Swiss stocks began the new trading week positively, with the Swiss Market Index rising by 0.89% at Monday's close. Investors are preparing for a series of upcoming economic data releases in the US and Europe. On the economic front, a report from Germany, Switzerland's primary trading partner, indicated that 41.5% of companies faced a lack of orders in October, an increase from 39.4% in July.
This data from the ifo Institute highlights the highest level of order shortages since the financial crisis 16 years ago. In corporate news, Deutsche Bank Research has updated its price target for UBS Group to 27 francs, up from a previous 26 francs, while maintaining a hold rating. Analysts pointed to the Swiss bank's robust third-quarter performance in wealth and asset management, as well as investment banking, predicting a positive market response following the US elections.
UBS shares increased by 1.67% at the closing bell. "We also identify near-term momentum for its sales & trading businesses and long-term advantages for its US corporate finance segment, notably enhanced by the Credit Suisse acquisition. Both divisions have been pivotal in our forecast upgrades," noted Deutsche Bank Research. Conversely, shares of LEM fell sharply by 21.94% after the company disclosed a significant year-over-year decline in sales, reporting a 29.9% drop to 156.6 million francs for the first half of fiscal 2025.
The company's profit suffered as well, dropping to 8.6 million francs from 43.4 million francs during the same period. LEM now anticipates that the business climate will remain challenging for the rest of its fiscal year..