Samsung Electronics expects operating profit to exceed $80 billion for the first time this quarter, continuing its streak of record profits. The world’s largest memory chip manufacturer continues to benefit from the artificial intelligence boom. Operating profit for the three months ending in September is forecast to increase nearly ninefold year-over-year to 107.4 trillion won—equivalent to about $80.18 billion—the company confirmed. The projected profit exceeds Samsung’s previous record of approximately 89 trillion won set in the second quarter and is largely in line with market expectations. A record quarterly revenue is also expected: The company predicts that revenue will more than double to 195 trillion won. However, analysts surveyed by Facset most recently estimated a higher figure of 206.810 trillion won. The stock is down 1.8 percent.

On a gloomy trading day on Wednesday, the Swiss stock market outperformed the rest of Europe by a wide margin. Thanks to the strength of defensive blue-chip stocks, the SMI held its ground and, bucking the European market trend, gained 0.1 percent to 13,808 points. Nestlé, Roche, and Novartis climbed by 0.5 percent, 2.9 percent, and 2.4 percent, respectively. Novartis also announced positive trial data for remibrutinib. In the healthcare sector, Sandoz (+1.1%) was in demand—and Alcon closed slightly higher. Other defensive stocks, such as Swisscom (+2.9%), were also sought after by investors. UBS lost 3.1 percent among European financial stocks—despite a positive comment from Deutsche Bank. Among smaller-cap stocks, Montana Aerospace jumped 3.1 percent; the aerospace specialist had reaffirmed its growth strategy during an investor event in Romania. Following a downgrade by UBS, Polypeptide shed 0.3 percent.

Europa
European stock markets resumed their downward trend on Wednesday amid renewed tensions in the bond market. According to MarketWatch data, the Stoxx Europe 600 index fell 1% to 630.3 points. In Paris, the CAC 40 and the SBF 120 each lost 1.2%. In Frankfurt, the DAX 40 slipped 1.4%, and the FTSE 100 declined by 0.8% in London. REMY COINTREAU (+3%, to 42.70 euros): The spirits group benefited from analyst reports pointing to an acceleration in organic revenue growth in the second quarter of its fiscal year. FORVIA (+2.2%, to 9.70 euros): On Wednesday, Bank of America upgraded its recommendation on the auto parts supplier’s stock from “underperform” to “buy” and raised its price target from 10.50 euros to 14 euros. In addition, the automotive supplier announced Tuesday evening the creation of a joint venture in India with the Anand conglomerate. ORANGE (1.3%): JPMorgan estimates that the telecommunications group is likely to exceed analysts’ expectations when reporting its quarterly results on October 27 and may once again raise its annual targets. With this in mind, the bank has added Orange to its list of stocks with strong short-term potential (“positive catalyst watch”), while slightly raising its price target from 22.50 euros to 22.60 euros.

Stati Uniti
U.S. stocks fell as volatility in Treasury yields sparked concerns about mortgage rates and corporate credit costs. The Dow Jones Industrial Average dropped 341.41 points, 0.66%, to 51179.87. The S&P 500 lost 17.16 points, or 0.22%, to 7801.77, down from a record high. The tech-heavy Nasdaq Composite slipped 61.20 points, or 0.22%, to 27538.69. The Russell 2000 index of small-cap stocks gave up 1.3% to 2793.20 and is roughly 9% below record highs from earlier this year, putting it on the cusp of correction territory. The bond moves are causing pain in the mortgage market. The average fixed 30-year mortgage rate in the U.S. was 7.52%, hovering around three-year highs, according to Bankrate. The SPDR S&P Homebuilders exchange-traded fund, which tracks a basket of builders, declined 2.6% and is now down by more than 8% year to date. Shares of tractor and combine makers fell sharply after the Federal Trade Commission and Agriculture Department launched a probe into potential anticompetitive practices in agricultural equipment markets. Deere DE fell 3.8% to $656.87. Agco AGCO declined 6.1% to $109.15. Caterpillar CAT shed 5.7% to close at $813.83. SPACEX (-2.5%): The aerospace company is in talks with banks and asset management firms to borrow $40 billion, which would be used to purchase NVIDIA chips (-1%), according to the Financial Times. This amount is nearly equivalent to SpaceX’s projected revenue of $44.5 billion for this year, according to the FactSet consensus.

Asia
Stocks in Asia lost further ground on Thursday. In Seoul, the Kospi dropped 1.7 percent ahead of the long holiday weekend. Stock markets in South Korea will be closed on Friday. SK Hynix is down 1.6 percent. LG Energy Solutions’ earnings (+3.6%) are being received positively. In Tokyo, the Nikkei 225 index gave up 1 percent, while the broader Topix index shed 1.2 percent. Japanese investors are primarily selling off shares in machinery manufacturers and trading conglomerates. Komatsu shares tumbled 6.2 percent, and Mitsui shares 2.8 percent. Later on Thursday, retailers Fast Retailing (-0.2%) and Seven & i Holdings (+0.1%) will report earnings. In Shanghai, where trading resumed for the first time after a multi-day holiday break, the Composite Index dipped 0.3 percent. In Hong Kong, the Hang Seng Index declined by 0.7 percent. Shein’s stock soared 6.3 percent.

Obbligazioni
The 2-year U.S. Treasury note yield declined 0.027 percentage point to 4.762%. The 10-year Treasury note yield rose 0.006 percentage point to 5.276%. The yield on the 10-year hit a 24-year high of 5.361% before a well-subscribed auction of the notes. The 30-year Treasury note yield added 0.020 percentage point to 5.660%, on the verge of its highest level since 2002.

Analisi
Berenberg raises VAT Group price target to CHF 695 (640) - Hold
Amrize price target: Research Partners lowers to CHF 46.50 (49) - Buy
Glencore price target: Morgan Stanley upgrades to GBP 7.10 (6.00) - Overweight


Produced by MBI Martin Brückner Infosource GmbH & Co. KG on behalf of Swissquote. All news is acquired with journalistic accuracy. No liability is assumed for delays or errors.