Construction chemicals and adhesives manufacturer Sika generated lower sales in the first half of 2025 than in the same period last year, mainly due to negative currency effects. The forecasts for sales for the year as a whole are slightly more cautious. Sales fell by 2.7 per cent to 5.68 billion Swiss francs between January and June, as Sika announced on Tuesday. Excluding currency effects – with the weaker US dollar having a particularly significant impact here – the result was an increase of 1.6 per cent. Of this, 0.6 per cent was organic growth and 1.0 per cent came from acquisitions. As operating profit (EBITDA) declined less than sales to CHF 1.07 billion (-2.1%), profitability improved. The corresponding margin rose by 20 basis points to 18.9 per cent. Net profit declined by 3.9 per cent to 554.4 million. Thus, analysts' expectations were slightly missed at all levels. The forecasts for the current year are slightly more defensive in terms of sales. Sika expects a slight increase in turnover; previously, sales growth of 3 to 6 per cent in local currencies had been targeted. The company continues to forecast an operating profit margin (EITDA) of 19.5 to 19.8 per cent.

SMI lost 0.3 per cent to 11,915 points. Of the 21 SMI stocks, 17 lost ground and three gained, with Alcon closing unchanged. A total of 21.54 million shares were traded (Friday: 18.61 million). Nestlé brought up the rear. The stock continued to suffer from the disappointing business figures reported last week, which were followed by negative analyst comments. Nestlé fell by 1.4 per cent. Pharmaceutical stocks were among the day's winners. Roche and Novartis both gained 0.5 per cent. Logistics giant Kühne + Nagel was also among the winners of the US-EU trade agreement. Its shares rose by 0.6 per cent, making it the day's winner.

Europe
The European stock markets finally closed in the red on Monday, as investors fear the economic consequences of the trade agreement reached between the United States and the European Union (EU). The Stoxx Europe 600 index fell by 0.2% to 548.8 points. In Paris, the CAC 40 and SBF 120 lost 0.4% each. The DAX 40 was down 1% in Frankfurt and the FTSE 100 gave up 0.4% in London. FORVIA (+13.4%): the automotive supplier reported an improvement in margins and cash generation in the first half of 2025 as a result of rigorous cost management. ROBERTET (+5.5%): the natural flavours specialist posted sales of €446.3 million for the first half of 2025, up 7.7% year-on-year on a reported equivalent basis. The Group highlighted the benefits of ‘strong growth in the flavours and raw materials divisions’. Steel stocks were sold off. Salzgitter lost 1.2 per cent and Thyssenkrupp 3.9 per cent. Arcelormittal closed fairly stable. Defence stocks were also sell-off targets. Rheinmetall lost 3.3 per cent and Hensoldt 5.7 per cent. Renk slipped by 5.1 per cent. In Paris, Thales was hit with a 4.3 per cent decline. Shares in the semiconductor sector fared better with the new tariff rate: Infineon gained 1.4 per cent and Aixtron rose 2.5 per cent. STMicroadded 2.7 per cent. Prosieben jumped 11.7 per cent after Italian media holding company MFE increased its takeover bid. Nordex's second-quarter results were well received. However, the share closed 3.0 per cent lower in line with the negative overall market. Brewery group Heineken saw a stronger-than-expected decline in sales volume. The share plunged 8.5 per cent.

United States
U.S. stocks hit fresh records after President Trump’s trade deal with the European Union removed a major risk for markets: that two of the biggest economic powers could descend into a trade war. Meanwhile, the pact prompted pushback in Europe, with critics calling it a humiliating defeat that will likely weigh on already-sluggish European growth. The euro sank against the dollar, while semiconductor stocks gained, helping push the Nasdaq Composite Index to its 14th record high this month. The S&P 500 also hit its sixth consecutive record, rising less than 0.1%, while the Dow Jones Industrial Average ended 0.1% lower. The moves on Monday were modest, with even Nasdaq gaining only 0.3%. Tesla rose 3% after Trump said he struck a deal to set 15% tariffs on goods from the European Union, including automobiles. Tesla operates Gigafactory Berlin-Brandenburg in Germany. The factory makes Model Y vehicles and battery cells. Separately, CEO Elon Musk said the electric-vehicle company signed a $16.5 billion deal with Samsung Electronics to produce new-generation chips. Lockheed Martin was flat after Trump said the EU agreed to buy large quantities of military equipment under the trade agreement. Shares of RTX reversed earlier gains and fell 0.5%. Cheniere Energy, a provider of liquefied natural gas, was up 1.4% after the EU agreed to buy $750 billion of U.S. energy products, including LNG, oil, and nuclear fuel, under the trade deal. U.S.-listed shares of ASML climbed 2.6% and other European semiconductor companies traded higher after the U.S. and EU hashed out a trade deal. Shares of U.S. chip makers also saw gains as Advanced Micro Devices jumped 4.3% to $173.66. UBS analysts raised their price target on AMD to $210 from $150 and maintained a Buy rating on the shares. Intel was down slightly after trading higher. Revvity tumbled 8.3% after the health sciences company posted mixed second-quarter results and trimmed its adjusted earnings guidance for the full year.

Asia
Stocks in Asia mostly fell on Tuesday. The Nikkei 225 is down 0.8 per cent to 40,656 points. While the HSI in Hong Kong slips 0.9 per cent, the Shanghai Composite loses 0.1 per cent. South Korea bucked the negative trend in the region, with the Kospi climbing 0.6 per cent. Singapore Airlines slumped nearly 7 per cent after a sharp drop in profits. According to Maybank analyst Eric Ong, the airline is likely to remain under pressure from competition, uncertain prospects for air freight and rising non-fuel costs.

Bonds
Long-dated U.S. government debt yields climbed on Wednesday. The 10-year Treasury note yield added 4 basis points to 4.42 per cent. A torrent of U.S. economic data starts Tuesday, but the week was off to a quiet start in the Treasury market, with bonds selling off and yields inching higher following the U.S.-EU trade pact. Markets were little disturbed by the Treasury's quarterly refunding announcement, which outlined plans to borrow just over $1 trillion in 3Q and for the Treasury to finish the quarter with an $850 billion cash balance.

Analysis
Nestlé target price: Goldman Sachs downgrades to CHF 92 (95) – Buy
Roche target price: JPMorgan upgrades to CHF 230 (220) – Underweight
Landis+Gyr rating: Berenberg lifts to Buy (Hold) – Target CHF 80 (54)