. Computer hardware, semiconductor and software stocks also saw substantial strength on the day, contributing to the surge by the Nasdaq. Pharmaceutical, oil service and networking stocks also turned in strong performances, while airline stocks showed a notable move to the downside.

Asia
After some strong gains at the start of the week, trading on the stock markets in East Asia and Australia is more subdued on Tuesday. In Tokyo, the weaker yen compared to the previous day provided some support, with the Nikkei 225 rising 0.3 per cent to 51,076 points. In Seoul, the market barometer also rose slightly, by 0.6 per cent. In other markets, however, the trend was barely maintained, with profit-taking also likely to have played a role.

Bonds
In the U.S. bond market, treasuries saw modest weakness after ending the last Friday's trading roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 1.7 basis points to 4.110 percent

Analysis
UBS lowers R&S target to CHF 22.60 (41.50) – Buy
UBS raises Valiant target to CHF 155 (147) – Buy
Berenberg raises Aroundtown target to EUR 4 (3.80) – Hold

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