The Zurich Group slightly increased its results in the first half of 2025, despite a higher burden due to natural catastrophes. Growth in non-life and especially in the life business as well as good investment results provided momentum. Zurich's profit rose by 1 percent compared to the previous year - now amounting to 3.07 billion US dollars, the Group revealed on Thursday. In the first half of 2024, the profit had already climbed by a good fifth. Operating profit increased by 6 percent to $4.23 billion, which is a mid-year record. Zurich did not quite meet the analysts' specifications in terms of profit yet exceeded these in terms of operating profit. Analysts had forecasted a profit of $3.16 billion and an operating profit of $4.14 billion. Zurich is sticking to the targets set for 2025 to 2027: earnings per share are expected to increase by an average of more than 9 percent annually and the return on equity to operating income is predicted to reach at least 23 percent.

The tariff dispute between the US and Switzerland weighed on the Swiss stock market on Wednesday. The SMI lost 0.9 percent to 11,755 points. Of the 21 SMI values, 13 losers and seven winners were facing each other, while Swisscom closed unchanged. 21.35 (previously: 19.61) million shares were traded. Alcon (-3.5%) and the two pharmaceutical heavyweights Novartis (-3.3%) and Roche (-2.7%) were the worst performers. Lonza declined by 2.2 percent. With Nestlé (-0.9%), another heavyweight was on the sales list. Holcim stood out with an increase of 3.1 percent. Holcim benefitted from a positive analyst comment. Jefferies trusts the company to reach the upper end of the forecast corridor with this year's EBIT thus recommending the stock at a higher price target. In addition, investors also resorted to financial securities that benefitted from slightly rising market interest rates. The shares of the insurers Swiss Life, Swiss Re and Zurich gained up to 2.4 percent. UBS improved by 1.8 percent.

Europe
European stock exchanges closed in scattered order on Wednesday, on the eve of the entry into force of 15% US tariffs on most European exports. The Stoxx Europe 600 index fell 0.1% to 541.1 points. In Paris, the CAC 40 and the SBF 120 took 0.2% each. The DAX 40 in Frankfurt and the FTSE 100 in London also advanced 0.2%. BAYER (-9.9%): the pharmaceutical and chemical conglomerate saw its net loss increase in the second quarter, to €199 million compared to €34 million a year earlier, mainly due to litigation costs. COMMERZBANK (+1.2%): the German bank posted above-expected results in the second quarter and raised its forecast for the year as as the strong growth in commission revenues offset a slight decrease in interest income. NOVO NORDISK (-5.4%): the Danish pharmaceutical group posted a net profit up 32% in the second quarter, while sales of its anti-obesity drug Wegovy jumped 67% year-on-year. GLENCORE (-5.6%): The commodity trading group reported a net loss of $655 million in the first half of the year, compared to a loss of $233 million a year earlier, due to depreciation in its coal production activities in Colombia. Low coal prices and the decline in copper production also weighed on the group's adjusted profit. SANOFI (-2.9%): the pharmaceutical company confirmed on Wednesday that it had completed the acquisition of Vigil Neuroscience, an American biotechnology company specialising in the development of innovative drugs for the treatment of neurodegenerative diseases. The amount of the transaction is $470 million.

United States
A rally in Apple and other big tech shares left the Nasdaq composite near a record Wednesday, while U.S. trading partners rushed to strike deals before President Trump’s tariff deadline on Thursday. The Nasdaq rose 1.2%, leading the session’s gains and closing less than 0.1% from a record. The S&P 500 gained 0.7% and the Dow Jones Industrial Average added 0.2%, or 81.38 points. Apple shares soared 5.1% after a White House official said the iPhone maker will pledge a $100 billion U.S. manufacturing commitment on Wednesday. Other shares of tech behemoths also advanced: Amazon.com shares climbed 4%, Tesla rose 3.6% and Meta Platforms added 1.1%. Investors also parsed a whirlwind of trade developments. Trump’s special envoy Steve Witkoff met Russian President Vladimir Putin in Moscow on Wednesday. Trump has said Russia must strike a peace deal with Ukraine soon, or risk severe economic penalties. Swiss President Karin Keller-Sutter said Wednesday that she held a “very friendly and open exchange” with Secretary of State Marco Rubio, after arriving in Washington to try to fend off the 39% levy about to hit Switzerland. Trump also followed through on threats to punish India for buying Russian oil, stating that Indian imports will be subject to an extra 25% tariff, on top of the 25% rate they already face. Brent crude futures, the international benchmark, settled 1.1% higher Wednesday at $66.89 a barrel. Plus, Trump’s tariffs on Brazil took effect, raising the duty for certain Brazilian goods to 50%. The Cboe Volatility Index, which measures expectations for stock swings over the next 30 days, fell below 17. Meanwhile, earnings season continued. McDonald’s shares gained 3% Wednesday after the fast-food chain saw a sales rebound during the second quarter. Uber Technologies shares fell 0.2% despite beating second-quarter sales estimates and disclosing a new $20 billion share-repurchase program. Disney’s stock dropped 2.7% despite the company raising its annual profit forecasts for streaming and parks and reporting an earnings beat. Shares of Rivian Automotive declined 4.2% after the electric-vehicle maker said it expects the end of EV tax credits to temper its earnings this year.

Asia
In Asia, major indexes broadly closed with gains on Thursday. The Nikkei-225 rises by 0.7 percent to 41,082 points, the Kospi in Seoul gains 0.6 percent. Hong Kong it is up half a percent, Shanghai only slightly by 0.1 percent. The focus is on chip stocks as US President Donald Trump intends to levy a 100 percent tariff on imports of semiconductors. However, companies relocating their production back to the USA are supposed to be exempt. In Tokyo, Tokyo Electron and Renesas are under pressure with losses of around 3 percent each, while Advantest is changed little. In Seoul, Samsung Electronics increases by 1.8 percent and SK Hynix by 0.3 percent. In Taipei, Taiwan Semiconductor Manufacturing jumped by almost 5 percent. The company is likely to be spared tariffs due to its plans to expand production in the US. SK Hynix and Samsung Electronics also suppose not be affected by the customs duties. Sony is pushing up a good 4 percent in Tokyo, thus reflecting excellent quarterly figures. Sony reported a 36 percent increase in earnings and upped the earnings forecast by 4 percent.

Bonds
Long-dated U.S. government debt yields climbed on Wednesday. The benchmark 10-year Treasury yield edged higher after a $42 billion auction of new 10-year notes attracted lackluster demand from investors. The 10-year Treasury note yield added 2 bps to 4.22%. Bond yields move inversely to prices.

Analysis
UBS raises BP target to 425 (375) p - Neutral
DocMorris: Research Partners drops to 16 (18) CHF - Buy
Price target Holcim: Jefferies upgrades to 79.30 (66) CHF - Buy