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Swiss Stocks Close Week Higher; Burckhardt Compression Gains

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The Swiss Market Index ended the trading week in positive territory, closing 1.32% higher on Friday, as investors assessed fresh economic data prints while closely monitoring the geopolitical tensions in the Middle East.

The US and Iran are reportedly close to signing a memorandum of understanding in Geneva this weekend to end the war in the Middle East, according to multiple media outlets including Reuters and The Guardian. However, Iran's official Islamic Republic News Agency warned against media speculation over a potential deal, noting that Tehran would not cede control of the Strait of Hormuz.

"Trump has said many times before that a deal is very close, only for hostilities to resume. However, there does appear to be more positive noise around the deal this time, not just from the US but also from other parties involved in the negotiations. Obviously, the key is the message coming out of Tehran. And for now, it has been very quiet," analysts at ING said. "Therefore, we would be cautious about assuming that the extension of the ceasefire is a done deal. Even if it is, it could be fragile. And clearly, if nuclear talks do not progress, it could very easily fall apart."

Back home, the Swiss Federal Council approved the adoption of a joint declaration regarding a partnership between Switzerland and Vietnam aimed at bolstering and formalizing the two countries' bilateral ties. The council also set the effective date of the revised Anti-Money Laundering Act on Oct. 1.

Over to corporates, Berenberg lowered its price target for Burckhardt Compression (BCHN.SW) to 670 francs from 720 francs, while the stock's buy rating was maintained, noting that the reciprocating compressor technology company delivered a "mixed" set of results for its fiscal year ended March 31. At closing, the stock was up 2.69%.

"On the positive side, profitability exceeded expectations, with the EBIT margin expanding to 13.3% from 12.9% and comfortably ahead of our and consensus forecasts of 12.8%," the research firm said in a note. "While management attributes the weakness in orders to tariff uncertainty, the Middle East conflict and delayed customer investment decisions, we believe investors will question why the deterioration became visible only at the results stage. The magnitude of the shortfall stands in contrast to previous communication, which had left the market expecting a more resilient demand environment."

Swiss citizens will vote on Sunday on whether to cap the country's population at 10 million, a proposal that could impact the hiring of foreign talent for companies.

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Update: US Equity Indexes Jump, Crude Oil Sinks as Trump Hopeful of Signing Iran Peace Deal This Weekend

(Updates with index and price moves as well as other information influencing markets from the first paragraph.)US equity indexes surged while crude oil slumped with government bond yields on Thursday after President Donald Trump canceled planned attacks on Iran and said a peace deal could be signed with Tehran this weekend.The Dow Jones Industrial Average rose 1.9% to 50,848.75, the Nasdaq Composite jumped 2.5% to 25,809.66, and the S&P 500 advanced 1.8% to 7,394.30 at the close. All sectors except energy, consumer staples, and real estate advanced. Industrials, materials, technology, and consumer discretionary led the gainers.In a social media post, Trump said he is canceling the attacks planned for Iran on Thursday."Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening," Trump said in the post.A deal could be signed as soon as this weekend, possibly in Europe, Al Jazeera reported, citing Trump. The Strait of Hormuz will reopen as soon as the pact is signed, the news reported cited the US president as saying.However, Iranian officials haven't confirmed progress on the deal, and the Islamic Revolutionary Guards cast doubt on an earlier statement about the potential agreement, CNN reported. Iran has yet to comment on Trump's latest remarks or the claim that a deal has been agreed, Al Jazeera reported.Nevertheless, the front-month global benchmark North Sea Brent crude futures sank 4.6% to $88.86 per barrel, and the US West Texas Intermediate crude futures slumped 4.2% to $86.27 per barrel.US Treasury yields declined, with the 10-year down 8.3 basis points to 4.45% and the two-year lower by 7.1 basis points to 4.06%.In precious metals, gold futures jumped 2.4% to $4,232.1, and silver futures surged 4.1% to $67.40.In economic news, the core Producer Price Index, which excludes the more volatile food and energy prices, grew 0.4% in May, slower than the 0.5% gain expected in a Bloomberg-compiled poll and a 0.7% rise in April. Core PPI remained at 4.9% year-over-year but below the 5.4% consensus.Headline producer prices rose by 1.1% in May, the same as in April but above the forecast for a 0.7% gain. PPI jumped 6.5% year-over-year, the strongest pace since November 2022, from 5.7% in the previous month. Energy prices surged almost 11% in May following a 7.5% jump in April, according to a Stifel note."This is a Fed that has been willing to tolerate above-target inflation for years, so any notion of a temporary, or bringing back a favorite word, 'transitory' impact from higher energy prices will not be enough to force the Fed's hand," Stifel Chief Economist Lindsey Piegza said in the note.Initial jobless claims rose to 229,000 during the week ended June 6 from 225,000 in the prior week and above the 220,000 expected."It is more likely than not that this [claims data] is just seasonal noise," Jefferies Chief US Economist Thomas Simons said in a note.In company news, Space Exploration Technologies (SPCX) is pricing its initial public offering of about 555.6 million Class A shares at $135 each, the company said Thursday. Shares are expected to begin trading on the Nasdaq Global Select Market and Nasdaq Texas on Friday under the symbol "SPCX".

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Update: US Equity Indexes Advance Following Slower-Than-Expected Growth in Core Producer Price Inflation

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$^DJI$^IXIC$^SPX$AMAT$ORCL$SPCX
Asia Markets

Exchange-Traded Funds Rise as US Equities Advance After Midday

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