Zurich (awp) – The Swiss Stock Exchange managed to increase its gains on Friday morning despite significantly reduced activity, with many participants being absent due to the Ascension Bridge. No corporate news came to feed the market and we will have to wait until the afternoon to see the session come alive with macroeconomic indicators across the Atlantic and several speeches from members of the Federal Reserve (Fed).
“European stock markets reinforced their gains on Friday (…), investors applauding company results and economic data,” noted Pierre Veyret in a note. According to the Activtrades analyst, “risk appetite continues to strengthen, taking the indices towards one of their best weekly performances since the start of 2024”.
Expectations of a reduction in key rates continue to focus attention on macroeconomic data, said Roman Bättig, head of economic research at the Graubünden Cantonal Bank (GKB). Next Tuesday, investors will watch for producer prices and Wednesday for consumer prices in April in the United States.
“Deflationary trends are expected to continue, but in small steps (and) the possibility of a first rate cut by the Fed in September remains intact,” he added in a commentary.
In terms of economic indicators, the United Kingdom emerged in the first quarter from the recession into which it fell at the end of 2023, its gross domestic product (GDP) having increased by 0.6% over the first three months of the year. Later this morning the minutes of the latest monetary policy meeting of the European Central Bank (ECB) will be published.
Like other European markets, the Swiss Stock Exchange increased its gains. At 10:40 a.m., the flagship SMI index was up 0.99% at 11,716.60, after opening up 0.51%. The SLI gained 0.98% to 1913.69 points and the SPI increased by 0.93% to 15,621.24 points.
A few rare star stocks remained in the red: Kühne+Nagel (-1.2%), non-dividend treaty of 10 Swiss francs, SIG (-0.3%), UBS (-0.3%) and Lindt ( -0.1%).
However, Oddo BHF analysts have slightly raised the three-key bank’s price target.
Gainers in the session included Swiss Re (+1.9%), Holcim (+1.9%) and Richemont (+1.8%).
On the general SPI index, Temenos (+0.1%) was climbing again despite a non-dividend treatment of 1.20 francs. The shareholders of the banking software publisher, meeting on Wednesday in a general meeting, rejected the management’s 2023 remuneration report during a consultative vote. More than 66% of unit owners opposed it, while some 33% approved it.
Ems-Chemie (+0.7%) was sought after, after an increase in the price target by Berenberg.
VP Bank (+1.6%) was rising, after the surprise announcement on Wednesday evening of the departure of boss Paul Arni with immediate effect.
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