UBS saw its profitability decline in the first quarter of 2025. From January to the end of March, Switzerland's number one bank posted a net profit of 1.690 billion dollars, compared with 1.75 billion twelve months earlier. On the other hand, profit before tax fell by 10% year-on-year to 2.1 billion dollars, UBS reported on Wednesday. In adjusted terms, however, pre-tax profit from core businesses rose by 15%. Return on equity (CET) was 9.6% and 11.3% in adjusted terms. Revenues declined by 1% to USD 12.56 billion and were also down on an adjusted basis to USD 11.9 billion. Core business revenues grew by 6% on an adjusted basis. Net inflows of funds reached 32 billion dollars in global wealth management and 7 billion in asset management. While UBS reported progress in its efforts to integrate the Credit Suisse businesses, additional gross savings amounted to USD 900 million, bringing the total to USD 8.4 billion, or 65% of the expected USD 13 billion. This performance exceeded analysts' expectations. UBS is adopting a cautious outlook. Rising tariffs represent a significant risk to growth and inflation, and markets will continue to react ‘extremely sensitively’ to any new developments, which should lead to further episodes of heightened volatility.

The Swiss stock market carried over the previous day's momentum on Tuesday and closed higher yet again. The SMI climbed a further 0.3 per cent to 12,067 points. Among the 20 SMI stocks, there were twelve price gainers and seven price losers, with one stock closing unchanged. A total of 19.1 (previously: 19.01) million shares were traded. The two pharmaceutical giants Novartis and Roche, both up by 0.9 and 1.4 per cent respectively, accounted for the lion's share of the performance. Novartis had lifted its outlook after a strong start to the year. In the USA, Roche presented a breakthrough status for a diagnostic device for lung cancer from the US Food and Drug Administration (FDA). ABB, on the other hand, lost 2 per cent - weighed down by weak first-quarter figures from competitor Schneider Electric in France. Clariant climbed 3.4 per cent following good business figures for the first period. SIG Group lost 1.5 per cent. Although the beverage bottler delivered solid business figures, uncertainties surrounding legal disputes did not encourage buying. Bucher (+3%) scored with an increase in order intake. Arbonia (-44.7%) fell only visually; the share was traded ex-dividend and ex-special payments. After a heavy loss, Santhera dropped 3.1 per cent. SoftwareOne (+1.8%) notified a further extension of the offer period for the acquisition of Crayon until 6 May 2025.

Europe
The European stock markets closed higher overall on Tuesday, as investors digested another salvo of quarterly results, while hoping that the United States will ease its trade policy. The Stoxx Europe 600 index gained 0.4% to 525.1 points. In Paris, the CAC 40 and SBF 120 were down by 0.2% each, penalized by Schneider Electric. The DAX 40 edged up 0.7% in Frankfurt and the FTSE 100 in London advanced 0.6%. SCHNEIDER ELECTRIC (-6.4%): the electrical equipment manufacturer posted a disappointing sales performance in the first quarter and revised its margin target for 2025 downwards due to a negative currency impact. CAPGEMINI (+5.7%): on Tuesday, the digital services group confirmed its targets for 2025, after reporting virtually flat sales in the first quarter. PLANISWARE (+4.9%): the project management software company reported an increase in sales in the first quarter and continues to forecast growth of between 15% and 20% at constant exchange rates for the year as a whole. BP (-2.4% in London): the British oil group reported a lower-than-expected profit for the first quarter and cut its share buyback forecasts for the current year, as low oil prices weighed on its prospects.

United States
Stocks continued their recent climb Tuesday, as optimism spread among investors that recent tariff turmoil won’t hurt earnings, or the economy as badly as feared. The Dow Jones Industrial Average rose 300 points, or 0.7%, while the S&P 500 increased 0.6%, with each index notching a sixth straight day of gains. After wavering earlier in the day, the Nasdaq Composite advanced 0.5%. Earlier Tuesday, Treasury Secretary Scott Bessent said the U.S. is making progress on trade agreements with India, South Korea and Japan. Still, many American companies are scrambling to understand how various tariffs will affect their businesses. Early Tuesday, General Motors pulled its earnings guidance, saying tariffs had clouded the outlook, and reported that quarterly profit slid. JetBlue Airways withdrew its forecast and warned soft demand will likely continue this quarter. Meanwhile, UPS said it would cut 20,000 jobs and slash costs, a move its chief executive said was timely given macroeconomic uncertainty. Traders are also monitoring the economy for other signs of tariffs’ broader impact. A consumer-sentiment survey showed the economic mood getting gloomier in April, while a separate report on March job openings indicated the U.S. job market looked a little weaker heading into this month’s tariff turmoil. Tuesday also marked the end of the first 100 days of Trump’s second term, concluding the worst start for stocks of any presidential term in more than half a century. The S&P 500 has dropped 7.3% since Inauguration Day on Jan. 20. That is the worst start to a presidency since the beginning of Richard Nixon’s second term in 1973. The Dow lost 6.8% during the same period. In the next few days, investors will hear earnings updates from the majority of the Magnificent Seven, including Meta Platforms, Microsoft, Amazon and Apple. Investors will also parse a slew of economic data, including fresh GDP and inflation estimates due Wednesday and a jobs report slated for Friday.

Asia
Asian indexes diverged for the Wednesday trading session. The indices in Shanghai and Hong Kong are again hovering close to the previous day's closing levels. In Tokyo, the Nikkei index is up 0.1 per cent at 35,878 points after the holiday break on Tuesday. In Seoul, the Kospi retreated by half a per cent. In Seoul, the 0.4 per cent drop in the heavyweight Samsung Electronics put the brakes on slightly. According to the final figures, the company earned and realized more than expected in its first quarter. However, profits in the semiconductor business declined for the third quarter in a row.

Bonds
Benchmark U.S. Treasury yields, and gold prices dipped, a sign that demand for so-called safe-haven assets is easing. Yet data hinted at a weaker economic trajectory. The 10-year Treasury note yield eased by 4 basis points to 4.18%. The 2-year Treasury note yield also shed 4 basis points to 3.66%.

Analysis
Berenberg downgrades Galderma to CHF 112.70 (117.10) - Buy
Exane BNP raises Baloise to Outperform (Underperform)/223 (162) CHF - Trader
Deutsche Bank upgrades Zurich Insurance to CHF 560 (545) - Hold