Swiss Life earned a net profit of 602 million francs over the first six months of the year, down 5% compared to 2024. This is mainly due to higher tax charges of 36 million, the insurer said in a statement on Wednesday. Gross premiums increased by 5% in local currency to 12.1 billion francs. Swiss Life has also further enhanced income from fees and commissions of 1.27 billion francs in total (+2% in local currency). The proceeds of commissions from wealth management and financial advice remained almost stable in local currencies at 392 million. Adjusted operating profit was set at $903 million, up 3% year-on-year. Operating and net profits exceed analyst forecasts while gross premiums are in line with expectations.

On Tuesday, the SMI lost 0.7 percent to 12,088 points. Among the 21 SMI values, 16 price losers and four winners were facing each other, one share closed unchanged. 18.8 (previorly: 12.06) million shares were traded. Investors parted ways with economic cyclists such as ABB (-1.8%). Geberit, Holcim and Sika lost between 1.4 and 2.4 percent in the construction sector. Price gains of the pharmaceutical heavyweight Roche (+0.7%) prevented a larger minus of the SMI. Givaudan (+0.2%) and Swisscom (unchanged), which were considered defensive, also held up better than the market. Nestlé (-0.7%) came under pressure after the surprising fluctuation at the top management level. Novartis (-0.3%) could not hold interim gains. Partners Group only initially benefited from the figures for the first half of the year and an increased outlook. The stock closed 3.2 percent lower. Although the company's net profit had exceeded the consensus estimate, management fees were slightly lower, as noted by UBS. Higher costs also reduced the EBIT margin compared to the previous year, according to analysts. Swiss Life dropped by 1.2 percent on the day before the publication of half-yearly figures. Swiss Re and Zurich each declined by 0.7 percent. UBS recorded a decrease of 2.1 percent. Meanwhile, the increase in market interest rates weighed on the real estate sector. Peach Property plummeted by 4.3 percent and PSP Swiss Property by 1 percent.

Europe
European stock exchanges plummeted on Tuesday as investors were concerned about political and budgetary uncertainties in France as well as in the United Kingdom. The Stoxx Europe 600 index dropped 1.5%, to 543.2 points. In Paris, the CAC 40 lost 0.7% and the SBF 120 shed 0.8%. In Frankfurt, the DAX 40 dropped 2.3% while the FTSE 100 in London fell 0.9%. LVMH (+1.9%), KERING (+3.8%), HERMES (-1.1%): In a note sent to its customers, HSBC stated on Tuesday that it saw a brighter future for the luxury sector, thanks in particular to the beginning of recovery in China. HSBC raised its recommendation from "hold" to "buy" on Kering and LVMH shares (owner of L'Agefi). On the other hand, the financial intermediary lowered its opinion on the Hermès stock from "buy" to "hold". CREDIT AGRICOLE SA (-1.4%): the banking group announced on Tuesday that it was launching cash buyback offers for all two series of outstanding perpetual bonds. DANONE (+2 6%): the agri-food group confirmed on Monday evening that it had placed a bond of 1.3 billion euros divided into two tranches. PERNOD RICARD (+0.5%), STELLANTIS (-2.7%): the spirits group and the car manufacturer will be eliminated from the Stoxx Europe 50 index on September 22 at the opening of the markets, revealed Monday evening ISS Stoxx, a subsidiary of the stock exchange operator Deutsche Börse.

United States
U.S. stocks fell to start September after renewed inflation and debt concerns sparked a global bond selloff. The tech-heavy Nasdaq composite led declines, closing down 0.8% after losing nearly 2% earlier in the day. The S&P 500 was 0.7% lower, while the Dow Jones Industrial Average dropped 249 points, or 0.5%. It was a fitting start to September, which has been the worst-performing month for the S&P 500 over the past decade with an average loss of 2%, according to UBS. Real estate, technology stocks and other riskier assets fell Tuesday, as they often do when bond yields rise. The dollar rose against a basket of other currencies, while the gold price set a new all-time high at $3,549.40 a troy ounce. After a quiet August in stock and bond markets, Tuesday’s action showed that fiscal and inflationary concerns could spark more excitement in September, which has a number of coming catalysts. On Friday, the August jobs report will hint at how the labor market is holding up amid Trump’s trade war. An unexpectedly strong number could change the Fed’s calculus ahead of its rate-setting meeting, which is widely expected to result in a cut. Notable individual stock moves Tuesday included PepsiCo, which posted a 1.1% gain after The Wall Street Journal reported that activist investor Elliott Investment Management has built up a roughly $4 billion stake. Meanwhile, shares of Modelo-and-Corona-marketer Constellation Brands tumbled 6.6% after it slashed its beer sales outlook for the year

Asia
Stocks in Asia mostly fell on Wednesday. Asian stock exchanges are going down on Wednesday on a broad front. The Japanese Nikkei 225 index loses 0.6 percent to 42,061 points. In Shanghai (-1.0%) and Hong Kong (-0.5%) does not help that a purchasing managers' index for the service sector has risen in August compared to July and indicates expansion. Only Seoul escapes the downward trend, where the Kospi rises by 0.3 percent. The revocation of US authorization for Taiwan Semiconductor Manufacturing (TSMC) to deliver important equipment to its Chinese site hardly burdens the stock. It gives in by 0.4 percent.

Bonds
Treasurys sell off as Wall Street grapples with policy uncertainty, sending yields higher. Manufacturing reports today were lukewarm. JOLTS and the Beige Book are due tomorrow. For Thursday, economists surveyed by WSJ expect ADP job creation at 75,000, down from July’s 104,000. The 10-year Treasury note yield adds 0.049 percentage point to 4.276% and the two-year rises 0.035 p.p. to 3.657%. The yield curve steepens, with the 2y-30y gap the widest since 2021.

Analysis
UBS downgrades SoftwareOne to CHF 9.60 (10.60) – Buy
DZ downgrades Givaudan to CHF 3,650 (3,800) – Hold
Berenberg lifts Accelleron to CHF 62 (60) – Hold