Shares of CoreWeave (+7.6%) were rising Monday after the cloud-service provider revealed it has a $6.3 billion cloud-computing deal with Nvidia. As part of the agreement, Nvidia is obligated to purchase any unsold cloud-computing capacity through April 13, 2032, if CoreWeave’s data centers aren’t fully utilized by its own customers. Nvidia also supplies graphics processing units, or GPUs, to CoreWeave and owns around 6.6% of the cloud provider’s stock as of June 30. The previously undisclosed deal dates back to April 10, 2023, CoreWeave said in a Securities and Exchange Commission filing. Management deemed it a material agreement, which requires disclosure, after the two companies entered into a new order form last Tuesday. The agreement may quell some of Wall Street’s concerns about CoreWeave’s business model, which relies on capital expenditures to build and equip data centers. This year alone, the company forecast capital expenditures of $20 billion to $23 billion. The heavy upfront spending means plenty of debt, which heightens the potential downsides of unused computing capacity down the line.

The Swiss stock market ended the first trading day of the week with small losses. The SMI shed 0.4 percent to 12,144 points. Of the 21 SMI values, 15 price losers and six winners were juxtaposed. 15.84 (previously: 14.87) million shares were sold. The three index heavyweights Nestlé, Novartis and Roche gave up between 1.2 and 1.6 percent. Givaudan (-0.5%) did not benefit from the upgrading to "hold" from "underperform" by Jefferies. Richemont was the top performer of the SMI. The titles were sought in line with the European luxury goods sector and jumped by 2.7 percent. Swatch improved by 0.8 percent. In an interview with the Neue Zürcher Zeitung, Swatch CEO Nick Hayek reported that Swatch watches still sold well in the USA - despite the price increases reflecting higher US tariffs. The shares of UBS (+2.3%) were also in high demand. Logitech and Partners Group each increased by 1.4 percent.

Europe
European stock markets started on the rise, a week that will be marked by monetary policy announcements from several central banks, first and foremost the US Federal Reserve (Fed). The Stoxx Europe 600 index took 0.4% on Monday, to 557.2 points. In Paris, the CAC 40 and the SBF 120 rose 0.9% each, despite the deterioration of France's credit rating by Fitch. In Frankfurt, the DAX 40 added 0.2%, while the FTSE 100 shed 0.1% to London. KERING (+5.8%): the former boss of Renault, Luca de Meo, officially takes the reins of the luxury group this Monday and is likely to announce changes at the head of its flagship brand, Gucci. THALES (+4.7%) - AIRBUS (+1.6%) - LEONARDO (+3.7% in Milan): the "Airbus of satellites", a project in the making for 20 years aiming to merge the three major European satellite manufacturers, the Franco-German-Spanish Airbus, the French Thales and the Italian Leonardo, would be about to materialise, Le Monde reported Monday. RUBIS (+7%): Bloomberg unveiled Friday evening that the CVC Partners fund and the commodity broker Trafigura were each studying the possibility of making an offer on the oil products distribution group, without having made a decision at this stage. The two companies did not comment to Bloomberg. VIRBAC (-2.8%): the veterinary laboratory reported a deterioration in its adjusted operating margin in the first half, which is mainly due to cyclical factors, according to the group.

United States
U.S. stocks rose Monday, driven by broadening support for technology companies and signs of rapprochement in the economic face-off between the U.S. and China. The S&P closed up 0.5% to 6615.28, a record, and the tech-heavy Nasdaq composite also hit a new high, rising 0.9%, while the Dow Jones Industrial Average climbed 0.1%. Treasury Secretary Scott Bessent said “we have a framework” for a deal over the ownership of Chinese social-media firm TikTok, following a second day of talks in Madrid with China’s top negotiator, Vice Premier He Lifeng. Thawing trade relations mixed with enthusiasm for stocks tied to the boom in artificial intelligence to lift large technology stocks, like Alphabet and Tesla, and lesser known companies, like hard-drive maker Seagate Technology, the top performer on the S&P 500 index Monday. Anticipation of full-throttle construction of data centers pushed up shares of hard-drive manufacturers that supply much of the equipment for the huge server farms. Seagate shares rose 7.7% to a record of $211.12, their biggest one-day gain since April 30. The buying included some companies with more tenuous connections to the AI revolution. Tesla shares jumped 3.6% Monday—trading in positive territory for the year for the first time since January—after Elon Musk disclosed a $1 billion stock purchase. Google-parent Alphabet climbed 4.5%, continuing its rally in the wake of a favourable antitrust ruling earlier this month and pushing its market capitalisation over $3 trillion for the first time.

Asia
Asian stock markets are trading mixed on Tuesday. The Japanese stock market is modestly higher in post-holiday trading on Tuesday with the Nikkei 225 moving above the 44,900 level, driven by gains in automakers and technology stocks partially offset by weakness in financial stocks. In the tech space, Screen Holdings is surging almost 5 percent, Advantest is edging up 0.3 percent and Tokyo Electron is adding almost 2 percent. Elsewhere in Asia, South Korea is up 1.1 percent, while Indonesia and Taiwan are up 0.2 and 0.9 percent, respectively. Singapore and China are down 0.1 percent each. New Zealand and Hong Kong are relatively flat. Malaysia is closed for Malaysia Day.

Bonds
Long-dated U.S. government debt yields slipped on Monday. The yield of the 10-year Treasury note dropped 0.01 percentage point to 4,04% as investors bet the central bank would keep lowering rates in months to come.

Analysis
Swiss Life price target: UBS increases to 805 (680) CHF - Neutral
Price target Galderma: Goldman Sachs upgrades to 160 (140) CHF - Buy
Rating SGS: Research Partners lifts to Buy (Hold) - Target 105 (88) CHF
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