Zurich (awp) – The Swiss stock market remained in the red on Monday morning, feverishly waiting before monetary policy announcements from the American Federal Reserve (Fed) in two days. In addition to some corporate information, investors had a fair amount of macroeconomic data to analyze.
Following in the footsteps of the ECB and the SNB, the American central bank must announce Wednesday evening (Swiss time), according to the majority of observers, a further reduction in key rates of a quarter of a percentage point.
This new rate cut by the Fed, widely anticipated, should not create any volatility, underlined Jochen Stanzl, analyst at CMC Markets. The economic data, particularly on inflation and employment, are largely in line with expectations. “But with Donald Trump as president, the potential for surprise should increase again for this data,” he warned.
On the macroeconomic front, retail sales growth in China slowed in November, a sign of continued sluggish consumption despite some semblance of a recovery the previous month. In Switzerland, the consensus of economists from the KOF institute expects growth of 1.4% this year and inflation of 1.1%. In 2025, GDP should slow to +1.3% and consumer prices to 0.6%.
Investors will also be watching the December flash composite PMI index in the eurozone and the United States. “If the figures were to be better than expected and surprise the markets, this would have a beneficial effect on European stock markets this Monday,” said Frank Sohlleder, analyst at ActivTrades.
Around 10:50 a.m., the flagship SMI index dropped 0.22% to 11,668.70 points, after opening down 0.15%. The SLI fell by 0.20% to 1934.49 points and the SPI lost 0.26% to 15,541.17 points.
The majority of star stocks remained in the red, with the largest declines still being recorded by Swatch Group (-1.7%), which amplified its losses, SIG Group (-1.6%) and Straumann (-1.1%). . The Bienne watchmaker was probably suffering from the slowdown in retail sales in China in November.
Nestlé (-0.8%) was penalized by a new disappointment in France. Its subsidiary Nestlé Waters must consider ending the production of natural mineral water Perrier, in the south of France, due to health risks, according to a confidential report revealed by the French newspaper Le Monde and Radio France.
The two other heavyweights Roche (+0.2%) and Novartis (-0.1%) were heading in opposite directions. Roche has obtained authorization from the regulator Swissmedic for a new presentation of its flagship ophthalmic treatment Vabysmo (faricimab) in a pre-filled syringe.
SGS (-0.1%) acquired, for an undisclosed amount, the Friborg start-up CertX and its ten employees.
Holcim (-1.0%) ended its share buyback program initiated in mid-March, collecting 12.2 million of its own shares, or 2.1% of the share capital, for 1 billion francs Swiss.
Conversely, Lonza (+1.1%), Sandoz Group (+0.7%) and UBS Group (+0.5%) remained at the top of the ranking. The supplier to the pharmaceutical industry benefited from an increase in its purchase recommendation by Stifel.
In the broader market, Wisekey (+62.8%) accelerated even further. The launch of the satellite from Wisesat.space, a subsidiary of the Geneva-based cybersecurity specialist, is scheduled for January 14.
Basilea (+6.3%) took off. The pharmaceutical laboratory has concluded an agreement with the American Innoviva Specialty Therapeutics for the marketing of the antibiotic Zevtera in the United States. Basel will receive an initial payment of $4 million, tiered royalties on net sales of between 15 and 25 percent and sales milestone payments of up to $223 million.
Relief Therapeutics (+12.8%) also increased the pace, after a study highlighting the effectiveness of the Golike product.
Galderma (+3.1%) was popular among investors, driven by an increase in the buy recommendation issued by UBS analysts. The group also obtained approval of Nemluvio (nemolizumab) from the United States Medicines Agency (FDA).
Polypeptide (+2.2%) announced the commissioning of its new solid peptide synthesis line in Braine l’Alleud, south of Brussels.
Siegfried (-4.1%) on the other hand fell significantly, penalized by a lowering of recommendation for sale from Stifel.
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