Chemicals company Sika expects to book a one-off hit of up to 100 million Swiss francs ($124 million) this year from an overhaul of its operations in China and other measures to cut costs in the future. Sika said the measures set out in its “fast forward” program would deliver annual cost savings of 150 million to 200 million Swiss francs from 2028. The package includes an investment of up to 150 million Swiss francs in digital transformation. It will also see Sika book 80 million to 100 million francs in nonrecurring costs this year related to structural adjustments in China and efficiency programs in other markets. Sika confirmed its 2028 strategy and is targeting 3% to 6% of sales growth in local currencies, excluding the market growth element.

SMI index settled slightly up on Thursday after moving in a tight band in somewhat lackluster trade. The index dropped to 12,781.60 in early trades, and after struggling for direction till around mid afternoon, edged up a bit thereafter to eventually settle at 12,831.05 with a small gain of 8.81 points or 0.07%. Partners Group climbed nearly 2%. Julius Baer, Kuehne + Nagel, Swiss Re, Lonza Group and Sonova gained 1 to 1.3%. VAT Group, UBS Group, Holcim, ABB, Galderma Group, Swiss Life Holding and Logitech International ended higher by 0.4 to 1%. Among the losers, Swatch Group ended down by 1.82%. Straumann Holding and Roche Holding closed lower by 1.31% and 1.15%, respectively. Novartis, Lindt & Spruengli and Swisscom settled modestly lower.

Europe
The major European markets closed higher on Thursday amid optimism about an interest rate cut by the Federal Reserve in December. Hopes of a potential Russia - Ukraine peace deal also aided sentiment. CME Group's FedWatch Tool indicates the chances the Fed will lower rates by another quarter point next month have soared to 82.9% from just 30.1% a week ago. However, gains were just marginal in most of the markets in the region as investors, digesting the latest batch of regional and U.S. economic data, stayed a bit cautious after recent sharp gains. The pan European Stoxx 600 gained 0.14%. The U.K.'s FTSE 100 edged up 0.02%, France's CAC 40 crept up 0.04%, and Germany's DAX climbed 0.18%. Switzerland's SMI ended 0.07% up. Among other markets in Europe, Finland, Iceland, Ireland, Norway, Sweden and Turkiye closed on firm note. Austria, Belgium and Denmark eded up marginally. Greece, Netherlands, Poland and Russia closed weak. Czech Republic and Portugal ended slightly down, while Spain closed flat. In the UK market, Persimmon climbed 3.1%. Lloyds Banking Group gained about 3% and Centrica closed up by about 2.85%. Natwest Group, Marks & Spencer, Glencore, St. James's Place, Barclays, Berkeley Group Holdings, Segro, Diageo, Barratt Redrow and Schroders also posted notable gains. Imperial Brands, Burberry Group, Rio Tinto, 3i Group, LondonMetric Property, Antofagasta, BP, Scottish Mortgage and Halma ended lower by 1 to 2.4%. In the German market, Deutsche Boerse gained about 1.8%, buoyed by a rating upgrade by JPMorgan to 'Overweight' from 'Neutral.' The price target has been raised to Euro 292. Infineon, Siemens Energy, Brenntag, Continental, Mercedes-Benz and Siemens Healthineers closed up by 1 to 2.3%. Puma soared 19% amid speculation China's Anta Sports is looking to acquire the company. Bloomberg has cited Li Ning and Asics as other possible suitors for Puma. Commerzbank, RWE, E.ON, Qiagen and Daimler Truck Holding lost 0.8 to 1.4%. In the French market, Pernod Ricard climbed more than 2%. BNP Paribas, TP, Renault, Accor, Stellantis, Unibail Rodamco, Michelin, Edenred and Capgemini gained 0.7 to 1.5%. Hermes International ended down by 1.7%. ArcelorMittal, Kering, Veolia Environment and Engie closed moderately lower. Monthly survey data published jointly by NIQ/GfK and the Nuremberg Institute for Market Decisions showed German consumer confidence is set to improve in December as households showed willingness to buy and save but their economic and income expectations deteriorated. The forward-looking consumer sentiment index improved to -23.2 from -24.1 in the previous month. The indicator was forecast to rise moderately to -23.6. A report from the European Commission showed the Eurozone Economic Sentiment Indicator inched up to 97.0 in November from 96.8 in October, matching market expectations and marking its highest reading since April 2023.

United States
On Wall Street, the markets were closed for Thanksgiving Day on Thursday after closing mostly higher on Wednesday.

Asia
After the Thanksgiving holiday in New York, Asian stock markets are largely unchanged at the end of the week. Most regional indices are more or less treading water. Prices in Seoul are under pressure, with the Kospi falling 1.6 percent. Traders are talking about profit-taking, which began when the Kospi approached the 4,000 mark. Samsung Electronics fell by 2.5 percent.

Bonds
Yields on Japanese government bonds are rising as stronger-than-expected consumer inflation data in Tokyo reinforces expectations of further rate hikes by the Bank of Japan. The yield on the 10-year Japanese government bond rose 2 basis points to 1.815%. U.S. bond market was closed.

Analysis
UBS raises Swatch to CHF 90 (71) – Sell
UBS raises Moncler to EUR 59 (57) – Neutral
JPMorgan raises Enel to EUR 9.70 (8.30) – Overweight

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