The Swiss stock market was moving sideways on Thursday as midday approached. Investors were impatiently awaiting US inflation, in the hope that it would give some indication of the monetary policy of the Federal Reserve (Fed), and the Holy Grail, a rate cut.
“Overall, risk appetite remains low and market volatility is increasing while uncertainty persists on several fronts, making the overall situation difficult for investors to assess,” summarized Pierre Veyret of ActivTrades, “awaiting new macroeconomic developments” particularly in the United States with data on American durable goods, the first unemployment claims and data on GDP, before inflation on Friday, which should give grain to grind to the Federal Reserve bankers.
“What the Fed doves want to see is reasonably slowed economic growth combined with reduced inflation. The risk is to see a slowdown in growth with an insufficient decline in inflation,” underlined Ipek Ozkardeskaya of Swissquote.
In the euro zone, credits granted to households and businesses slowed their growth in May, before the first cut in interest rates, indicated the European Central Bank (ECB).
At 10:55 a.m., the SMI gained 0.12% to 12,030.00 points, the SLI 0.15% to 1949.64 points and the SPI 0.10% to 15,967.35 points. Among the thirty main stocks, 19 advanced and eleven retreated.
The good Schindler (+1.3%), Sandoz (+1.3%) and Straumann (+1%) made up the podium.
Among the heavyweights, the good Roche was ahead of its peers (+0.4%) ahead of Nestlé (+0.1%), while Novartis lost just 0.02%. Roche has welcomed new “prequalification” designations granted by the World Health Organization (WHO) for its human papillomavirus screening device on its Cobas terminal.
UBS (-0.3%) is reorganizing its global wealth management unit to optimize collaboration with investment banking and asset management entities.
Kühne +Nagel (-0.7%) is expanding its warehouse network for the American healthcare market, with four new transshipment facilities, particularly for medicines and vaccines. The amount of the investment has not been disclosed.
Swatch Group shed 1.5%. Both UBS and Goldman Sachs cut their respective price targets but kept their recommendations at “neutral”. The major bank is alarmed by excess production capacity, high inventories and the unfavorable effect of currencies. His American counterpart estimates that the drop in Swiss watch exports will be reflected in the figures of the Bienne group.
SIG remained at the bottom (-1.7%).
On the broader market, Stadler Rail gained 1.7% the day after an order worth almost 720 million francs in Poland.
Temenos was stable. The Petrus Advisers fund lowered its stake in the banking software specialist to 3.841% compared to 5.123% previously. The British fund had made itself known by increasing its demands on the Genevan.
Landis +Gyr was penalized (-2.7%) by its non-dividend treatment of 2.25 francs.
Carlo Gavazzi plunged 8.1% after reporting declining annual results and a dividend cut by a third. A recovery is not expected in the short term.
Relief Therapeutics was suspended from trading. (AWP)
