President Trump said he reached a trade agreement on Sunday with the European Union, avoiding a damaging trade war with the U.S.'s largest trading partner and marking his biggest deal so far in his attempt to remake the global trading system through higher tariffs for U.S. trading partners. Trump said the U.S. would set a baseline tariff of 15% for European goods, including automobiles. He pointed out the EU had agreed as part of the deal to buy $750 billion of energy products from the U.S. and invest an additional $600 billion in the United States.

On Friday, the SMI shed 0.7 per cent to 11,956 points. Of the 21 SMI stocks, 14 lost ground and seven gained. A total of 18.6 (previously: 29.57) million shares were traded. Among individual stocks, Nestlé was sold off again. Following the disappointing business figures released the previous day, several analysts downgraded their price targets for the heavyweight Nestlé share, now plunging 1.1 per cent. Roche, having benefited on Thursday from the pharmaceutical group's convincing figures, saw profit-taking. The drug Elevidys for the treatment of Duchenne muscular dystrophy in children between the ages of three and seven was initially denied EU approval. The share price dropped by 2.2 per cent. Novartis shed 0.7 per cent. Among small caps, SGS (+0.4%) outperformed the market. Jefferies confirmed the goods testing group had presented solid figures for the first half of the year. Galderma (+0.8%) continued to capitalize strong figures unveiled by the skin care specialist on Thursday.

Europe
The European stock markets closed mixed on Friday, as investors continued to react to the ECB's monetary policy announcements and numerous corporate results. The Stoxx Europe 600 index fell by 0.3% to 550 points. In Paris, the CAC 40 and SBF 120 both gained 0.2%, buoyed in particular by the luxury goods sector. The DAX 40 slipped 0.3% in Frankfurt and the FTSE 100 lost 0.2% in London. LVMH (+3.9%): the world's leading luxury goods company (owner of L'Agefi) published lower first-half results on Thursday evening, albeit with an improvement in China in the second quarter. In the same sector, Kering gained 4.4% and Hermès 1.6%. CARREFOUR (+5.5%): the retailer confirmed its targets for the current year on Thursday evening, as the group returned to slight sales growth in France in the first half and cited a ‘more buoyant’ environment in Europe. Carrefour also revealed the sale of its entire Italian business. REMY COINTREAU (+8.1%): the spirits group expressed greater optimism on Friday for its 2025-2026 current operating profit, after revising downwards the maximum total impact of customs tariffs. MICHELIN (-3.4%): the tyre manufacturer published lower first-half revenues and profits on Thursday evening, although reiterating its full-year targets.

United States
The S&P 500 and Nasdaq rose Friday to fresh highs, following a busy week of tariff updates and earnings. The Dow industrials added 208 points, or 0.5%. The S&P 500 climbed 0.4%, while Nasdaq rose 0.2%. The S&P ended the week with its fifth straight record close, its longest such streak in over a year. Trade-deal progress buoyed markets this week. Intel shares slid 8.5% after the chip maker said it would cut 15% of staff. Charter Communications stock plunged 18%—its worst one-day performance on record—after the telecom giant reported slowing growth in mobile lines and missed Wall Street’s earnings expectations. Shares in Ugg and Hoka-maker Deckers Outdoor jumped 11% following a quarterly report that exceeded the analysts’ estimates. Only a few of the newly popular meme stocks kept meme-ing before the weekend arrived. Kohl’s pared back some of its recent gains, finishing the week up 34%, while American Eagle Outfitters continued an 18% weekly run-up fueled in part by a new ad campaign from actress Sydney Sweeney.

Asia
Asian stocks were mixed on Monday. The tariff deal between the US and the EU did not cause euphoria. Local stock markets were also held back by the border conflict between Thailand and Cambodia. The Nikkei 2250 lost 1.0 per cent, weighed down by electronics and banking stocks. In China, the markets are mixed: while the Shanghai Composite fell by 0.2 per cent, the HSI in Hong Kong added 0.4 per cent. There was little movement on the stock markets in Australia and South Korea.

Bonds
Long-dated U.S. government debt yields slipped on Wednesday. The 10-year Treasury note yield sank by 3 basis points to 4.38%, ahead of the Fed meeting and an increased flow of data. Interest rates are expected to remain on hold Wednesday, with much attention to be paid to any indication that a cut is forthcoming. The central bank is widely expected to keep rates on hold next week.

Analysis
UBS upgrades Galderma target to CHF 138 (120) – Neutral
Berenberg downgrades Nestlé target to CHF 83.10 (84.50) – Hold
Vontobel cuts Kühne + Nagel target to CHF 240 (250) – Buy