The Geneva-based flavour and fragrance manufacturer Givaudan continued the strong growth of the first half of the year in the third quarter. The industry leader further benefited from significantly higher sales volumes. Overall, sales rose by 7.2 per cent to 5.64 billion Swiss francs in the first nine months, as the supplier of flavours and fragrances for food, perfumes, household and personal care products announced on Thursday. In organic terms, i.e. adjusted for acquisitions and disposals as well as currency effects, Givaudan even grew by 13.0 per cent. Organic growth had already reached 12.5 per cent in the first six months. However, negative currency effects, which cost 324 million Swiss francs in sales, continued to hold back growth. Givaudan does not present profit figures after nine months. As usual, Givaudan is not giving a concrete outlook for the current year. However, the medium-term targets remain unchanged. Accordingly, Givaudan is aiming for organic sales growth of at least 4 to 5 per cent per year. In addition, free cash flow should amount to at least 12 per cent of sales.

The Swiss stock market closed in positive territory on Wednesday. The SMI increased by 0.9 per cent to 12,123 points. Among the 20 SMI stocks, there were 15 price gainers and five price losers. A total of 13.87 (previously: 16.31) million shares were traded. The market was supported by the defensive heavyweights Novartis (+1.7%), Roche (+1.3%) and Nestlé (+0.7%). Insurance stocks held up surprisingly well in view of Hurricane Milton, which is approaching the US state of Florida. Swiss Re and Zurich Insurance added 1.9 and 0.3 per cent respectively. Among small caps, Docmorris fell by 3.2 per cent after the previous day's gains. Berenberg had downgraded the share. According to the analysts, Docmorris has underperformed its competitor Redcare in terms of sales growth of prescription drugs since the launch of CardLink in May.

Europe
The European stock markets posted gains on Wednesday, ahead of the release of the minutes of the latest Federal Reserve (Fed) meeting and new inflation figures for the United States. The Stoxx Europe 600 index climbed 0.7% to 520.1 points. In Paris, the CAC 40 and SBF 120 rose by 0.5% each. The DAX 40 in Frankfurt gained 1% and the FTSE 100 added 0.7% in London. Reinsurer Scor (+2.5%) announced on Wednesday that it had filed its proposed takeover bid for listed property investment company MRM with the Autorité des marchés financiers (AMF). Tyre manufacturer Michelin (-1.7%) is preparing to temporarily shut down some of its factories in France due to the slowdown in demand for its products. German automotive supplier Continental (+7.2% in Frankfurt) was reassuring about its ability to achieve its annual targets despite the weakness of the automotive market and the difficulties of its ContiTech division. In its wake, its French rivals Forvia and Valeo advanced by 4.3% and 3% respectively in Paris. Mining group Rio Tinto (+0.1% in London) confirmed on Wednesday that it had reached an agreement to acquire lithium producer Arcadium Lithium for 6.7 billion dollars, a deal that will make it one of the largest producers of a metal essential for electric car batteries.

United States
The S&P 500 and Dow Jones Industrial Average closed at records Wednesday, with attention turning to the start of earnings season. Third-quarter results season gets under way in earnest Friday, when several of the largest banks are set to report. Investors have been largely upbeat lately, with strong economic data offsetting rising tensions in the Middle East and uncertainty over the U.S. elections. Minutes from the Federal Reserve’s September meeting showed that officials were divided over how much to cut rates, but most favored the larger, half-point cut. “The Federal Reserve appears to remain comfortable with where inflation is and trending,” Vanguard senior U.S. economist Josh Hirt said after the minutes were released. Stock and bond markets reacted little. Meanwhile in Asia, China’s stimulus-driven rally continued to unwind, weighing on U.S.-listed companies like Alibaba. Indexes rose on Wednesday, with the Dow industrials out front, closing up 1% to a record high 42512. The S&P 500 added 0.7% to also close at a record. Boeing shares fell after negotiations broke down between the airplane-maker and its largest union. Arcadium Lithium shot up by 30.9 per cent. Rio Tinto is buying the company for 6.7 billion dollars, making it one of the leading producers of an important raw material used in batteries for electric vehicles. Helen of Troy jumped 17.9 per cent as the consumer goods company performed better than expected in the second quarter. Cruise stock Norwegian Cruise Line rose 10.9 per cent after Citi upgraded it to ‚buy’. The Securities and Exchange Commission said it is monitoring the impact of Hurricane Milton on capital markets and may grant relief from filing deadlines and other regulatory requirements.

Asia
In Asia, major indexes broadly closed with gains on Thursday. In Hong Kong, the Hang Seng Index rose by 4.2 per cent. The Shanghai Composite climbed by 3.0 per cent having fallen by 6.6 per cent the previous day. A tailwind came from the People's Bank of China, which, as previously announced, provided the market with fresh liquidity. Meanwhile in Tokyo, the Nikkei index increased by 0.2 per cent to 39,355 points. In Seoul, the Kospi advanced by 0.6 per cent after a one-day public holiday break. Shares in vaccine developer SK Bioscience gain 2.2 per cent following the company's acquisition of a stake in US biotechnology company Fina Biosolutions.

Bonds
U.S. bond yields were edging higher Wednesday as investors digested minutes from the Federal Reserve’s previous monetary policy meeting and awaited consumer price inflation data due Thursday. The 10-year Treasury note yield recovered 4 basis points to 4.075%. The 2-year Treasury note yield rose by 5 basis points to 4.024%.

Analysis
Berenberg downgrades DocMorris to Hold (Buy) - Target CHF 36 (125)
Price target Nestlé: JP Morgan cuts to CHF 85 (95) - Neutral
Rating Lonza: Goldman Sachs resumes with Buy - target CHF 645

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