Francois-Henri Pinault, the billionaire heir who spent two decades transforming Kering into a luxury powerhouse, is stepping back as chief executive, hoping an auto-industry veteran can pull Gucci and Saint Laurent out of a slump. Kering named outgoing Renault chief Luca de Meo as new CEO. That would end months of speculation about a possible leadership change at the French fashion group, which also owns Bottega Veneta, Balenciaga and Alexander McQueen. Pinault, who took charge in 2005 from his father, oversaw Kering’s shift from a sprawling retail conglomerate to a focused luxury player. The move paid off handsomely during the boom years, but it has since run into trouble. Renault said de Meo, who has led the carmaker for five years, would “step down and pursue new challenges outside the automotive sector.” His last day will be July 15. For Kering, the move would represent a gamble at a precarious moment. Once a leader in European luxury, the group now lags behind rivals such as Hermès and Bernard Arnault’s LVMH by a widening margin.

The Swiss stock market has finished lower in back-to-back sessions, clipping more than 230 points or 1.9 percent in that span. The SMI defied most of the other European markets, weighed by the Israel-Iran conflict, which entered its fourth day with fresh missile exchanges. Iranian strikes on Tel Aviv, Haifa, and Petah Tikva killed at least five, injured dozens, and damaged key infrastructure, including a power plant. For the day, the SMI lost 55.15 points or 0.45 percent to finish at 12,090.87 after trading between 12,072.29 and 12,155.41. Among the actives, UBS was up 0.08 percent, while Swisscom perked 0.09 percent, Zurich Insurance added 0.29 percent, Swiss Life collected 0.48 percent, Julius Bar Gruppe gained 0.61 percent, Roche Holding stumbled 2.52 percent, Swatch Group rallied 2.50 percent and Novartis sank 0.81 percent. In economic news, Switzerland's producer and import prices continued to decline in May, data from the Federal Statistical Office showed on Monday. Producer and import prices dropped 0.7 percent year-on-year in May, faster than the 0.5 percent in the previous month. The price index has been falling since May 2023. The producer price index showed an increase of 0.4 percent, while import prices dropped by 2.9 percent.International markets

Europe
The major European stock markets traded higher on Monday, reversing losses from the previous session as world leaders gathered in Canada for the G7 summit, which will address global security, economic resilience, and tech cooperation. Discussions to resolve the Middle East crisis will also be a top priority. Germany's DAX climbed 182.89 points or 0.78 percent to finish at 23,699.12, while the FTSE in London rose 24.59 points or 0.28 percent to close at 8,875.22 and the CAC 40 in France added 57.56 points or 0.75 percent to end at 7,742.24. In Germany, BASF improved 0.71 percent, while Bayer rose 0.35 percent, Siemens added 0.49 percent, Deutsche Bank collected 2.39 percent, Deutsche Post perked 0.20 percent, Mercedes Benz sank 0.79 percent, Deutsche Borse rallied 2.09 percent, Deutsche Telekom improved 1.63 percent and E.ON dropped 0.97 percent. In London, Ashtead rallied 2.70 percent, while Vodafone spiked 2.63 percent, Tesco skidded 1.03 percent, Prudential and Experian both jumped 1.87 percent, Standard Chartered soared 3.01 percent, Rio Tinto rose 0.34 percent, Rolls-Royce accelerated 1.77 percent, British American Tobacco improved 0.89 percent and BP lost 0.94 percent. In France, Danone shed 0.36 percent, while BNP Paribas rallied 2.95 percent, Carrefour added 0.55 percent, Credit Agricole jumped 1.83 percent, Societe Generale surged 3.22 percent, Sanofi slumped 1.06 percent, Kering skyrocketed 11.76 percent and Stellantis improved 0.83 percent. In economic news, the euro area hourly labor cost increased at a slower pace in the first quarter of 2025, data published by Eurostat showed on Monday. Hourly labor cost grew 3.4 percent on a yearly basis, following a 3.8 percent increase seen in the fourth quarter.

United States
After moving sharply higher early in the session, stocks gave back some ground over the course of the trading day on Monday but continued to turn in a strong performance. With the upward move, the markets largely offset the steep losses seen during Friday's session. The major averages all ended the day firmly in positive territory, with the tech-heavy Nasdaq posting a standout gain. The Nasdaq jumped 294.39 points or 1.5 percent to 19,701.21, the S&P 500 advanced 56.14 points or 0.9 percent to 6,033.1 and the Dow climbed 317.30 points or 0.8 percent at 42,515.09. A report from the Wall Street Journal citing Middle Eastern and European officials said Iran has been urgently signaling that it seeks an end to hostilities and resumption of talks over its nuclear programs. However, he added, 'The Middle East conflict remains a fluid situation and there is the potential for markets to still experience sudden jolts if the tension escalates further.' Airline stocks showed a substantial move back to the upside after moving sharply lower over the past few sessions, with the NYSE Arca Airline Index soaring by 3.3 percent. Significant strength was also visible among semiconductor stocks, as reflected by the 3.0 percent surge by the Philadelphia Semiconductor Index. Computer hardware, financial and telecom stocks also considerable strength, while pharmaceutical and oil service stocks bucked the uptrend.

Asia
The East Asian stock markets were mixed on Tuesday within relatively narrow limits. After a recovery on Monday following the losses on Friday, the price gains on Wall Street on Monday did not initially provide any further strong impetus. This also applies to the news that Iran is said to have signalled its willingness to negotiate a ceasefire and nuclear negotiations. There is also likely to be some caution in view of the US Federal Reserve's interest rate decision on Wednesday.

Bonds
In the U.S. bond market, treasuries are showing a lack of direction following the pullback seen last Friday. The yield on the benchmark ten-year note, which moves opposite of its price, is currently down by less than a basis point at 4.416 percent.

Analysis
UBS raises Vodafone target to 72 (68) p – Neutral
UBS raises Anheuser-Busch InBev target to EUR 78 (75) – Buy
Deutsche Bank lowers Sodexo target to EUR 69 (73) – Hold