The Swiss Stock Exchange started Monday’s session on the wrong foot, with the majority of star stocks moving in the red. In Switzerland, the consumer climate has improved in 2024 compared to the previous year.
In New York, Wall Street ended sharply lower on Friday evening, in the wake of the publication of better-than-expected US employment figures, which could delay the US Federal Reserve’s (Fed) rate cut timetable. . The Dow Jones fell 1.63%, the Nasdaq index fell 1.63% and the broader S&P 500 index dropped 1.54%.
“The December employment report, announcing 256,000 job creations against 155,000 expected, created a surprise. The unemployment rate fell to 4.1%, but wages disappointed slightly with annual growth of 3.9% compared to 4% expected. In response, 10-year inflation expectations have risen to recent highs, reflecting an expectation of persistent price increases,” writes Arthur Jurus, chief investment officer of Oddo BHF Switzerland, in a commentary.
In Germany, inflation rebounded to 2.6%. “This is partly due to methodological adjustments in the calculation of the price index. “German electricity production has fallen to its lowest level since reunification, raising concerns about the country’s ability to electrify its economy while reducing its energy consumption,” continues Arthur Jurus.
In Switzerland, the consumer climate has improved. The benchmark index published by the State Secretariat for the Economy (Seco) stood at -30 points in December 2024. It is thus 14 points higher than its level in December 2023.
The stars in the red
Around 9:30 a.m., the flagship SMI index fell 0.70% to 11,711.92 points, after closing Friday down 1.13%. The SLI lost 0.79% to 1934.70 points and the SPI fell 0.67% to 15,619.62 points. Of the thirty star stocks, twenty-five fell and only five advanced.
SIG Group (+0.8%) took the lead in the ranking. Richemont (+0.5%) and Swatch (+0.2%) completed the podium. The chocolate medal was awarded to Swisscom (+0.2%). Nestlé also increased its gains (+0.05%).
On the heavyweight side of the rating, Roche (-0.7%) fell into the red. The US Medicines Agency (FDA) has approved a screening test from the Rhine laboratory for type B lymphoma, making it possible to quickly diagnose this type of cancer.
Novartis (-0.7%) also lost weight. The Court of Appeals for the Federal Circuit (CAFC) in the United States, which has jurisdiction over patent disputes, has upheld the validity of the patent for the Basel pharmaceutical giant’s drug Entresto against heart problems.
-Still on the losing side, we found Lonza (-1%). The pharmaceutical contract manufacturer was commissioned by Swedish inhalation specialist Iconovo to develop a dry nebulized formulation of an experimental treatment for obesity.
Sonova (-1.4%), Partners Group (-1.5%) and Holcim (-2.7%) fell to the bottom of the ranking. The bottom red went to VAT Group (-2.7%). Stifel lowered the price target from 400 to 325 francs and Berenberg from 520 to 390 francs.
In the broader market, Idorsia fell 11%. The Rhine laboratory, in difficulties with its cash flow, plans to urgently invite the holders of the shares of a convertible loan of 200 million francs maturing on January 17.
Cicor followed the same downward trend but to a lesser extent, at -1%. The electronic components manufacturer has won an order worth 27.9 million francs as part of a new program for electronic devices used in fast jet planes.
Peach Property fell by 1.1%. The real estate company is offering to repay a tranche of 100 million euros of a loan with a volume three times larger, bearing interest of 4.375% and maturing next November.
Novavest advanced, on the other hand, by 0.6%. Several shareholder advisory companies have recommended that shareholders of the real estate company reject, at the next general meeting, the proposals of minority investor Caceis.
Finally, Molecular Partners increased by 4.9%. The Zurich laboratory announced that it would expand its existing partnership with the French biotechnology company Orano Med in the development of Darpin radiotherapies, genetically modified antibody proteins. (AWP)
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