Zurich started 2026 on a growth path. The group saw particular expansion in property and casualty insurance. The company benefited from further rate increases, while initiatives to boost business in specialty insurance and with middle-market clients bore fruit. In the property and casualty segment, Zurich’s insurance revenue increased by 11 percent to $12.0 billion in the months of January through March, as the group announced on Wednesday. Meanwhile, gross premium volume jumped 17 percent to $15.6 billion. On a comparable basis, growth remained at 8 percent. In life insurance, gross premiums grew by 5 percent to $9.85 billion. On a comparable basis, however, there was a 5 percent decline. The present value of premiums from new business dropped 7 percent to $4.71 billion following the strong growth of the previous year. The Zurich Group is not providing profit figures for the first quarter. In terms of profitability, the Group remains well-positioned to meet or even exceed the targets set for 2027. In the current program, which began in 2025 and will conclude in 2027, Zurich aims to achieve a return on equity relative to gross profit of over 23 percent and an annual increase in earnings per share of at least 9 percent.

On Tuesday, the SMI fell 0.1 percent to 13,093 points. The biggest losers in the SMI were Logitech (-5.3%) and Swiss Re (-3.5%). In Logitech’s case, market participants cited profit-taking. Swiss Re, meanwhile, reportedly came under pressure in the wake of Munich Re. The SMI was supported by index heavyweight Nestlé, which had been battered on Monday but saw its share price rise by 1.6 percent. Novartis and Roche also outperformed the market, gaining 1.9 percent and 0.7 percent, respectively. At an investor conference in London, Roche CEO Thomas Schinecker had forecast further revenue growth for the group’s pharmaceutical portfolio through the end of the decade. He attributed this to drugs already on the market, as well as upcoming new launches. In September, Roche had still expected pharmaceutical growth through 2028 and stagnation in the years thereafter. On the day of their respective annual shareholder meetings, smaller caps saw Docmorris (-1.6%) decline and Swatch (+2.7%) rise. Softwareone’s financial results were also well received, with its shares gaining 9.3 percent.

Europe
European stock markets closed sharply lower on Tuesday. The Stoxx Europe 600 index fell 1.1% to 606.34 points. In Paris, the CAC 40 dropped 1% to 7,979.92 points, as did the SBF 120, which closed at 6,070.45 points. In Frankfurt, the DAX 40 fell 1.5%, while the FTSE 100 limited its decline to 0.2% in London. TOTALENERGIE (+1.8%): The oil group posted the best performance on the CAC 40 on Tuesday, buoyed by the latest rise in oil prices. PLUXEE (-0.7%): The former Sodexo subsidiary specializing in meal vouchers and gifts announced Monday evening the completion of a €100 million share buyback program. Between October 31, 2025, and May 8, 2026, Pluxee repurchased 8,347,225 of its own shares at an average price of €11.98 per share. REXEL (-1.9%): The electrical equipment distributor confirmed on Tuesday the signing of a definitive agreement to acquire the U.S. company Revere Electrical Supply, a specialist in the industrial automation market. The amount of the proposed transaction was not disclosed. SES (+5.2%): The satellite operator reiterated its outlook for 2026 on Tuesday, as its first-quarter results exceeded analysts’ expectations. Its competitor EUTELSAT also jumped by more than 3%.

United States
The recent record-breaking streak on U.S. stock markets came to a temporary halt on Tuesday. The Dow Jones Industrial Average closed 0.1 percent higher at 49,761 points. However, the S&P 500 lost 0.2 percent, and the Nasdaq Composite fell by 0.7 percent. Both indices had hit new record highs at the start of the week. On the stock market, investors were primarily selling off chip stocks, which had recently risen sharply but managed to reduce their losses as the day progressed. Micron, Seagate, and Western Digital plummeted by as much as 5.3 percent. Intel and AMD declined by 0.4 and 2.3 percent, respectively. Nvidia (+0.6%) fared better than the rest of the sector and even hit a new record high during the session. EBay rejected GameStop’s $56 billion takeover bid, describing the proposal as “neither credible nor attractive.” EBay stock edged up 2.1 percent, while GameStop fell 3.3 percent. Under Armour’s earnings and outlook were met with disappointment. The sporting goods manufacturer’s stock plummeted by nearly 17 percent. Hims & Hers shares slumped by a good 14 percent. The telemedicine platform clearly missed expectations with its quarterly results. Bristol Myers climbed 1.4 percent. The U.S. pharmaceutical company has entered into a strategic partnership and a licensing agreement with the Chinese drug manufacturer Hengrui Pharmaceuticals. The deal could be worth more than $15 billion. The companies announced a collaboration to advance 13 early-stage drug programs. AST SpaceMobile tumbled 12% after the satellite manufacturer posted a wider loss than analysts were expecting for the first quarter. Expectations were high, with shares up 212% over the past year through Monday’s close.

Asia
Asian stocks broadly closed with gains on Wednesday. The Kospi in Seoul is up 2.1 percent. Semiconductor stocks are among the key drivers. Samsung Electronics is up 1.6 percent, while SK Hynix has risen 7.4 percent. In Japan, the Nikkei 225 has climbed 0.8 percent to 63,262 points. The HSI in Hong Kong is up 0.3 percent, and the Shanghai Composite is up 0.1 percent. The Australian S&P/ASX 200 is down 0.5 percent, weighed down by weak financial stocks. Commonwealth Bank of Australia is plunging 10.3 percent following its earnings report. Slot machine manufacturer Aristocrat raised its dividend and increased the size of its share buyback program following a 9.1 percent rise in profits in the first half of the year—its stock price surged 13.3 percent.

Bonds
U.S. government debt yields edged up on Tuesday. The 10-year Treasury note yield added 5 basis points to 4.46%. Inflationary trends in the U.S. intensified in April, driven primarily by higher energy costs resulting from the conflict with Iran. Consumer prices increased by 0.6 percent from the previous month and were 3.8 percent (previous month: 3.3 percent) higher than the same month a year ago. Since the Federal Reserve is aiming for a 2 percent inflation rate, concerns about interest rate hikes are likely to be reignited.

Analysis
Baader raises Bachem target price to CHF 77.90 (73.80) - Reduce
Vontobel lowers Ypsomed target price to CHF 400 (430) - Buy
Vontobel lifts Avolta target price to CHF 47 (45) - Hold

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