LG Electronics forecast third-quarter operating profit well below market estimates amid lingering business uncertainties, sending shares tumbling, though continued earnings improvement keeps the South Korean consumer-electronics giant on course for a recovery this year. While the performance was softer than expected, LG has continued to expand aggressively into fast-growing businesses in the AI era, such as data-center cooling systems and robotics, while trying to maintain growth in its home-appliance and other core businesses. Operating profit likely climbed 13.5% from a year earlier to 781.80 billion won, equivalent to $584.4 million, for the three months ended September, the company said. Revenue is expected to have risen 8.9% to 23.827 trillion won. Compared with the previous quarter, operating profit likely fell 50.5%, while revenue is projected to have been flat.
Both figures missed market expectations. Analysts were looking for a bigger quarterly profit jump to 1.028 trillion won, according to a FactSet-compiled consensus estimate. Shares fell more than 9% following the preliminary results, paring strong year-to-date gains. The stock has still more than doubled this year as the company expands its push into AI and new businesses.

The Swiss stock market performed well on Tuesday. The SMI advanced 0.6 percent to 13,789 points. The heavyweight Nestlé (+1%) served as a pillar of support for the index. Logitech (+0.6%) benefited from positive trends in the U.S. technology sector. Lonza shares climbed 0.2 percent. The company is expected to tap into a new source of revenue in a few years after Vaxcyte’s experimental pneumonia vaccine performed well in a late-stage clinical trial. Among smaller-cap stocks, Schindler added 0.5 percent. According to a report, Mitsubishi Electric and Fujitec are showing interest in TK Elevator’s European business. Stadler Rail (+2.1%) benefited from strong order intake at its French competitor Alstom.

Europe
European stock markets posted gains on Tuesday. The Stoxx Europe 600 index added 0.5% to 636.63 points. In Frankfurt, the DAX 40 gained 0.8%, and the FTSE 100 rose 0.4% in London. The CAC 40 and the SBF 120 rose 0.4% and 0.5%, respectively, in Paris. APERAM (-5.3%): Shares of the stainless steel manufacturer lost ground on Tuesday morning, as the company adopted a cautious stance in its earnings guidance for the quarter ending in September. FORVIA (+8.7%): The automotive parts supplier jumped sharply on Tuesday on the back of a positive note from Jefferies following a “pre-earnings” conference call ahead of the release of third-quarter revenue, scheduled for November 2. MEDINCELL (+16.05%): The biotech stock surged, driven by the prospect of an imminent green light for the U.S. launch of its olanzapine compound for schizophrenia, developed in partnership with the Israeli pharmaceutical group Teva. SCHNEIDER ELECTRIC (-4.5% to 260.50 euros): On Tuesday, JPMorgan downgraded its recommendation on the electrical equipment manufacturer’s stock from “overweight” to “neutral” and lowered its price target from 345 euros to 310 euros. The brokerage firm justified its decision by citing the announcement of the acquisition of the U.S. engineering software company PTC for an enterprise value of $23.7 billion.

United States
U.S. stocks rose and the broad S&P 500 hit a record high as artificial-intelligence bets regained upward momentum. The Dow Jones Industrial Average rose 253.38 points, or 0.49%, to 51521.28. The S&P 500 gained 44.98 points, or 0.58%, to a new record high of 7818.93. It was the broad gauge's 28th record close in 2026 and the first since August, according to Dow Jones Market Data. The tech-heavy Nasdaq Composite added 122.48 points, or 0.45%, to 27599.79. Constellation Energy shares surged 12% to $300.40 after the independent power producer struck a supply deal with Alphabet's Google in which the tech giant agreed to fund the expansion of nuclear capacity on the PJM electric grid. Constellation rival Vistra soared 11% to $160.50 after the Energy Department confirmed it would give the nuclear energy company a conditional loan commitment of up to $4.2 billion. Among other independent power producers, NRG rose 7% to $103.60. Uber Technologies (UBER): The ride-hailing company has agreed to acquire catering and workplace meals platform ezCater in a deal valued at $2.3 billion. Uber’s stock pared earlier gains, closing down 0.6%. Option Care Health (OPCH): Private-equity firm CD&R and healthcare services provider McKesson are buying the company, which offers infusion therapy and services to patients at home. The deal pushed up Option Care’s stock nearly 33%.

Asia
Stocks in Asia mostly fell on Wednesday. The Shanghai Stock Exchange remains closed on Wednesday due to a holiday. In Hong Kong, the Hang Seng Index is down 0.5 percent. In Tokyo, the Nikkei 225 Index gave up 0.7 percent, while the broader Topix shed 0.5 percent. The KOSPI in Seoul declined by 1.1 percent. In Tokyo, Advantest shares are down 2.3 percent and Kioxia shares about 4 percent. In Seoul, blue-chip stock SK Hynix slipped 1.6 percent, while fellow blue-chip stock Samsung Electronics is holding up well. Semiconductor Manufacturing International shares dipped 1.1 percent in Hong Kong.

Bonds
U.S. government debt yields slipped on Tuesday. The yield on the two-year Treasury declined 0.042 percentage point to 4.789%. The yield on the 10-year Treasury note fell 0.040 percentage point to 5.270%, retreating from a 24-year high. The yield on the 30-year bond ticked down 0.023 percentage point to 5.641%, finishing just off multiyear highs.

Analysis
Sonova Price Target: Barclays raises to 220 (175) CHF - Underweight
Berenberg increases Sika price target to 240 (233) CHF - Buy
AMS Osram Price Target: Barclays raises to 21.50 (20) CHF - Equal Weight


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