In the third quarter, the logistics group Kuehne+Nagel increased its turnover compared to the same period last year. There was stronger demand for flexible logistics services, not least due to renewed supply chain disruptions, the company explained. Net sales increased by 19 per cent to CHF 6.49 billion and gross profit adjusted for volatile freight rates rose by 5 per cent to CHF 2.19 billion, as the company announced on Wednesday. As a result, the profit figures also improved. Operating profit (EBIT) rose by 2 per cent to 455 million and net profit by 6 per cent to 339 million. The improvements are no surprise. Analysts had expected such results compared to the weak prior-year period after management had expressed confidence in the further course of business in the middle of the year. Nevertheless, expectations were clearly exceeded in terms of sales, while the other key figures were more or less met. As usual, the company is not providing a concrete outlook for the current year.

The Swiss stock market lagged behind the rest of Europe on Tuesday. The SMI lost 0.8 per cent to 12,163 points. Once again, there were only two outperformers: UBS and Richemont both closed marginally higher. The remaining 18 SMI stocks recorded losses. A total of 15.27 million shares were traded (Monday: 14.4 million). Logitech brought up the rear in the SMI leading index with a price drop of 6.5 per cent. The manufacturer of computer accessories achieved robust sales growth in the second quarter and also raised its outlook. However, the figures and forecast were viewed sceptically in trading and described as rather mixed. The higher outlook was said to still be below analysts' expectations in some cases. Two SMI heavyweights, Novartis (-1.6%) and Nestlé (-1.0%), were among the major underperformers. Swiss Re (-1.7%) also came under greater pressure after its German competitor Munich Re experienced a negative share price reaction following its quarterly figures. Geberit (-2.0%) was the second biggest decliner. Lonza (-0.6%) did not benefit from the fact that the specialty chemicals company is expanding its collaboration with an unnamed major pharmaceutical partner. Pierer Mobility experienced a share price debacle in the small caps segment. The share price plummeted by 18.4 per cent. The company has cancelled its forecast for 2024 due to declining demand in the motorbike segment and impairments in the bicycle sector.

Europe
The European stock markets limited their losses on Tuesday, while oil and gold advanced. The International Monetary Fund (IMF) reported a mixed outlook for the global economy. The Stoxx Europe 600 index shed 0.2% to 520.4 points. In Paris, the CAC 40 and SBF 120 ended at breakeven. The DAX 40 in Frankfurt lost 0.2% and the FTSE 100 in London was down 0.1%. Analytical laboratory Eurofins (-11.5%) lowered its sales target for the 2024 financial year, after third-quarter sales fell short of analysts' expectations. Licensed fragrance manufacturer Interparfums (-1%) confirmed its revenue target for the 2024 financial year and revised its operating margin forecast, following a sharp rise in sales in the third quarter thanks in particular to the launch of new Jimmy Choo and Lacoste fragrances. German business software company SAP (+2.1% in Frankfurt) lifted its sales and profit forecasts for the year on Monday evening on the back of strong demand for artificial intelligence. The British banking group HSBC (+0.9% in London) announced on Tuesday that it was simplifying its organisational structure into four main divisions in order to streamline its operations and reduce costs, a few months after its new CEO, Georges Elhedery, took up his post.

United States
On Tuesday, the tech-heavy Nasdaq Composite climbed 0.2% while the Dow Jones Industrial Average and S&P 500 declined less than 0.1%. The indexes pared the morning’s steeper losses as traders pored over a bonanza of quarterly earnings from big companies. They bid up shares of General Motors 9.8% after the automaker’s quarterly results, as well as cigarette-maker Philip Morris International, medical-testing firm Quest Diagnostics and railroad Norfolk Southern, which each added more than 4%. Analysts also pointed to comments from Federal Reserve officials, who largely talked in favour of a moderate pace of interest-rate cuts. Kansas City Fed President Jeff Schmid, for instance, said “a cautious and deliberate course of action seems appropriate.” Car manufacturer GM (+9.8%) published better-than-expected quarterly results on Tuesday and raised its profit forecast for 2024. Telecoms operator Verizon (-5%) reported revenues slightly below expectations in the third quarter despite higher-than-expected subscriber gains. Industrial conglomerate 3M (-2.3% after opening higher) raised its profit forecast for the year on Tuesday, following better-than-expected third-quarter results. Defence group Lockheed Martin (-6.1%) lifted its full-year forecast slightly as its order book reached a new record of $165 billion. Cigarette manufacturer Philip Morris (+10%) significantly exceeded expectations in the last quarter and increased its guidance for this year on the back of higher sales of electronic cigarettes. Steelmaker Nucor (-6.5%) reported a fall in profits and sales in the third quarter, hit by a sharp drop in prices.

Asia
Asian stocks were mixed on Wednesday. In Tokyo, the Nikkei 225 index lost 0.9 per cent to 38,067 points. A new parliament will be elected in Japan this weekend, which is why Japanese investors are acting cautiously. In this rather unfavorable environment, Tokyo Metro achieved a brilliant stock market debut. The shares started 36 per cent above the issue price and increased to 45 per cent over the course of the day. The stock exchange in Hong Kong saw strong gains, with the Hang Seng Index rising by 1.7 per cent. In Shanghai, the Composite Index advanced by 0.8 per cent. Market participants are pointing to the measures recently adopted by Beijing to boost the domestic economy. The successful IPO of China Beverage Resources, the share price of which rose by 14 per cent, also lifted sentiment in Hong Kong. The South Korean stock market climbed as well, with the Kospi rising by 0.8 per cent. LG Electronics published a convincing outlook for 2030 ahead of its financial figures, which helped the share price to advance by 3.5 per cent.

Bonds
U.S. Treasuries are paying higher yields than two months ago, giving fixed-income investors a new, but likely brief opportunity to lock in beefy, low-risk returns. The 10-year Treasury note yield remained stable on Tuesday at 4.210%. The 2-year Treasury note yield likewise stayed flat at 4.041%. According to CME Group's FedWatch tool, the market currently reflects a 91% chance of a 25 basis point (0.25 percentage point) rate cut by the Federal Reserve (Fed) in November.

Analysis
Vontobel upgrades Logitech target to CHF 98 (97) - Buy
UBS raises SAP target to 237 (222) EUR/Buy - Trader
Target price Roche: Kepler Cheuvreux lifts target to CHF 315 (285) – Buy

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