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Swiss Stocks Close Flat; Roche Shares Down

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The Swiss Market Index closed Tuesday trading flat as investors digested the latest local corporate updates as well as developments in the Middle East.

The US Food and Drug Administration accepted Roche's (RO.SW) new drug application for giredestrant on a priority review basis. The investigational treatment is an oral selective estrogen receptor degrader indicated as an adjuvant treatment for adults with estrogen receptor-positive, human epidermal growth factor receptor 2-negative, stage 1, 2, and 3 breast cancer. The drugmaker was down 2.59%.

Meanwhile, Bloomberg News reported, citing a source, that UBS Group (UBSG.SW) plans to issue at least $500 million of perpetual Additional Tier 1 bonds, with a potential coupon of 7.5% and a first call date in late 2032. The lender, which rose 1.17%, had no comment when reached by.

RBC Capital Markets upgraded its price target and earnings forecasts for Compagnie Financière Richemont (CFR.SW) after the sector perform-rated luxury goods company published its fiscal 2026 financial report.

"Richemont's 4Q26 confirmed strong Jewellery Maisons revenue momentum (+16%), though earnings uplift was more modest given softer gross margin, higher [operating expenses] (inc one-offs) and tax rate. For FY27E, we expect continued momentum for its Jewellery Maisons (+10%), although [we] do expect price increases to moderate somewhat in line with moderating gross margin headwinds, particularly in 2H27E. Raising revenue estimates by 3% and EPS by 2%, although we remain slightly below consensus. We roll forward our DCF, resulting in a revised [price target] of CHF 175 (from CHF 165)," the research firm said. Richemont edged up 0.66%.

In economic news, Switzerland's watch exports tumbled 16.6% year over year to 2.13 billion francs in April, owing to a value decline across nearly all material categories, particularly precious metal watches and steel models, according to the Federation of the Swiss Watch Industry.

On the geopolitical front, Tehran is reviewing Washington's proposed temporary agreement to end the conflict in the Middle East, Reuters reported, citing Iran's Mehr News Agency. Iran has not responded to a proposed final text of the deal, according to the report.

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Germany's Blue-chip DAX Index Gains; Eurozone Inflation Accelerates

German equities wrapped up Tuesday's trading in the green, with the blue-chip DAX index up 0.48%, after the market assessed the latest eurozone inflation print, trade updates, and developments on the Middle East war.According to provisional data from Eurostat, annual inflation in the euro area stood at 3.2% in May, in line with market expectations and against the previous month's 3%. The core rate, which excludes energy, food, alcohol and tobacco, stood at 2.5%, above the prior 2.2% and the expected 2.4%."A week ahead of the next [European Central Bank] meeting, this is the expected uptick in inflation that will motivate the central bank to decide on an 'insurance' hike," ING said. "With the war in the Middle East entering its fourth month, the energy price shock has become more permanent - even though oil prices are actually lower than what many had pencilled in for a more adverse scenario regarding the length of the war. This is also why there won't be any automatic shift in inflation and growth scenarios at the ECB's meeting next week."In trade news, the European Parliament's trade committee gave its preliminary approval for a trade agreement with the US. The approved measures cover changes to current legislation to enable the EU to scrap tariffs on American industrial goods and select farm products. A parliamentary plenary vote is expected on June 16, ahead of US President Donald Trump's threat of steeper levies if a trade pact is not finalized by July 4.On the geopolitical front, Reuters reported, citing Iran's Mehr News Agency, that Tehran is currently evaluating a proposed temporary peace agreement with the US. The report follows Trump's comments that negotiations between the two nations are ongoing and a deal to extend the ceasefire and reopen the Strait of Hormuz is expected over the next week.In corporate news, Infineon Technologies (IFX.F) surged to the top of the index, climbing 9.52%, after fellow semiconductor company STMicroelectronics raised its 2026 data center revenue targets amid robust artificial intelligence-related demand.Meanwhile, BofA Global Research reiterated Bayer's (BAYN.F) buy rating, with a price objective of 50 euros, as the research firm noted the German life science company's Glyphosate Missouri class action was transferred to the Northern California federal court under US District Judge Vince Chhabria. Bayer was one of the worst performers on the index, closing 2.93% lower."There is some debate on validity of the removal and whether there is any route to remanding it back to Missouri. It's unclear who has the final decision as to whether the class being removed was appropriate (the Missouri federal court or Chhabria), though some legal feedback suggests it may be Chhabria's decision. As a reminder, Chhabria was very negative on the class action in an oral argument a few weeks ago (but didn't get involved due to lack of jurisdiction) and he rejected Bayer's 2020 attempt at a class settlement. From here we see it unclear how timelines for Chhabria's involvement in the class evolve, or any appeals for remanding the class action back to Missouri, relative to the June 4th opt-out deadline (unchanged), and SCOTUS decision widely anticipated by end June/early July," BofA wrote.

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Asia Markets

British Equities Close in Green; British American Tobacco Affirms Outlook

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Asia Markets

European Stocks Close Higher in Tuesday Trading; Euro Area Inflation Rises to 3.2% in May

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