UBS shares experienced a significant increase of 3.8%, which is the largest in two months. This surge was a result of an optimistic outlook provided by BNP Paribas analyst Jeremy Sigee.

Sigee upgraded UBS from "neutral" to "outperform" and also raised the target price from 27.5 CHF to 35 CHF. The analyst cited expectations of increased stock buybacks as the reason for this upgrade.

Sigee addressed concerns about the impact of revised Swiss capital rules, stating that these concerns are exaggerated. He believes that capital releases from UBS's overseas subsidiaries could help offset any potential negative effects of the new regulations. Although UBS may not fully assess the impact of these regulations in its upcoming full-year results announcement, Sigee expects that the bank will provide clarity on capital releases, which could help reassure investors.