Uber Technologies’ shares rose Tuesday after the company said it had returned to profitability on the back of solid growth in its ride-share and food-delivery businesses last quarter. The company posted a higher-than-expected profit of $1.02 billion in the three months through June, which included a $333 million benefit from its equity investments as well as income from its operations. Analysts had expected it to post a profit of $654 million. Uber shares climbed 11% as the tech-heavy Nasdaq Composite Index rose 1%. Uber posted its first annual profit as a public company last year, a milestone that marked the end of an era in which companies spent big and posted hefty losses in an attempt to grab market share. But the company slipped into a loss in the first three months of this year, as losses from its equity investments and legal settlements hit its bottom line even as its underlying operations stayed profitable.

The Swiss market spent some time in positive territory Tuesday morning after a cautious start, but retreated soon, and save for a brief while in the final hour, spent the day's session in the red, as concerns about global growth outlook and geopolitical tensions continued to weigh on sentiment. Investors also digested Swiss retail sales and unemployment data. The benchmark SMI, which advanced to 11,613.79, dropped to a low of 11,417.16, and eventually ended with a loss of 32.79 points or 0.28% at 11,510.46. Data from the State Secretariat for Economic Affairs (SECO) showed Switzerland's unemployment rate remained stable for the third straight month in July, coming in at 2.3%, the same as in the previous three months. In the corresponding month last year, the jobless rate was 1.9%. Data also showed that the seasonally adjusted jobless rate stood at 2.5% in July, up from 2.4% in June. Swiss retail sales declined 2.2% in June, declining for the second straight month, data from the Federal Statistical Office revealed. Sales were expected to grow 0.5% in June. In May, retail sales fell by 0.2%. SGS ended down 1.74%. Kuehne + Nagel, Schindler Ps, Richemont and Roche GS ended down 1.3 to 1.5%.

Europe
European stocks ended on a mixed note on Tuesday after a volatile session, as investors continued to assess the global economic situation, particularly the current scenario in the U.S., and China, in addition to digesting quarterly earnings updates and following the developments on the geopolitical front. The pan European Stoxx 600 ended up 0.29%. The U.K.'s FTSE 100 advanced 0.23% and Germany's DAX edged down 0.09%, and France's CAC 40 lost 0.27%. Switzerland's SMI ended down 0.28%. Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Netherlands, Norway and Russia ended higher. Iceland, Ireland, Poland, Portugal, Spain, Sweden and Turkiye closed weak. In the UK market, Melrose Industries, Rolls-Royce Holdings and Scottish Mortgage climbed 6.6%, 5.6% and 5%, respectively. JD Sports Fashion, Smith (DS), ICG, Mondi, 3i Group, Centrica, Coca-Cola HBC, Vodafone Group, WPP, Whitbread, Lloyds Banking Group, Barclays and Berkeley Group Holdings gained 1 to 3%. RightMove and Endeavour Mining are down 4.3% and 4%, respectively. Fresnillo, Entain, Burberry Group, Informa, Croda International, Intertek Group, Hikma Pharmaceuticals, GSK, Vistry Group, Howden Joinery, Prudential, Beazley, Convatec Group and Hargreaves Lansdown lost 1 to 3.2%. In the German market, Siemens Energy gained about 3.3%. Rheinmetall, SAP, Continental, Covestro and MTU Aero Engines climbed 1.5 to 2.5%.

United States
U.S. stocks closed higher on Tuesday, recovering well after three successive days of losses, as investors shrugged off fears of a recession and geopolitical concerns, and chose to indulge in some buying at reduced levels. Investors also reacted positively to the latest batch of corporate earnings news. The major averages all closed on a firm note. The Dow ended up 294.39 points or 0.76 percent at 38,997.66. The S&P 500 closed up by $53.70 points or 1.04 percent at 5,240.03, while the Nasdaq settled higher by 166.77 points or 1.03 percent at 16,366.85. In U.S. economic news, the Commerce Department released a report on Tuesday showing the U.S. trade deficit narrowed in the month of June. The Commerce Department said the trade deficit shrank to $73.1 billion in June from a revised $75.0 billion in May. Economists had expected the trade deficit to decrease to $72.4 billion from the $75.1 billion originally reported for the previous month. Caterpillar shares gained 3 percent, after the company's second quarter results exceeded analyst estimates on both the top and bottom lines. CSX Corp shares climbed 2.6 percent on strong second quarter earnings. Nvidia Corporation shares surged nearly 4 percent. Meta Platforms also gained nearly 4 percent. Texas Instruments advanced 3.2 percent. Microsoft, Berkshire Hathway, Eli Lilly & Company, JP Morgan Chase, Mastercard, Costco, Home Depot, Netflix, T-Mobile, Accenture, IBM, GE Aerospace, Verizon, American Express, Walt Disney, Goldman Sachs, Boston Scientific, and Analog Devices gained 1 to 3 percent.

Asia
After a turbulent start to the week, the stock markets in East Asia and Australia are up on Wednesday. On the Japanese stock exchange, the Nikkei index rose by 2.7 per cent after the massive slump of around 12 per cent at the start of the week and the strong recovery of 10 per cent on Tuesday. The Japanese markets are supported by statements from the deputy governor of the Bank of Japan (BOJ), Shinichi Uchida, according to which the country's central bank will not raise interest rates if markets are unstable.

Bonds
In the U.S. bond markets, the yield on the benchmark 10-year U.S. Treasury note ticked higher, snapping a streak of falling yields that had lasted eight trading days. It settled Tuesday at 3.887%, up from 3.783% on Monday.

Analysis
UBS raises Aurubis to Neutral (Sell) – Target EUR 65 (71)
UBS raises the Merck KGaA target to 185 (178) EUR – Buy
Citi raises the LSE target to GBP 113 (108) – Buy

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