Novartis has continued the strong pace of growth seen in recent quarters during the first three months of 2025. Contrary to the expectations of many analysts, the pharmaceutical company has raised its outlook again - for the ninth quarter in a row. Between January and March, Novartis generated sales of USD 13.2 billion. This is an increase of 12 per cent compared to the same period last year, as the Group announced on Tuesday. At constant exchange rates (CER), the growth was 15 per cent. In operational terms, the Basel-based company earned just under USD 4.7 billion (+38%) in the first quarter. The bottom line was a consolidated profit of 3.6 billion after 2.7 billion in the same period of the previous year. According to the press release, the increase was primarily due to the higher operating result. For analysts, however, the core operating profit adjusted for various factors is more important. At 5.6 billion, this was better than expected in the first quarter.

The Swiss stock market presented a favourable picture on Monday. The SMI rose by 0.7 per cent to 12,028 points. Among the 20 SMI stocks, there were 17 winners and two losers. A total of 19.01 (previously: 19.85) million shares were traded. Among the individual stocks, there was a hail of negative analyst comments for Roche. However, the share easily shrugged this off and continued to climb over the course of the day, ultimately closing up 1.2 per cent. Goldman Sachs had slightly reduced its price target for Nestlé (+1.2%), while reiterating its buy recommendation. The food group appointed Jeff Hamilton as head of the Americas business to succeed Steve Presley. UBS (+0.7%) announced plans to improve its service for corporate clients with equity plans in the US. Among small caps, Belimo surged 3.7 per cent following an upgrade by Kepler Cheuvreux. In the wake of the announced merger of Baloise and Helvetia (+0.8%), Baloise reported a strong solvency ratio boosting its share price by 1.2 per cent. Also (+0.6%) continues to expand its cybersecurity platform.

Europe
The European stock markets closed higher on Monday, against a backdrop still dominated by trade uncertainties as a power cut disrupted business across the Iberian peninsula. The Stoxx Europe 600 index gained 0.5% to 523.2 points. In Paris, the CAC 40 and SBF 120 also increased by 0.5%. In Madrid, the IBEX 35 index added 0.8%, while the DAX 40 edged up 0.1% in Frankfurt. In London, the FTSE 100 remained stable. EDENRED (-1.9%)-PLUXEE (-0.8%): the restaurant voucher specialists continued their decline on Monday morning after Friday's fall, amid concerns about their activities in Brazil. AIRBUS (+2.7%): the aircraft manufacturer has signed a definitive agreement to acquire the industrial assets of Spirit AeroSystems, as part of the dismantling of the American aeronautical equipment manufacturer orchestrated by Boeing. VIVENDI (+0.9%): the media and music investment company reported on Monday an increase in its net asset value (NAV) between the end of 2024 and the end of the first quarter of this year. VALNEVA (-6.6%): investors are concerned about the future of the French laboratory's Ixchiq chikungunya vaccine. The vaccine manufacturer announced on Saturday that France's public health authority, the Haute Autorité de Santé (HAS), had decided to suspend the use of Ixchiq in Réunion and Mayotte in people aged 65 and over ‘pending further information’.

United States
The Dow Jones Industrial Average overcame a midday swoon to close higher for a fifth straight session on Monday, extending a relief rally underpinned by optimism that trade deals are in the offing. The blue-chip index ended the day with a gain of 0.3%, or about 114 points. The S&P 500 rose less than 0.1% after wavering between gains and losses throughout the day. Both benchmarks finished with their first five-day winning streak since late 2024. The Nasdaq Composite slipped 0.1%. In the coming days, a large chunk of S&P 500 companies is set to report results from the first three months of 2025. While the quarter ended just before President Trump’s “Liberation Day” tariff announcement on April 2, investors will pay close attention to whatever corporate executives say about both present conditions for their businesses and the road ahead. Four of the Magnificent Seven large-cap tech companies plan to report results this week: Amazon, Apple, Meta Platforms and Microsoft. Apple’s reliance on its Chinese supply chain will be particularly scrutinised. Google parent Alphabet posted strong quarterly earnings last week but warned of coming headwinds from the end of the “de minimis” trade loophole. The exemption for shipping lower-value goods is due to end Friday, which could dent Alphabet’s digital-ad revenue, primarily from Asia-Pacific retailers. Shares of chip maker Nvidia, another Magnificent Seven stock, fell 2.1% on Monday after a report in The Wall Street Journal that China’s Huawei is developing a new artificial-intelligence chip that it hopes could replace some higher-end Nvidia products. Other companies reporting earnings this week include big consumer-facing brands such as Coca-Cola, McDonald’s and Starbucks, as well as carmaker General Motors, credit-card giant Visa and oil majors Chevron and Exxon Mobil. The monthly jobs report for April, due Friday morning, could give a glimpse of how Trump’s trade war is affecting the labor market. The U.S. economy likely added 130,000 jobs, according to economists polled by the Journal, down from the 228,000 that were added in March.

Asia
In Asia, major indexes broadly closed with gains on Tuesday. In Seoul, the Kospi climbed 0.4 per cent after initial losses. Markets in Tokyo are closed due to the Showa holiday in Japan. By contrast, the market barometers on the Chinese stock exchanges in Shanghai and Hong Kong are again little changed. Among the individual stocks, Wuxi Apptec rallied 6.0 per cent in Hong Kong in response to strong quarterly figures. In Seoul, South Korea, Hanwha Ocean slumped by over 11 per cent. The share price was depressed by reports stating the state-owned Korea Development Bank intends to sell part of its stake in the shipbuilder.

Bonds
Long-dated U.S. government debt yields slipped on Tuesday. The 10-year Treasury note yield eased 2 basis points (0.02 percentage points) to 4.22%. The 2-year Treasury note yield fell by 5 basis points to 3.70%. The U.S. Treasury Department raised its projection of borrowing in the current quarter to the higher end of the range strategists had forecasts.

Analysis
HSBC lowers Roche to Hold/295 CHF - Trader
Vontobel cuts Sonova to CHF 300 (350) - Hold
Deutsche Bank upgrades Zurich Insurance to CHF 560 (545) - Hold