Lift and escalator manufacturer Schindler generated slightly less revenue and orders last year, yet earned significantly more. In the new year, Schindler aims to continue growing moderately and become even more profitable. Overall, revenue fell by 2.6 percent to CHF 10.95 billion, as the Central Swiss group announced on Wednesday. Once again, the strong Swiss franc had a negative impact on the result. Foreign currency effects cost CHF 431 million in sales. In local currencies, sales would have grown by 1.3 percent. Adjusted operating profit (EBIT), on the other hand, increased by 8.2 percent to CHF 1.45 billion. The operating margin improved to 13.3 percent from 12.0 percent in the previous year. The figures do not include certain items such as restructuring costs of 54 million and expenses for the Building Minds program of 16 million Swiss francs. The basis for future results has shrunk slightly. Order intake declined by 0.9 percent to CHF 11.31 billion. With these figures, Schindler slightly exceeded analysts' expectations for adjusted EBIT, but otherwise fell just short. In the new 2026 financial year, Schindler expects sales growth in the low to mid single-digit range in local currencies. The EBIT margin is forecast to reach 13 percent.

The wait-and-see attitude on the Swiss stock market continued on Tuesday. The SMI increased by half a point to 13,518 points. The Swiss franc remained strong against the euro, climbing to its highest level since 2015. Among individual stocks, Richemont (+2.2%) and Swatch (+2.4%) shares rallied considerably. Cyclical stocks, which had recently surged, fell back slightly. Holcim shares dipped 1.2 percent and Amrize lost 1.1 percent. The defensive index heavyweights presented a mixed picture. While Novartis and Nestlé shares advanced by 0.7% each, Roche shares shed 0.8%.

Europe
European stock markets were close to equilibrium on Tuesday. The Stoxx Europe 600 index ended virtually unchanged at 620.97 points. In Paris, the CAC 40 and SBF 120 gained 0.1%. In Frankfurt, the DAX 40 fell 0.1% and the FTSE 100 lost 0.3% in London. ARKEMA (+10.8%): Goldman Sachs raised its recommendation for the chemical group from ”neutral” to ”buy” on Tuesday and lifted its target price from €51 to €71. KERING (+10.1%): The luxury goods group reported a sharp decline in results for the past year on Tuesday but expects to return to sales growth in 2026, thanks in particular to the renewal of its flagship Gucci brand. For the full 2025 financial year, Kering's net profit stood at €72 million, compared with €1.13 billion the previous year. Current operating income (COI) fell 33% over the period to €1.63 billion. SANOFI (+2.4%): The French pharmaceutical group announced on Tuesday that it had completed the acquisition of US vaccine manufacturer Dynavax for approximately $2.2 billion in cash.

United States
Broader U.S. benchmarks were mixed on Tuesday. The S&P 500 fell 0.3%, weighed down by a 0.8% drop in the financial sector. The tech-heavy Nasdaq composite fell 0.6%, while the Dow Jones Industrial Average edged up 0.1% to 50188.14 - its third straight record close. The artificial-intelligence scare broadened from technology to financial services Tuesday, dragging wealth-management stocks down in the process. Charles Schwab stock fell 7.4%, while Raymond James finished Tuesday down 8.7%, its worst percentage decrease since March 2020, during the Covid-19 pandemic. Other financial-services providers, including LPL Financial and Stifel were down at least 3%. Banks with large wealth-management businesses also faced pressure, with Bank of America declining 1.8% and Morgan Stanley losing 2.4%. Retail giants Walmart and Target both fell nearly 2%. Earnings season continued Tuesday. Spotify shares surged 15% after the company added a record 38 million monthly users to its audiostreaming platform late last year. Even after the upswing, shares are still off 18% year-to-date. U.S.-traded shares of sports-car maker Ferrari jumped 8.1% after it gave an upbeat forecast for 2026 - the largest percentage increase in more than two years.

Asia
In Asia, major indexes broadly closed with gains on Wednesday. The HSI in Hong Kong is up 0.4 percent, and the Shanghai Composite is up 0.2 percent. In Seoul, the Kospi increased by 1.3 percent, supported by index heavyweight Samsung Electronics. The stock is recovering 1.3 percent after suffering from profit-taking the previous day.

Bonds
U.S. government debt yields, which often fall when investors expect slower economic growth, inched down after government data showed that U.S. retail sales were flat in December, defying forecasts. The 10-year Treasury note yield declined by 6.0 basis points to 4.14 percent. The 2-year Treasury note yield slipped 0.030 p.p. to 3.452%, its lowest since October.

Analysis
Berenberg lowers LEM to CHF 375 (410) – Hold
Kühne+Nagel target price: Citigroup upgrades to CHF 130 (128) – Sell
Berenberg initiates coverage of Cicor with a Buy rating – target price CHF 180

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