Givaudan saw a decline in revenue in the third quarter, according to results published on Tuesday. The Geneva-based group recorded a drop in sales in its Flavors and Wellness division, while sales in the Fragrances and Beauty segment increased. From July to September, Givaudan posted a 1.5% drop in revenue to $1.88 billion, according to a press release. Its Flavors and Wellness division recorded a 4.3% decrease to $911 million, while its Fragrances and Beauty division grew by 1.3% to $968 million. In the third quarter, organic growth was 4.4%. Nevertheless, the group is confident about the rest of the year, estimating that it could well exceed the upper limit of its average sales growth target of 4-5%.

Monday, the SMI closed three points higher at 12,485 points. Of the 20 SMI stocks, twelve posted gains and eight losses. A total of 14.67 (previously: 19.23) million shares were traded. The leading index was held back by heavyweights Nestlé (-0.4%), Novartis (-0.4%) and Roche (-0.03%). Novartis was downgraded from ‘buy’ to ‘hold’ by Intron Health. Roche hardly benefited from the US Food and Drug Administration's approval of a test developed by the pharmaceutical company for the diagnosis of Alzheimer's disease. On the other hand, infrastructure stocks such as ABB (+0.7%), Amrize (+1.2%), Holcim (+1%) and Sika (+1%) were in demand. Convincing economic data from China helped Richemont climb 0.5 per cent. Swatch advanced 1.5 per cent. A cautious outlook pushed small cap laboratory equipment supplier Tecan's shares down 3.6 per cent.

Europa
The European stock markets closed higher on Monday, as investors scrutinised the political situation in France and remained attentive to trade tensions between the United States and China. The Stoxx Europe 600 index gained 0.4% to 566.6 points. In Paris, the CAC 40 and SBF 120 added 0.2% each. In Frankfurt, the DAX 40 climbed 0.6% and the FTSE 100 edged up 0.2%. EXOSENS (+10.5%): Cypriot night vision systems specialist THEON INTERNATIONAL (-2.6% on the Amsterdam Stock Exchange) announced on Saturday that it had reached a definitive agreement to acquire a 9.8% stake in amplification, detection and imaging technologies specialist Exosens from private equity firm HLD. MEDINCELL (+21.1%): the biotech company confirmed on Friday evening that the US Food and Drug Administration (FDA) had approved an extension of the indication for its antipsychotic Uzedy for the treatment of patients with type 1 bipolar disorder. NEXANS (-9.3%): the cable manufacturer informed its board of directors on Monday that it had decided to part company with its CEO, Christopher Guérin, who will be replaced by Julien Hueber. SEMI-CONDUCTORS: Shares in European semiconductor manufacturers rebounded after Donald Trump's more conciliatory comments on China. STMICROELECTRONICS gained 3.1%, SOITEC 3.7%. ASML, ASM INTERNATIONAL and BE SEMICONDUCTOR picked up 3.7%, 2.5% and 1.8% respectively in Amsterdam, while INFINEON increased by 1.8% in Frankfurt.

Stati Uniti
Tech shares led a broad market rebound Monday after comments from President Trump and senior administration officials over the weekend eased fears of a renewed U.S.-China trade war. The Nasdaq and the S&P 500 rose 2.2% and 1.6%, respectively, logging their best day since May. The Dow Jones Industrial Average added 1.3%, or 588 points. On Friday, the S&P 500 and Nasdaq Composite Index notched their worst day since April’s tariff rout after Trump threatened China with a 100% extra tariff and new export controls. The comments sparked a selloff in the year’s hottest big tech stocks, shares of regional banks and trade-sensitive sectors like autos and retail. On Monday, the Russell 2000 index, which tracks smaller companies sensitive to the economy’s health, gained 2.8%, the benchmark’s best day since August. Big tech stocks jumped, lifted by the White House’s dial-down in trade rhetoric and an announcement from OpenAI and Broadcom that the two companies are working together to develop and deploy 10 gigawatts of custom AI chips and computing systems over the next four years. Broadcom shares advanced 9.9%. Also lifting investors’ spirits: JPMorgan Chase said Monday that it would directly invest $10 billion in companies it deems critical to U.S. national security, part of an initiative to help protect the American economy while trade tensions with countries such as China escalate. Trump’s latest trade back-and-forth comes as the U.S. economy shows signs of turmoil. Recent jobs data suggest the labor market is weakening. The continuing government shutdown has also put hundreds of thousands of workers on furlough and sparked mass layoffs. Those worries manifested in a rally in traditional safe-haven assets. Gold futures hit a fresh record of $4,108.60 a troy ounce. And silver futures rose 6.8% Monday to settle at $50.13 a troy ounce, their first record since 1980. Elsewhere, oil futures rose Monday, with the cease-fire between Israel and Hamas keeping a lid on prices.

Asia
Stocks in Asia mostly fell on Tuesday. In Japan, the Nikkei 225 dropped 2.6 per cent to 46,854 points. While the HSI in Hong Kong shed another 0.2 per cent after significant losses the previous day, the Shanghai Composite added 0.2 per cent. The Kospi in South Korea plunged 1.2 per cent after reaching record highs. Samsung Electronics delivered an extremely optimistic outlook for the third quarter. The company expects its highest profits in three years, driven by demand for AI chips. Despite initial gains, the share price slid around 2 per cent, pulling the overall market down.

Obbligazioni
The U.S. bond market was closed for Columbus Day. European bond markets remain cautious: the spread between French and German benchmark bonds remained at 83 basis points on Monday evening, close to its highest level since the start of the year.

Analisi
ABB target price: Kepler Cheuvreux raises to CHF 56.50 (51) – Hold
Straumann rating: Goldman Sachs lowers to Neutral (Buy) – Target CHF 100 (135)
Clariant target price: Bernstein SG downgrades to CHF 8 (9.30) – Market Perform

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