Swiss shares rose 0.27% at the trading close on Tuesday, reversing the previous day's losses, amid hopes of progress in peace talks in the Middle East and several favorable corporate developments.
US President Donald Trump said his country and Iran are "in the final throes of what will be a very, very good deal," hours after brokering a halt to retaliatory strikes between Tehran and Israel.
On the corporate front back home, Givaudan (GIVN.SW) jumped 7.48% following a slew of analyst rating upgrades. JPMorgan placed the flavor and fragrance company on Positive Catalyst Watch and Deutsche Bank upgraded to buy from hold, a day after Goldman Sachs raised its own rating to buy from sell.
"Demand remains solid, with Q2 conditions holding up after the March step-up. Combined with increasing innovation activity, this should lead to a sequential organic sales growth (OSG) acceleration for most," Deutsche Bank said as it also raised its price target on Givaudan to 3,300 francs from 3,000 francs. "At this stage, cost inflation appears to be manageable and should be passed through fairly quickly, ensuring profitability remains relatively well-underpinned, especially as self-help focus remains strong for most names. All in all, we expect Q2 results to be above the consensus."
Meanwhile, UBS Group (UBSG.SW) gained 0.21% after sources told Reuters that the Swiss parliament is considering new proposals to ease the capital requirements for the country's biggest bank. The new proposals would reportedly reduce the government's requirement for the bank to fully back its foreign subsidiaries with common equity tier 1 capital to 70% or 80%.
In other corporate news, SoftwareOne (SWON.SW) dropped 2.97% as it set out its financial targets for 2030 at its capital markets day. The Swiss software and cloud technology group is targeting a high-single-digit revenue compound annual growth rate and a dividend payout ratio of between 30% and 50% of its net profit.