On Friday, construction materials company Holcim announced the launch of its share buyback programme next Monday. The Zug-based group is seeking to acquire approximately 58 million shares, or a maximum 10% of its share capital, for a total of CHF 1 billion. The average price per share is CHF 2, according to a press release. Zurich Cantonal Bank (ZKB) was commissioned to carry out the transaction. The deal is due to close on 30 December at the latest.

After the recent record-breaking run that took the SMI to a new high for the year, the Swiss stock market dipped on Thursday. The trigger was the significant drop in Swiss Life shares, slumping by 5.3 per cent after the figures for 2023 and being the SMI's loser of the day. Although the high dividend yield of 5 per cent, among other things, speaks in favour of the share, income in 2023 failed to meet expectations. The SMI declined by 0.6 per cent to 11,721 points. Of the 20 SMI stocks, there were 13 losers and 7 winners. A total of 22.33 (previously: 22.4) million shares were traded. The 3.6 per cent drop in Roche shares was purely of an optical nature. A dividend of 9.60 francs was distributed. In contrast, Logitech shares rose by 1.7 per cent. The analysts at Berenberg started their coverage of the share with a buy recommendation. Swiss Steel shares shed 3.3 per cent following its results for 2023.

Europe
The European stock markets closed slightly lower overall on Thursday, despite setting new record highs during the morning, held back by an unpleasant surprise concerning an inflation indicator in the United States and by a sharp rise in long-term interest rates on both sides of the Atlantic. The Stoxx Europe 600 index fell by 0.2% to 506.4 points. In Paris, the CAC 40 and SBF 120 rose by 0.3% and 0.2% respectively. The DAX 40 shed 0.1% and the FTSE 100 lost 0.4% in London. Atos shares jumped 8.7%, while Syntel, a subsidiary of the troubled digital services group, benefited from a favourable court ruling in the United States concerning its dispute with TriZetto, a subsidiary of the US group Cognizant. Logistics group ID Logistics (up 5.7% at €351) reported higher earnings for the 2023 financial year and favourable growth prospects for the current year. Rail equipment supplier Alstom (+1.3%) announced plans on Thursday to operate a passenger train service in the UK. US cigar manufacturer Altria confirmed on Wednesday plans to sell a €2 billion stake in Belgian brewer Anheuser-Busch InBev (down 4.9% in Brussels) to boost shareholder returns. Car manufacturer BMW (-3% in Frankfurt) posted higher fourth-quarter profits on Thursday, buoyed by sales growth, but results for its main business, the automotive segment, fell short of consensus.

United States
U.S. stocks fell Thursday after another round of inflation data came in hotter than expected. Producer prices rose 0.6% in February from the prior month, more than the 0.3% increase economists had projected. That was after data Tuesday showed consumer prices climbing more than forecast over the past year. The S&P 500 fell 0.3%, leaving it down 0.5% from its record close Tuesday. The Dow Jones Industrial Average lost 0.4%, or about 138 points, while the tech-heavy Nasdaq Composite declined 0.3%. Real estate was the worst performer of the S&P 500’s 11 sectors, falling 1.6%, followed by utilities, with a decline of 0.8%. Shares of real-estate investment trust Public Storage fell 2.8%, and shares of utility PG&E dropped 1.4%. A big day for Microsoft, the largest U.S. company by market value, helped cushion indexes. Microsoft shares gained 2.4% to $425.22, their 15th record close of the year, according to Dow Jones Market Data. The company said Wednesday that its artificial-intelligence product Copilot for Security will be available worldwide next month. The picture for other big tech stocks was mixed, with Apple shares adding 1.1% but Nvidia shares falling 3.2%. Shares of Robinhood Markets advanced 5.2% after the company confirmed trading volumes jumped in February. Under Armour shares slumped 11% after news that founder Kevin Plank is returning as chief executive.

Asia
Stocks in Asia mostly fell in late trading on Friday. While the markets in the Chinese heartland are still fairly stable, Hong Kong is clearly on the decline. The Shanghai Composite lost 0.2 per cent, while the HSI in the Special Administrative Region fell by 2.3 per cent. In Hong Kong, where more international investors are active, declining property prices in China again weighed on the index in February - with increased momentum over the year. In Tokyo, the Nikkei-225 dropped by 0.3 per cent to 38,686 points - weighed down by electronics and technology stocks. The South Korean Kospi shed 1.7 per cent - burdened by semiconductor and battery stocks.

Bonds
A few days ahead of the Fed meeting, investors were cooled by the announcement of an acceleration in U.S. producer prices: the index rose by 0.6% over one month in February, whereas economists were expecting a rise of 0.3%, as in January. As a result, bond yields rose for the fourth consecutive session. The 10-year U.S. Treasury yield jumped by 10 basis points to 4.29%. The 2-year U.S. Treasury yield advanced by 7 basis points to 4.691%. Analysts say yields have climbed this week partly because of concerns that the hot inflation data could lead Fed officials to signal fewer rate cuts this year.

Analysis
Berenberg starts Logitech with Buy and target 98 CHF
Target price Sensirion: JPMorgan lowers to CHF 78 (82) - Neutral
Target price Medacta: UBS raises to 141 (137) CHF - Buy

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