Ferrari backed its full-year guidance as more car deliveries and customization requests helped the sports-car maker deliver forecasting-beating earnings in the first quarter of the year. The Italian automaker reported net profit of 412 million euros ($466.2 million), up from 352 million euros in the same quarter last year as revenue rose 13% to 1.79 billion euros. It shipped 3,593 vehicles to customers, 33 more than a year earlier. Analysts polled by FactSet had forecast 1.77 billion euros in revenue, while analysts at HSBC had seen shipments at 3,560 units. Chief Executive Benedetto Vigna said its strategy of focusing on the quality of revenue rather than volumes was paying off. “Another year is off to a great start,” he said. “All key metrics recorded double-digit growth, underscoring a strong profitability driven by our product mix and continued demand for personalizations.” The company said the Ferrari Roma Spider, 296 GTS, SF90 XX family and the Purosangue led deliveries in the quarter, while the first deliveries of 12Cilindri Spider started and the 12Cilindri continued its ramp-up phase.

The Switzerland market closed slightly weak after a choppy ride on Tuesday as investors mostly stayed cautious, looking for fresh triggers. The Federal Reserve and the Bank of England are scheduled to announce their rate decisions on Wednesday and Thursday, respectively. Investors also closely followed the developments on the trade front, and continued to react to earnings updates. The benchmark SMI ended down 2.45 points or 0.02% at 12,230.58. The index touched a low of 12,168.14 and a high of 12,271.14 intraday. Kuehne + Nagel and Straumann Holding closed lower by about 2.1% and 2%, respectively. ABB, Logitech International, Alcon and Sonova drifted down 1.2 to 1.6%. Lonza Group, Sika, VAT Group, Geberit and Julius Baer also closed weak. Lindt & Spruengli advanced 1.3%, while Swisscom, Nestle, Swiss Re, Swatch Group, Swiss Life Holding and SGS gained 0.5 to 1%. Tech stock Oerlikon soared more than 18% after agreeing to sell its manmade fibers textile machinery business Barmag to textile machinery company Rieter for an upfront equity purchase price of 713 million francs. In economic news, data from the State Secretariat for Economic Affairs showed the Swiss unemployment rate edged down to a non-seasonally adjusted 2.8% in April, the lowest in fourth month, from 2.9% in each of the previous two months.

Europe
European stocks closed broadly lower on Tuesday with investors largely staying cautious, following political and geopolitical developments, digesting economic and earnings updates, and awaiting the monetary policy announcements from the Federal Reserve and the Bank of England, due later in the week. The pan European Stoxx 600 closed down 0.18%. The U.K.'s FTSE 100 edged up 0.01%, Germany's DAX and France's CAC 40 ended lower by 0.41% and 0.4%, respectively. Switzerland's SMI edged down 0.02%. Among other markets in Europe, Belgium, Denmark, Finland, Greece, Iceland, Norway, Poland and Sweden closed weak. Czech Republic, Portugal, Russia and Turkiye ended higher, while Austria, Ireland, Netherlands and Spain closed flat. In the UK market, Marks & Spencer closed more than 5% down. Standard Chartered ended lower by about 3.3%. Anglo American closed more than 3% down, afterPeabody notified the company that the issues involving the Moranbah North Mine constituted a Material Adverse Change as per the deal terms. Mondi ended lower by about 2.5%. WPP, Shell, Pearson, Vistry Group, The Sage Group, Melrose Industries, Associated British Foods, Scottish Mortgage and Natwest Group also ended sharply lower. Endeavour Mining, Fresnillo, J. Sainsbury, Entain, British American Tobacco, Admiral Group, Beazley, Frasers Group, Compass Group and JD Sports Fashion gained 2 to 5%. Deliveroo gained nearly 2% after the company agreed to be acquired by US food delivery major DoorDash in a deal valuing the company at 2.9 billion pounds. AstraZeneca ended flat. The company announced that is has received EU approval for Calquence (acalabrutinib) in combination with bendamustine and rituximab. In the German market, Beiersdorf lost more than 4%. Porsche, Infineon and Zalando closed lower by 2.3 to 2.6%. Puma, Adidas, SAP, Siemens, Deutsche Bank and Qiagen also ended notably lower.

United States
After ending Monday's volatile session mostly lower, stocks saw continued weakness during trading on Tuesday. The major averages all moved to the downside on the day, pulling back further off last Friday's one-month closing highs. The major averages finished the day firmly in negative territory. The Dow slumped 389.83 points or 1.0 percent to 40,829.00, the Nasdaq slid 154.58 points or 0.9 percent to 17,689.66 and the S&P 500 fell 43.37 points or 0.8 percent to 5,606.91. Ongoing trade uncertainty continued to weigh on the markets following recent strength, which saw the S&P 500 close higher for nine straight sessions before yesterday's pullback. Biotechnology stocks showed a significant move to the downside on the day, with the NYSE Arca Biotechnology Index plunging by 5.1 percent after ending the Monday's trading at its best closing level in a month.

Asia
The stock markets in East Asia and Australia were mostly slightly up in the middle of the week. Sentiment is supported by hopes that the US and China could soon resolve their tariff dispute. The Chinese Foreign Ministry has confirmed that China's Deputy Prime Minister He Lifeng will travel to Switzerland from 9 to 12 May to meet with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer.

Bonds
In the U.S. bond market, treasuries moved to the upside as the day progressed after showing a lack of direction in morning trading. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.5 basis points to 4.308 percent.

Analysis
HSBC raises Adidas target to EUR 275 (240) – Buy
Deutsche Bank lowers Wacker Chemie target to EUR 74 (96) – Buy
Citi raises Traton target to EUR 28.10 (26.20) – Neutral

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