Chocolate manufacturer Lindt & Sprüngli increased its net profit in fiscal year 2025. The Zurich-based group hiked its prices to offset higher food raw material costs and declining volumes. From January to the end of December, the net profit of the manufacturer of chocolate bunnies and Lindor balls stood at CHF 727 million, compared with CHF 672 million a year earlier, according to a statement released on Tuesday. Operating profit (EBIT) reached CHF 971 million, up from CHF 884 million. The corresponding margin was 16.4%, up 20 basis points. Sales rose 8.2%, or 12.4% in organic growth, to CHF 5.92 billion last year. Currency effects weighed in at 3.9%, the group had indicated at the beginning of the year. The board of directors will propose to its shareholders an increased dividend of 1,800 francs, up from 1,500 previously. These figures are in line with the consensus forecast by analysts, who had predicted earnings of 721 million, EBIT of 969 million, and a dividend of 1,599 francs. For 2026 and beyond, management continues to anticipate organic sales growth of 6% to 8% and an improvement in the operating margin of 20 to 40 points per year. In addition, the group has announced a new share buyback program worth CHF 1 billion.

The Swiss stock market followed its European counterparts downwards on Monday. The SMI lost 0.7 percent to 13,000 points. Zurich Airport dropped 2 percent, while airport retailer Avolta's shares declined by 3.1 percent. Roche suffered a setback in a study involving an experimental breast cancer therapy. The news that the breast cancer drug Giredestrant had failed to meet the primary endpoint of a late-stage study came as a surprise after two earlier studies for the same drug had shown positive results, according to analyst Stefan Schneider of Vontobel. The share price slipped 2.6 percent. Competitor Novartis, on the other hand, climbed 1.7 percent. Zurich Insurance (-0.04%) is acquiring Generali's Irish property and casualty business for around 337 million euros. Lonza (-1.1%) and Genetix extended their long-term production agreement for Zynteglo. Among small caps, Temenos jumped 3.1 percent. Bank of America had commented positively on the stock and upgraded it to “buy.”

Europe
European stock markets started the week on a negative trend as the war in the Middle East continues and oil prices keep soaring, raising inflation fears. The Stoxx Europe 600 index fell 0.6% on Monday to 594.9 points. In Paris, the CAC 40 and SBF 120 lost 1%. In Frankfurt, the DAX 40 gave up 0.8%, while the FTSE 100 dipped 0.3% in London. ARCELORMITTAL (-3.9% to €46.04), APERAM (-7% to €34.74): On Monday, JPMorgan downgraded its recommendation on ArcelorMittal shares by two notches, from “overweight” to “underweight,” reducing its target price to €40 from €53.50. The investment bank also downgraded its recommendation on Aperam shares from “overweight” to “neutral” and its target price from €45.10 to €40.70. IPSEN (-4.2%): On Monday, the pharmaceutical company voluntarily withdrew its cancer drug Tazverik (tazemetostat) from all markets where it was sold and for all indications. Ipsen explained that the risks associated with using Tazverik could outweigh the potential benefits for patients being treated for follicular lymphoma. AIRBUS (-0.1%): The European aerospace and defense group is considering partnering with RHEINMETALL (+2% in Frankfurt) and OHB (+13.7% in Frankfurt) to deploy at least 100 small satellites in low orbit for the German army by 2029, according to information reported on Saturday by Bloomberg, citing sources close to the matter.

United States
Stocks rallied and oil fell on Monday after CBS News reported that President Trump said the U.S.-Israeli war with Iran was "very far ahead of schedule" and "very complete, pretty much.“ Stocks opened the session lower, but pared declines as the oil slide moderated, then rallied into the close after Trump's latest remarks. The Nasdaq composite led indexes with a gain of 1.4%. The Dow industrials rose rose 0.5 percent to 47,741 points, while the S&P 500 gained 0.8 percent. Oil stocks Chevron (-0.3%) and Exxon Mobil (-0.5%) turned negative as oil prices dropped, after the oil price rally had previously provided support. In contrast, US airline stocks recovered as oil prices eased: United Airlines, Delta Air Lines, American Airlines, and Southwest shares climbed up to 3.6 percent. Hims & Hers shares surged 40.9 percent. Novo Nordisk is partnering with the telemedicine company to distribute its weight loss drugs, ending a legal dispute between the two companies. Live Nation Entertainment surged 6.2 percent on headlines about the settlement of a major legal dispute. Vertiv jumped 9.5 percent. The data center equipment supplier is moving up to the broad-based S&P 500. The same was true for shares in laser specialist Lumentum (+14.7%), satellite provider Echostar (+3.5%), and photonics-based solutions provider Coherent (+7.1%).

Asia
Falling oil prices helped stock markets in East Asia and Australia recover on Tuesday. On the Seoul Stock Exchange, the Kospi jumped 4.6 percent after losing 6 percent on Monday. In Tokyo, the Topix added 2.1 percent. Gains were smaller on Chinese stock exchanges, where performance had been significantly better the previous day. In Shanghai, the Composite Index gained 0.4 percent. The Hang Seng Index in Hong Kong was up 1.7 percent. Shares from sectors that are particularly affected by rising oil prices, including airlines, were in demand. Cathay Pacific climbed 4.4 percent in Hong Kong and Japan Airlines increased 2.1 percent in Tokyo. Korean Air Lines leaped 8.3 percent in Seoul.

Bonds
U.S. government debt yields remained volatile, with the 10-year U.S. Treasury yield pushing above 4.2% before retreating back near 4.1%. Investors in recent days have feared that the energy-price spike could feed inflation and dampen growth, raising the spectre of stagflation.

Analysis
Rating Swatch: HSBC raises to Hold (Reduce) - Target 170 (120) CHF
Target price PSP Swiss Property: Barclays increases to 151 (135) CHF - Equal Weight
Target price Richemont: HSBC downgrades to 190 (220) CHF - Buy

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