Zurich Stock Exchange: in the red on the eve of American employment

Zurich Stock Exchange: in the red on the eve of American employment
Zurich Stock Exchange: in the red on the eve of American employment

Zurich (awp) – The Swiss stock market ended on a negative note on Thursday, the day after the status quo of the American Federal Reserve (Fed) and on the eve of American employment statistics in April. Investors focused on Swisscom, which revealed its half-year results, as well as macroeconomic data in Switzerland.

In New York, Wall Street gained ground in the morning, remaining in good spirits after the Fed’s announcements the day before and on the eve of American employment figures.

According to Quincy Krosby of LPL Financial, Fed Chairman Jerome Powell said a rate hike was “unlikely” and was very important to the market “because some believe it is necessary to raise rates further, to slow down the economy” and curb inflation.

In Switzerland, consumer prices experienced a further surge of 1.4% in April, after a pause observed in March. On a monthly basis, prices increased by 0.3% last month. The Swiss manufacturing industry saw its purchasing managers index (PMI) fall in April to 41.4 points, compared to 45.2 points in March.

The OECD has for its part adjusted its growth forecasts for the Confederation. Gross domestic product (GDP) is expected to grow by 1.1% in 2024, before rising to 1.4% in 2025. Inflation will temporarily increase towards the end of 2024, driven by increases in rents and prices. electricity, but will nevertheless remain within the 0-2% range set as an objective by the Swiss National Bank (SNB). The unemployment rate will increase slightly to 4.4%.

The SMI ended down 0.46% at 11,209.63 points, with a low of 11,188.72 and a high of 11,301.35 at the start of the session. The SLI lost 0.35% to 1832.75 points and the SPI 0.43% to 15,002.28 points. Of the 30 star stocks, 15 fell, 14 advanced and Sika ended up in balance

VAT Group (-4.9%), Straumann (-4.1%) and Roche (good -3.0%, buoyant -2.7%) fell most sharply.

Nestlé (-0.4%) and Novartis (-0.2%) held up better than Roche.

Novartis announced the acquisition of the American biotechnology company Mariana Oncology. An initial payment of one billion dollars will be made by the Basel group. Additional payments of up to 750 million will follow upon the achievement of predetermined milestones.

Despite falling sales, the blue giant Swisscom (-1.9%) increased its net profit in the 1st quarter. The operator, which announces an appeal before the Federal Administrative Court (TAF) against the decision of the Competition Commission (Comco) concerning the implementation of its optical fiber network, generated a net result of 455 million Swiss francs (+2.9%).

In the winning camp, Logitech (+3.5%) precedes Julius Bär (+2.8%) and Sonova (+1.8%) on the podium.

Logitech once again benefited from its solid results published on Tuesday and did not suffer from the lowering of its recommendation to “neutral” by JPMorgan.

The Zurich wealth manager benefited from a price target increase by Citigroup.

UBS (+0.1%) also finished in the green. According to several press articles, Credit Suisse could be fined in South Korea in connection with an illegal short-selling affair. The financial market supervisory authority of the country of calm morning, Financial Supervisory Service (FSS) informed the two-sail bank, now a subsidiary of UBS, of a potential sanction in this regard of 50 billion won (33 million of Swiss francs).

On the broader market, Hochdorf (+140%%) continued its stratospheric surge. On Tuesday, the new Italian shareholder Newlat, who now holds almost 11% of the capital of the Lucerne group, wants to restructure the company in difficulty. A recovery project will be proposed to the dairy processor.

Vetropack (-0.8%) promised to carry out a “thorough evaluation” of its staff’s proposals to avoid the closure of the Saint-Prex glassworks.

rp/rr

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