Eli Lilly (+0.4%) will begin offering its popular new weight-loss drug Zepbound in vials—in addition to standard injection-pen devices—at about half the price of the original for certain doses. To date, Zepbound has been packaged in a single device, an injection pen that contains both the drug and the needle. Patients press a button on one end to insert a needle on the other end that delivers the dose. With the new vials, patients will use a syringe to draw out their dose and then to inject themselves. Indianapolis-based Lilly said it is rolling out the vials largely to help boost overall supplies, in response to high demand, because vials are easier to make than injection pens. Lilly’s vial move also takes aim at a competitive threat from lower-cost knockoffs sold by compounding pharmacies. Lilly and Novo Nordisk, which makes the other leading anti-obesity drug called Wegovy, have challenged the safety of compounded versions of weight-loss drugs. The Food and Drug Administration has said it can’t vouch for the safety and efficacy of compounded versions of the drugs. Both Lilly and Novo have taken legal action to try to block the sale of some compounded versions of the drug, or to force sellers to avoid using brand names to promote them, but many remain available.

The Swiss stock market ended trading on Tuesday with slight losses. The SMI lost 0.5 per cent to 12,297 points. Among the 20 SMI stocks, there were 17 losers and 3 winners. A total of 12.17 (previously: 9.94) million shares were traded. The list of price gainers in the SMI is short. UBS rose by 0.2 per cent, Alcon also increased by 0.2 per cent and Zurich Insurance by 0.1 per cent. On the other hand, Partners Group fell by a substantial 2.3 per cent and Richemont lost 1.8 per cent. Roche (-1.1%) recorded a successful approval in the European Union. The Commission authorised the drug PiaSky for injection. It is used to control the rare blood disorder paroxysmal nocturnal haemoglobinuria (PNH). The shares of competitor Novartis fell 0.1 per cent. ABB (-0.3%) is strengthening its position in the field of industrial emissions measurement. The Group is taking over the Födisch Group from Markranstädt near Leipzig. The manufacturer of measurement and analysis technology for the energy and industrial sectors generated sales of 50 million euros in 2023 with 250 employees. ABB did not disclose a purchase price. The transaction is expected to be finalised by the end of the year. Schindler lost 2.4 per cent in the broader market. Analysts at Goldman Sachs downgraded the shares of the lift and escalator manufacturer from Neutral to Sell. Shares in Meyer Burger, which had plummeted by around 45 per cent the previous day, slid by a further 13.8 per cent.

Europe
European stocks traded in positive territory on Tuesday as investors awaited Nvidia earnings and fresh data catalysts that may determine the pace at which the Federal Reserve reduces borrowing costs. The Stoxx Europe 600 index gained 0.2% to 518.9 points. In Paris, the CAC 40 and the SBF 120 each lost 0.3%, penalised by luxury goods stocks. The DAX 40 in Frankfurt climbed 0.4% and the FTSE 100 gained 0.2% on the London Stock Exchange, which was closed on Monday. The energy industry engineering group Technip Energies (+1.5%) won a front-end engineering design (FEED) contract from British oil and gas specialist BP (0.7% in London) for the H2Teesside hydrogen project in the north-east of the UK. Financial details of the contract were not disclosed. Construction and concessions group Eiffage (up 0.9%) announced that it had won a consortium contract to build a commercial complex for the French Ministry of the Interior and Overseas Territories. The contract, worth close to €700 million, was won alongside the architectural firm Groupe-6 and the engineering firm Ingérop. Irish airline Ryanair (up 4.6% in Dublin) announced on Tuesday that it would be reducing capacity at Berlin-Brandenburg airport by 20% due to high access costs.

United States
U.S. stock indexes eked out gains Tuesday ahead of this week’s main event for investors: Nvidia earnings on Wednesday afternoon. The S&P 500 edged up 0.2%, not far off its record high. The tech-heavy Nasdaq Composite ticked 0.2% higher. The Dow Jones Industrial Average ended flat, up 10 points. One reason the chip maker’s results are center stage: Nvidia’s results have recently led to market reactions that rival those seen after a surprising jobs or inflation report, according to Deutsche Bank strategist Jim Reid. Nvidia shares added 1.5% Tuesday and have gained more than 150% for the year. In the meantime, investors got more insight into the U.S. economy Tuesday. The Conference Board’s consumer-confidence index rose to 103.3 in August, topping economists’ expectations. Another gauge indicated that annual home-price growth slowed a little in June, continuing a recent trend. The Federal Reserve is widely expected to lower interest rates at its meeting next month, but investors are uncertain on how much the central bank may cut rates this year. With inflation easing, Fed Chair Jerome Powell indicated last week that the central bank was focused on preventing further labor-market weakness. The S&P 500 is just 0.7% below its record close, reached last month, and up 18% for the year. The Nasdaq is up 18% for the year, while the Dow has advanced 9%. Super Micro Computer shares fell 2.6%. Hindenburg Research said Tuesday that it was shorting shares in the server maker.

Asia
Negative signs continue to dominate the stock markets in East Asia and Australia in the middle of the week. On the Shanghai stock exchange, the Composite lost 0.2 per cent. In Hong Kong, the Hang Seng Index fell by 1 per cent; the sub-index of technology stocks dropped by 1.8 per cent. The announcement of a share buyback of up to USD 5 billion helped JD.com to climb 1.5 per cent there. In Tokyo, the Nikkei 225 index narrowly held its ground at 38,265 points. Advantest gained 3.4 per cent and Lasertec over 2 per cent. Sony increased by 1.7 per cent; the company plans to hike the price of its Playstation 5 in Japan by almost 20 per cent. In Seoul, the Kospi fell by 0.2 per cent. Investors are shedding shares in the construction and financial sectors. GS Engineering & Construction fell by 4.4 per cent and Shinhan Financial Group by 4.7 per cent. Chip stocks recorded moderate losses: SK Hynix declined by 0.1 per cent and Samsung Electronics by 0.3 per cent. Inflation data weighed on the Australian stock market. The S&P/ASX-200 slipped 0.4 per cent.

Bonds
Long-dated U.S. government debt yields drifted higher on Tuesday, but remained near their lows of the year, as investors waited for fresh data that may determine the pace at which the Federal Reserve reduces borrowing costs. The 10-year Treasury note yield gained 2 basis points to 3.838%. The 2-year Treasury note yield however dropped 2 basis points to 3.91%.

Analysis
Goldman Sachs downgrades Schindler to Sell (Neutral) - Target CHF 210 (206)
Target price Pierer Mobility: Research Partners lowers to CHF 38.00 (45.70) - Buy
Jefferies raises Sika target to CHF 317 (310) – Buy

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