Microsoft reported growth in its main cloud-computing business that narrowly missed expectations, causing its stock to drop during after-hours trading in the midst of investor jitters over the outlook for the artificial-intelligence boom. The tech giant’s overall sales and profit growth beat expectations in the latest quarter. But revenue for its Azure cloud business - a central part of its AI operation - rose 29%. That was below the prior quarter’s 31% growth and lagged behind analysts’ expectations it would rise by 30%, according to FactSet. Microsoft’s stock was down 2.8% in after-hours trading, a sign of how sensitive traders are to the slightest sign of weakness in the company’s all-important cloud business, which is at the heart of Chief Executive Satya Nadella’s artificial-intelligence strategy. “There’s a segment of the investing community that is hyper focused on very small changes to the Azure business,” said Brad Reback, an analyst at Stifel Financial. On a call with analysts, Microsoft Chief Financial Officer Amy Hood said Azure growth came in at the low end of the company’s guidance because of soft demand in a few European markets for non-AI services, as well as limits in its AI-related hardware.

The Swiss market shrugged off a mild mid-morning setback and moved higher on Tuesday to eventually end the day's session on a firm note. Investors digested a batch of earnings updates from Swiss companies and looked ahead to some key global economic data, and policy announcements from the Federal Reserve, the Bank of England and the Bank of Japan. The benchmark SMI ended with a gain of 67.12 points or 0.55% at 12,282.02. The index, which edged down to 12,205.57 around mid morning, hit a high of 12,296.35 later on in the session. Sika climbed 2.05%. The chemicals maker backed its annual forecast after reporting a 9.2 percent jump in sales for the first half. SIG Group gained about 2.25%. Swatch Group advanced nearly 2%. Geberit climbed about 1.5%. Swiss Re, Straumann Holding, Zurich Insurance Group and Lindt & Spruengli gained 1 to 1.25%. Holcim, SGS, Nestle, Kuehne + Nagel, Logitech International, Julius Baer and Richemont ended higher by 0.6 to 0.9%. Clariant tumbed 8%. The Swiss chemical company reported a decline in second-quarter earnings on lower prices and trimmed its sales outlook. ams OSRAM AG and Avolta ended lower by 2.1% and 1.6%, respectively. Tecan Group and Temenos Group also closed notably lower. On the economic front, a report from Swiss Economic Institute (KOF) said the KOF economic barometer fell to 101 in July, from 102.7 in June.

Europe
European stocks closed higher on Tuesday with investors digesting some earnings and economic data, and awaiting further data and monetary policy announcements from the Federal Reserve, the Bank of England and the Bank of Japan. Germany's DAX and France's CAC 40 climbed 0.49% and 0.42%, respectively. The U.K.'s FTSE 100 ended down 0.22%, and Switzerland's SMI gained 0.55%. The pan European Stoxx 600 ended flat. Among other markets in Europe, Austria, Belgium, Netherlands, Russia, Spain and Sweden ended higher. Greece, Poland, Portugal and Turkiye closed weak, while Iceland and Norway ended flat. In the UK market, Standard Chartered rallied nearly 6%. The Asia-focused bank announced a $1.5 billion share buyback after delivering stronger-than-expected second-quarter profit. Burberry Group and Weir Group gained 3.7% and 3.63%, respectively. Admiral Group, Beazley, Endeavour Mining, Marks & Spencer, Next, LondonMetric Property, Reckitt Benckiser, Pershing Square Holdings, Melrose Industries, RightMove, Auto Trader Group, Schrodders, Intertek Group, Sainsbury, M&G, WPP and Halma gained 1 to 2.5%. Ocado Group ended 6% down. The online supermarket and technology group is extending the maturity of its debt to fund its growth plans. In the German market, Sartorius climbed 3.7%. Deutsche Bank, MTU Aero Engines, Vonovia, Covestro, Hannover Rueck, Munich RE, Commerzbank, Symrise, Rheinmetall, Allianz, Deutsche Boerse and Deutsche Post gained 1 to 2.1%.

United States
Tech stocks extended their recent slide Tuesday, continuing the stock market’s rotation away from its biggest winners. Investors studied a flood of earnings reports. And they prepared for data and remarks in the coming days that could shed light on some of the biggest issues facing markets: the performance of big tech companies, the thinking of the Federal Reserve and the state of the labor market. The tech-heavy Nasdaq Composite fell 1.3% and the S&P 500 dropped 0.5% as many of the big tech stocks lost ground. Nvidia shares slumped 7%, Microsoft shares retreated 0.9% and Amazon.com shares slipped 0.8%. The Dow Jones Industrial Average, which includes only some of the tech stocks, rose 0.5%, or about 203 points. The Russell 2000 small-cap benchmark added 0.3%, building its lead over indexes that are heavily influenced by big tech. PayPal shares jumped 8.6% after the digital-payments company beat expectations and raised its annual earnings guidance. Stanley Black & Decker shares rallied 10% after the power-tool maker lifted its earnings outlook for the year. Merck shares tumbled 9.8%, by contrast, after the drugmaker lowered its forecast for earnings this year.

Asia
The majority of the East Asian stock markets rose in the middle of the week. In contrast, the Nikkei-225 fell by 0.1 per cent after the Bank of Japan (BoJ) raised interest rates. It has raised its target for the overnight rate to 0.25 per cent, after a range of 0 to 0.1 per cent. The central bank has also decided to reduce its purchases of government bonds, thereby taking a further step towards reducing the massive monetary stimulus. Monthly purchases of Japanese government bonds are to be reduced to 3 trillion yen in the period from January to March 2026, compared to around 6 trillion yen previously.

Bonds
In bond markets, the yield on the benchmark 10-year U.S. Treasury note fell to 4.143%, from 4.176% on Monday. The Fed's interest rate decision will be published today at 20:00 (CEST). A press conference by Fed Chairman Jerome Powell will follow half an hour later.

Analysis
HSBC raises Eni to Buy (Hold) – Target EUR 16.50 (15.50)
Citi lowers Stellantis to Neutral – Target EUR 17
HSBC lowers Infineon target to EUR 44 (50) – Buy

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