Insurer Zurich Insurance reaffirmed its 2025-2027 targets on Tuesday ahead of today's investor day. The group highlighted its “solid performance” and a strategy focused on accelerating growth in specialty products, the mid-market, distribution, and agricultural products. In November 2024, Zurich Insurance set new targets for 2025-2027. Over this period, earnings per share are expected to increase by an average of more than 9% per year and return on equity on operating income is expected to reach at least 23%. Operating profit is forecast to exceed $4.2 billion, an increase of 18% compared to the 2023 figure. Gross premiums are set to hit $10 billion by the end of 2027, compared to $7.5 billion in 2023, thanks to better contract terms and conditions. The insurer also aims to improve the profitability of its private client business and boost customer loyalty.

The Swiss stock market closed with moderate losses at the start of the week. The SMI dropped 0.3 percent to 12,598 points. Of the 20 SMI stocks, 16 lost ground and 3 gained, while UBS shares closed unchanged. A total of 16.72 (previously: 23.88) million shares were traded. The Swiss economy contracted in the third quarter of 2025 after extremely high US tariffs came into effect. The shares of the index heavyweights showed a mixed trend. Novartis rose 1.3 percent and Roche gained 0.4 percent. Nestlé, on the other hand, shed 0.5 percent. Luxury goods stocks Richemont (-0.8%) and Swatch (-2.1%) trended weaker. Diplomacy tensions between China and Japan were cited as the reason. In contrast, SIG Group surged 9.3 percent after packaging manufacturer Miko Ketto was named as the new CEO.

Europe
European stock markets closed lower on Monday, with tourism-related stocks particularly affected by renewed tensions between China and Japan. In France, Dassault benefited from a major contract with Ukraine. The Stoxx Europe 600 index fell 0.5% to 571.7 points. In Paris, the CAC 40 and SBF 120 each dropped 0.6%. In Frankfurt, the DAX 40 shed 1.2%, while the FTSE 100 in London lost 0.2%. DASSAULT AVIATION (+4.6%), THALES (+1.9%), AIRBUS (+1.4%), SAFRAN (+0.5%): French defense stocks rallied after Ukrainian President Volodymyr Zelensky and his French counterpart Emmanuel Macron announced a “historic agreement” to strengthen Ukraine's future defense capabilities. The agreement includes the possibility for Kiev to acquire 100 Rafale fighter jets by 2035. ALSTOM (-3.3%): The railway equipment manufacturer confirmed on Monday that it would supply Ukraine with 55 Traxx locomotives worth around €470 million. This contract had already been announced and recorded by the group in its second-quarter orders, although the identity of the customer had not been revealed. TOTALENERGIES (+0.5%): The oil giant announced on Monday that it had signed an agreement to acquire 50% of a power generation platform in Western Europe from the Czech company Energeticky a prumyslovy holding (EPH), which will become a shareholder in the French energy producer.

United States
An intensifying selloff across financial markets Monday ensnared everything from gold to crypto to highflying tech stocks, dragging the Dow Jones Industrial Average to its worst three-day stretch since President Trump’s tariff turmoil in April. The tech-heavy Nasdaq on Monday dropped 0.8%, while the S&P 500 slid 0.9%. The Dow Jones Industrial Average retreated 1.2%, or 557 points. Investors in recent days have dumped assets in the lead-up to key tests for whether the artificial-intelligence boom and economic growth that powered stocks to successive records in 2025 will continue into the new year. Nvidia on Wednesday is set to report earnings in the latest snapshot for chip demand. September jobs data delayed during the government shutdown is due out Thursday. Warren Buffett’s latest bet on a big tech firm wasn’t enough to juice investors’ optimism for other AI names. Berkshire Hathaway’s multibillion-dollar purchase of Alphabet stock, disclosed Friday, sent the Google parent 3.1% higher Monday. Apple shares sank 1.8% after the Omaha, Neb., firm trimmed its stake. At the same time, Nvidia, Meta and Amazon all retreated. So did Advanced Micro Devices, Super Micro Computer and Dell Technologies, a big supplier of AI servers. Oracle and CoreWeave extended their weekslong tumble. While investors pared back some of their AI trades, crypto markets have been thrashed. The price of bitcoin slid to $91,859.13 by 4 p.m. Monday, according to CoinDesk. Coinbase shares skidded 7.1%. Gold, which some analysts say has been trading more like a speculative stock than a safe asset, also pulled back. Front-month futures slipped to $4,068.30 a troy ounce.

Asia
Stocks in Asia mostly fell on Tuesday. The Japanese stock market is trading sharply lower with the Nikkei 225 tumbling 2.9 percent to fall well below the 49,450 level, given weakness across all sectors led by exporters and technology stocks. Market heavyweight SoftBank Group is plummeting 7.2 percent. In the tech space, Tokyo Electron is declining 5.2 percent, Tencent is down 1.6 percent and SK Hynix is losing 3.8 percent. Elsewhere in Asia, South Korea is down 3.15 percent. The Hang Seng shed 1.5%.

Bonds
Long-dated U.S. government debt yields slipped on Monday. Traders have pared back their bets on a cut in December, but futures markets suggest a nearly two-thirds chance of at least one cut by January. The 10-year Treasury note yield settled at 4.132%, down from 4.147% Friday.

Analysis
Sonova target price: Bernstein SG lowers to CHF 278 (294) – Outperform
Barry Callebaut target price: Berenberg raises to CHF 1418 (1200) – Hold
Geberit target price: Julius Bär upgrades to CHF 650 (590) – Hold

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