Bayer cut its full-year earnings outlook after it posted a third-quarter net loss that significantly missed consensus expectations as a tough agricultural market hit earnings at its crop-science division. The German pharmaceutical and agricultural company said Tuesday that it now expects its 2024 earnings before interest, taxes, depreciation and amortization before special items - a key company metric - at between 10.4 billion to 10.7 billion euros ($11.08 billion-$11.40 billion), previously expected at between 10.7 billion and 11.3 billion euros. The company posted a net loss of 4.18 billion euros in the quarter compared with a loss of 4.57 billion euros in the same quarter the previous year, when it booked impairments related to its agricultural business. Bayer said its net loss for this quarter was weighed down by impairment losses at its crop-science business. Analysts expected a net loss of 579 million euros, according to consensus estimates compiled by Vara Research. Ebitda before special items fell to 1.25 billion euros from 1.685 billion euros, missing analysts' expectations of 1.30 billion euros.

The Swiss market ended on a bright note on Monday after staying firm right through the day's session, amid optimism about strong corporate performance and expectations of further monetary easing by global central banks. The benchmark SMI, which climbed to 11,952.06 around mid-morning, ended the day with a gain of 105.07 points or 0.89% at 11,902.79. Swiss Re climbed 3.55% after UBS raised the stock's rating to 'buy' and the target price to 136 Swiss francs from 106 francs. Sika, Partners Group, UBS Group, Holcim and Givaudan gained 1.5 to 2.1%. Zurich Insurance Group, ABB and Sandoz Group ended higher by 1.2 to 1.35%. Alcon, Roche Holding, Swatch Group, Straumann Holding, Richemon, VAT Group, SGS, Sonova, Adecco and Lonza Group also posted strong gains. Kuehne + Nagel closed down 1.1%. SIG Group lost 0.7% and Julius Baer edged down marginally.

Europe
European stocks closed on a positive note on Monday as investors continued to assess the potential impact of Donald Trump's second term as U.S. President on global financial markets and on the geopolitical front. The pan European Stoxx 600 climbed 1.13%. The U.K.'s FTSE 100 gained 0.65%, Germany's DAX and France's CAC 40 ended higher by 1.21% and 1.2%, respectively, while Switzerland's SMI closed up 0.89%. Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Portugal, Russia, Spain, Sweden and Turkiye closed higher. Iceland and Poland ended on a weak note. Shares of defense companies moved up on expectations of increased defense expenditure in the U.S and other developing countries during Trump's presidency. China-related luxury firms gained after China announced a five-year package totaling 10 trillion yuan ($1.4 trillion) to tackle local government debt problems. In the UK market, Croda International rallied about 5.3% after the company agreed to buy back £1 billion of shares from the government. Natwest Group gained 4% after it agreed to buy back £1 billion of shares from the government. Rolls-Royce Holdings and Sage Group gained 3.4% and 3.2%, respectively. Lloyds Banking Group, ICG, DCC, Scottish Mortgage, Vistry Group, M&G, United Utilities, Airtel Africa, Smith & Nephew, IAG, 3i Group, Entain and Standard Chartered ended higher by 1.8 to 2.75%. In the German market, Continental soared more than 10% buoyed by strong third-quarter core earnings. Rheinmetall, Infineon, Deutsche Bank, HeidelbergCement, Puma, Siemens Energy, Hannover Rueck, Commerzbank and BASF gained 2 to 4.3%.

United States
U.S. stocks closed on a firm note on Monday, lifting the Dow and the S&P 500 to new record highs, even as the Nasdaq settled flat with technology stocks turning in a subdued performance. The Dow, which climbed to 44,486.70, gave up some gains subsequently, but stayed firm right through the day's session to settle at 44,293.13, up 304.14 points or 0.69 percent from previous close. The S&P 500 closed up 5.81 points or 0.1 percent at 6,001.35, after having advanced to a new high at 6,017.31. The Nasdaq, which spent much of the day's session in negative territory, eked out a small gain of 11.99 points or 0.06 percent, settling at 19,298.76. Tesla climbed about 9 percent. Salesforce climbed more than 6 percent. PayPal rallied 4.7 percent. Starbucks closed up 3.2 percent and Airbnb gained 2.7 percent. American Express, Goldman Sachs, United Health, JPMorgan Chase, Walt Disney, Alphabet, Home Depot, Mastercard, Cisco, Visa, Bank of America, Netflix and Nike gained 1 to 2.5 percent. Apple Inc., Analog Devices, Micron Technoloy and Intel closed weak. Moderna dropped about 7 percent. Merck, Boeing, Nvidia, Amazon, Nvidia and Microsoft also ended notably lower. Adnoc Gas, one of the world’s biggest natural-gas producers, targets a jump in earnings by 2029 as it boosts supply to capitalize on growing demand for gas. The Abu Dhabi-owned gas company on Monday outlined a target to increase its earnings before interest, taxes, depreciation and amortization by more than 40% over the next five years.

Asia
The stock markets in East Asia and Australia fell on Tuesday. Although Wall Street provided positive guidance, the recent record rally weakened significantly. The highest losses were recorded on the Hong Kong stock exchange. The Hang Seng Index lost 2.1 per cent after the previous day's heavy losses. On the Chinese mainland, the Shanghai Composite fell by 0.3 per cent.

Bonds
Trading on the U.S. bond market was suspended on Monday due to the Veterans Day holiday. At around 7.30 a.m. on Tuesday, the rate on the ten-year bond rose by 2.8 basis points to 4.338%, while the rate on the two-year bond rose by 4.7 basis points to 4.311%.

Analysis
UBS lowers AMS-Osram target to EUR 13.80 (16) – Buy
UBS lowers Nemetschek to Neutral (Buy) – Target 115 (98) EUR
Barclays lowers Daimler Truck target to EUR 45 (50) per share/Overweight – Trader

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