UBS Group has reported an increase in net profit. A surge in investment banking revenue helped boost the group’s revenue and earnings. The Swiss bank announced on Wednesday that net profit for the first quarter amounted to $3.04 billion, compared with $1.69 billion in the same period last year. According to consensus estimates provided by the bank, analysts had expected a net profit of $2.33 billion. UBS emphasized that strong momentum in client business had led to inflows of funds and brisk trading activity. The core Global Wealth Management division attracted $37 billion in net new assets during the quarter. Meanwhile, the integration of Credit Suisse continues to progress. Additional cost savings of approximately $0.8 billion were achieved in the reporting quarter. This brings the total savings since the start of the restructuring to $11.5 billion. The goal is to reduce costs by $13.5 billion by the end of the year compared to 2022.

Having recovered from earlier losses, the Swiss stock market closed Tuesday with little change. The SMI fell 0.1 percent to 13,148 points, down from a low of 13,010 points earlier in the day. Among individual stocks, Novartis was in the spotlight. The pharmaceutical group reported mixed results for the first quarter. The group recorded a 1 percent decline in consolidated revenue in U.S. dollars, “slightly below consensus and our expectations due to generic erosion of three key drugs,” according to Vontobel. Competition from generics dampened results, Novartis reported, but confirmed its full-year forecast. Novartis shares rose 0.6 percent after earlier losses. In contrast, Sandoz shares fell 0.3 percent. SIG Group shares soared 12.8 percent following the first-quarter results. The full-year forecast was maintained. Avolta shares slumped 4.5 percent to 43.80 francs. UBS downgraded the stock to “Neutral” from “Buy” and lowered the price target from 63 to 48 francs.

Europe
European stock markets closed lower overall on Tuesday. The Stoxx Europe 600 index fell 0.4% to 606.58 points. In Paris, the CAC 40 lost 0.5% to 8,104.09 points, and the SBF 120 gave up 0.4% to 6,141.12 points. In Frankfurt, the DAX 40 shed 0.3%, while the FTSE 100 ended with a slight gain of 0.1%. TOTALENERGIES (+1.9%): The oil group posted the best performance on the CAC 40, buoyed by rising crude oil prices. AIR LIQUIDE (-3.2%): The industrial gas specialist confirmed its targets for the current fiscal year on Tuesday, having benefited from strong demand in the United States during the first quarter, partially offset by weak activity in Europe and Asia. M6 (+1.3%): The media group posted an increase in its current operating margin for the first quarter of 2026 on Tuesday and said it expects a sharp rise in viewership in the second quarter, thanks to the exclusive free-to-air broadcast of the World Cup. NEXANS (+8.2%): the cable manufacturer confirmed its 2026 targets on Tuesday, after registering an increase in revenue in the first quarter, driven by strong performance in its electrification business. The group also revealed on Monday evening the acquisition of the U.S.-based Republic Wire in the low-voltage sector for a total amount potentially reaching €723 million, including debt.

United States
AI jitters are back on Wall Street. Shares of Oracle, CoreWeave, SoftBank and other firms tied to OpenAI slumped on Tuesday, with those three all dropping at least 4% after The Wall Street Journal reported that the ChatGPT maker had missed its own targets for revenue and users. Tuesday’s declines weighed on the Nasdaq composite, dragging the tech-heavy index back 0.9% from a record hit the prior session. Tech shares were the biggest decliners in the S&P 500, with the sector falling 1.3%. The Dow Jones Index dipped 0.1 percent to 49,142 points, buoyed by a significant increase in Coca-Cola's stock price. Shares of Oracle lost 4%. CoreWeave, a top cloud-computing partner, fell 5.8%. SoftBank, which has committed more than $60 billion to OpenAI, fell more than 9% in trading in Tokyo—its worst one-day performance since November. Nvidia slid 1.6%, while Broadcom and AMD each dropped more than 3%. Tech companies with less direct ties to OpenAI performed better on Tuesday. Microsoft ticked up 1%, while Apple gained 1.2%. Software firms Adobe, Salesforce and ServiceNow all rose, a sign that the worries haven’t spread to other areas of the market where AI has sparked volatility in recent months. And Tuesday’s declines were relatively narrow. Energy stocks in the S&P 500 gained 1.7%, lifted by Brent crude’s climb to $111.26, its highest close since the U.S.-Iran cease-fire. Consumer staples rose 1%. United Parcel Service (-4%) reported lower profits and revenue in the first quarter. GM shares climbed 1.3 percent following the earnings report. Although the automobile manufacturer lifted its adjusted profit forecast due to lower customs costs, earnings per share declined during the period.

Asia
Asian stocks were mixed on Wednesday. The Tokyo Stock Exchange is closed on Wednesday for a public holiday. In Seoul, the KOSPI is up 0.7 percent. On the Hong Kong stock market, the Hang Seng Index has gained 1.3 percent. In Shanghai, the Composite Index traded 0.4 percent higher. Shares of Hong Kong Exchange and Clearing advanced 1 percent after the exchange operator reported record first-quarter results. Geely Automobile, China’s second-largest electric vehicle manufacturer, reported a decline in profits despite record-high sales and revenue. Its shares edged up 3.5 percent.

Bonds
U.S. government debt yields and the dollar edged higher ahead of the last Fed meeting to have Jerome Powell as chairman. The central bank is expected to keep rates on hold. Inflation remains a concern as the conflict in Iran pushes oil prices higher. The 10-year Treasury note yield added 0.017 percentage point to 4.352%. The 2-year Treasury note yield increased 0.040 p.p to 3.843%.

Analysis
Price target for Barry Callebaut: Berenberg lowers to CHF 1,268 (1,487) – Hold
Rating for Ypsomed: Barclays raises to Overweight (EW) – Target CHF 343 (420)
Price target for Kühne+Nagel: JPMorgan increases to CHF 170 (160) – Underweight

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