The Swiss stock market plunged into the red on Monday morning, failing to rebound after the heavy losses suffered at the end of last week. Investors are still cooled by the statements of the President of the American Federal Reserve Jerome Powell, who suggested a less significant reduction than expected in key rates.
“Even if the next data on the labor market [aux Etats-Unis] disappoint, expectations of an acceleration in American inflation will certainly calm hopes of a further rate cut,” said Ipek Ozkardeskaya in a note. For the Swissquote analyst, future US President Donald Trump’s announcements in favor of growth and his threats to raise customs taxes “risk pushing inflationary pressures even further”.
“It seems more and more obvious on the European equity markets that the anticipated weak economic growth is gradually becoming a reality and that the path to better times could be more difficult than anticipated,” said Frank. Sohlleder, ActivTrades analyst.
Apart from various investor meetings organized this week by Nestlé, SGS and Zurich Insurance in particular, the speakers will mainly have macroeconomic data to scrutinize. On Tuesday, the euro zone will publish its inflation figures for October, followed on Wednesday by the United Kingdom and on Friday by Japan. This same day, the PMI indices for November in Germany, the euro zone and the United States will also be revealed.
Around 10:37 a.m. on the Swiss Stock Exchange, the flagship SMI index fell by 0.12% to 11,612.40 points, after opening with a tiny increase of 0.02%. The SLI dropped 0.10% to 1910.26 points, while the SPI lost 0.15% to 15,46.46 points.
The star stocks showing in the green were now in the minority, with Lindt (+1.3%), Swatch Group (+1.3%) and Nestlé (+1.2%) at the top of the table.
Swiss Re (+0.7%) made modest progress. Several analysts raised the reinsurer’s price target after publishing its quarterly results last week.
Lonza (+0.5%) remained in positive territory, after being battered on Friday (-8.3% at the close), like other global pharmaceutical stocks, by the probable appointment to the Ministry of Health of the States -United by Robert F. Kennedy Jr, notoriously skeptical of vaccines.
The biggest losses were recorded by VAT Group (-2.0%), ABB (-1.7%) and Geberit (-0.9%). Jefferies, however, increased the price target for the sanitary equipment manufacturer, while confirming the “underperform” recommendation.
Roche (-0.4%) did not leave the red zone. The Basel-based pharmaceutical giant has obtained CE marking for its new ovarian cancer screening test. This test is now widely available in Europe.
On the broader market, DKSH (+0.3%) slowed down its efforts. The distribution facilitator confirmed its 2024 objectives. The Zurich group presented its medium-term roadmap in London, based on the strategic priorities of growth, margin expansion and acceleration of mergers and acquisitions.
Avolta (+1.5%) accelerated on the other hand. The travel retailer and restaurant has secured a 1,000 m2 concession at Shenzhen Bao’an International Airport, north of Hong Kong.
For its second day of trading, Sunrise (-3.6%) was still falling. The operator signed its return to the Swiss Stock Exchange on Friday, after leaving more than three years ago. (AWP)
