The Swiss Stock Exchange started the week on the right foot, in the wake of Wall Street’s favorable close on Friday. Investors were visibly reassured by the publication of US employment figures for September, which suggested a soft landing for the world’s largest economy.
The main American indices ended Friday’s session higher after the publication of American employment figures for September, investors having “put aside” their concerns about tensions in the Middle East, notes John Plassard, of Mirabaud Banque .
Data relating to the American labor market was undoubtedly the biggest surprise for the markets last week, adds the expert. Job creations far exceeded expectations, amounting to 254,000, against forecasts of 150,000 and the unemployment rate also fell, from 4.2% to 4.1%. The total number of jobs created last month was also revised upwards, from 142,000 to 159,000.
After two months of weaker-than-expected jobs reports and downward revisions, the data was a welcome change in tone for markets. The data reinforces Fed Chairman Jerome Powell’s view that the economy is “strong,” suggesting the Federal Reserve is in no rush to cut interest rates, dampening hopes for a significant reduction in rates in November.
Recession expected in Germany
In terms of early macroeconomic information, industrial orders in Germany fell significantly more than expected in August, marking the start of a week where the government should, according to the press, forecast a recession for the whole year. This Monday, investors will still be looking at August retail sales in the euro zone as well as the speeches of several officials from the ECB and the Fed.
After opening up 0.31%, the SMI progressed very slightly in the very first exchanges, noting shortly before 9:10 a.m. at 12,038.79 points, a gain of 0.38%. The SLI for its part gained 0.41% to 1976.33 points and the expanded indicator SPI 0.37% to 16,093.61 points.
Of the thirty stocks making up the Swiss Leader Index, only six lost ground, the other 24 gaining. At the top of the table, Richemont (+1.6%) escaped alone in the lead, ahead of UBS +1.2%) and the Bienne watchmaker Swatch Group (+0.7%).
The Geneva-based luxury giant has announced an agreement with MYT Netherlands for Mytheresa to acquire Yoox Net-à-Porter (YNAP) to create a global multi-brand digital luxury group. Completion of the transaction is expected in the first half of 2025 following approval of the usual conditions. The amount of the transaction has not been disclosed.
As for the heavyweights of the rating, Nestlé (+0.5%) did well, while the two Basel pharma giants found themselves in the second half of the table, the good Roche taking 0.1% and the registered Novartis yielding 0.1%.
Swiss Re (-1.5%) inherited the red lantern, behind Kuehne +Nagel (-0.4%), Lonza (-0.3%), Novartis, Givaudan (-0.1%) and Sandoz (- 0.03%).
In the broader market, Perrot Duval (-11.5%) and Meier Tobler (+8.2%) showed the largest variations.
Among the little information at the start of the morning, Kudelski (-0.8%) announced that its subsidiary Nagravision was extending its collaboration with DishTV India, without financial details. Temenos (stable) has appointed Barb Morgan as Chief Product and Technology Officer with immediate effect. (AWP)
