FedEx is expecting mixed results in its current first quarter as tariffs weigh on its international shipping business. The package-shipping company said Tuesday it logged some of the biggest declines in shipping across the Pacific Ocean during the recently ended fourth quarter, as China-to-U. S. trade fell sharply after new tariffs were announced in April. FedEx is also cutting some of its European workforce as it continues to trim costs and looks to navigate uncertain customer demand in the year ahead. Shares fell 5.96%, to $215,84, in after-hours trading Tuesday. FedEx expects revenue to be flat or increase up to 2% in its fiscal first quarter. Analysts were anticipating a sales increase of about 0.6%. Earnings per share are projected to be $2.90 to $3.50, below the $3.83 a share analysts were forecasting. The company didn’t provide a full-year outlook, as it has in the past. Profit was $1.65 billion, or $6.88 a share, compared with $1.47 billion, or $5.94 a share, a year earlier. Stripping out certain one-time items, adjusted per-share earnings were $6.07, ahead of the $5.82 forecast by analysts, according to FactSet. Revenue rose 1%, to $22.22 billion. Analysts surveyed by FactSet forecast revenue of $21.74 billion. FedEx is about two years into a cost-cutting plan it launched amid demand challenges related to high inflation. It said Tuesday it aimed to hit $1 billion in annual savings this year. During the fourth quarter, it retired 12 aircraft as part of the cost-cutting efforts.

The SMI edged up 1.1 per cent to 11,989 points on Tuesday. Among the 20 SMI stocks, there were 19 gainers and only one loser, Givaudan (-0.1%). A total of 23.44 million shares were traded (Monday: 20.39 million). Holcim was by far the day's biggest gainer, up 6.8 per cent to 58.44 Swiss francs. The shares were traded ‘ex Amrize’ for the first time on Monday, as Holcim's US business, which is summarised under this name, is now listed separately. Amrize jumped by 7.4 per cent. The analysts at DZ Bank continue to believe that ‘Rest-Holcim’ is very well positioned to benefit from the need for infrastructure renewal, new construction - particularly in commercial construction - and the modernisation of old buildings. They have adjusted the price target after the spin-off to CHF 66 from CHF 110. The analysts at Bank of America have raised Holcim to ‘Buy’ from ‘Neutral’ and also see a target price of 66 francs. Behind Holcim, Sika (+3.7%) and UBS (+3.1%) were the biggest winners in the SMI.

Europe
The European stock markets closed sharply higher on Tuesday after a ceasefire between Israel and Iran came into effect and oil prices fell. The Stoxx Europe 600 index gained 1.1% to 541.0 points. In Paris, the CAC 40 and SBF 120 added 1% and 1.1% respectively. The DAX 40 gained 1.6% in Frankfurt, while the FTSE in London ended flat, held back by the oil sector. A precarious ceasefire was declared on Tuesday between Iran and Israel, following 12 days of war and US air strikes on the Islamic Republic's nuclear facilities. OIL SHARES, AIRLINE COMPANIES: the fall in crude oil prices has led to sell-offs in oil and oil-related stocks such as TOTALENERGIES (-3.2%) and VIRIDIEN (-5.8%). Conversely, the airline sector rebounded as air traffic to the Middle East should resume normally if the ceasefire holds. AIR FRANCE-KLM climbed 8.7% in Paris, LUFTHANSA gained 6.5% in Frankfurt and IAG rose 6.5% in London. ALSTOM (+7.7%): the rail equipment supplier has secured an order from SNCF Voyageurs for 96 new-generation RER NG trainsets, worth around €1.7 billion. CREDIT AGRICOLE (+2.1%): Indosuez Wealth Management, the wealth management subsidiary of the Crédit Agricole group, confirmed having signed an agreement to acquire the Wealth Management clients of BNP PARIBAS (+3.2%) in Monaco. The financial terms of the transaction were not disclosed.

United States
Oil prices slid further and the S&P 500 approached a record on Tuesday after President Trump brokered a shaky cease-fire between Israel and Iran, fuelling hopes that the Middle East could avoid a protracted regional war. Benchmark U.S. oil futures fell 6% to settle at $64.37 a barrel, below where they stood when Israel launched a surprise attack on Iran’s nuclear program and military leadership earlier this month, kicking off the hostilities. The drop extended Monday’s 7.2% decline in U.S. oil prices, and it accelerated after Trump said Tuesday morning that China could continue to purchase Iranian oil, a sign he might be open to easing pressure on Iran. His administration has imposed numerous sanctions designed to impede Iranian oil sales. Stocks in the U.S. rallied after Trump announced the cease-fire Monday evening. The truce came as a relief to investors who had feared broad economic fallout after the U.S. joined the Israeli campaign over the weekend, dropping powerful bombs on Iranian nuclear sites. But Tehran’s retaliation - a missile barrage aimed at a U.S. base in Qatar - caused no casualties, and it appeared to be aimed at avoiding escalation. The S&P 500 climbed 1.1% on Tuesday, to within 1% of the record closing high it reached in February. The Dow Jones Industrial Average advanced 507 points, or 1.2%. The technology-heavy Nasdaq Composite rose 1.4%. Its sister index, the Nasdaq-100, advanced 1.5% to set a new record. Tuesday’s gains were broad-based, as investors piled into shares of economically sensitive companies. Cruise operator Carnival jumped 6.9%. Chip makers Intel and Advanced Micro Devices both gained more than 6%. Shares of Robinhood Markets jumped 7.4%. Energy stocks were the main losers on Tuesday, with Exxon Mobil sliding 3%. As geopolitical worries subsided, the Cboe Volatility Index - known as Wall Street’s “fear gauge” - tumbled 12%. Gold, which is seen as a safe-haven asset in times of volatility, also fell, with futures on the precious metal declining 1.8%.

Asia
In Asia, major indexes broadly closed with gains on Wednesday in view of the favourable cues from Wall Street. The Nikkei-225 added 0.2 per cent, while share prices on the South Korean stock exchange declined moderately. In Shanghai, stock prices advanced by 0.3 per cent, while the Hang Seng Index in Hong Kong recorded the strongest gains of 0.8 per cent. Oil prices increase by more than 1 per cent but remain well below the levels before the ceasefire. Gold prices edged up marginally after the previous day's sharp correction.

Bonds
U.S. Treasury yields were mostly higher early Wednesday. Odds of at least one cut by the September meeting rose to 85.2% from 82.7% on Monday and 62.5% a week ago. Powell's testimony followed recent comments from two central bank officials who suggested a July cut was on the table if inflation stays tame despite worries about a spike due to tariffs.

Analysis
Rating Partners Group: Bank of America downgrades to Neutral (Buy) - Target 1100 (1470) CHF
Rating Holcim: Bank of America raises to Buy (Neutral) - Target 66 (95) CHF
Target price Sandoz: Berenberg upgrades to 41 (39) CHF - Hold