The Swiss Stock Exchange was unable to take a direction on Wednesday as midday approached. Despite the new records posted the day before at the close on Wall Street, investors remained cautious, in a reduced flow of corporate news, while the administration of US President-elect Donald Trump is taking shape, the latter having already announced new customs taxes.
Tuesday’s publication of the minutes of the latest meeting of the US Federal Reserve (Fed) showed the central bank’s optimism about easing inflation and maintaining a robust job market , thus supporting the possibility of further reductions in interest rates, although at a measured pace, observes John Plassard, of Mirabaud Banque. Added to this was the decline in geopolitical tensions in the Middle East.
After months of intense conflict, including airstrikes and a ground invasion, the Israeli cabinet approved a ceasefire in Lebanon, which came into effect on Wednesday. Prime Minister Benjamin Netanyahu stressed that Israel remained committed to preventing Iran from acquiring nuclear weapons and warned Hezbollah against violating the deal.
“In Europe, the new appointments announced the day before by Donald Trump weighed heavily, the president-elect having appointed as White House Trade Representative (USTR) Jamieson Greer, a lawyer in international trade law who had already distinguished himself in a offensive policy against China. The latter served for four years as Donald Trump’s US trade representative and oversaw billions of dollars in tariffs imposed on both allies (including Europe) and adversaries, such as China. continues John Plassard.
This announcement comes at a time when Donald Trump is rekindling concerns about all-out trade wars by threatening China, Canada and Mexico to increase customs duties as soon as he comes to power on January 20.
In terms of today’s macroeconomic information, French household confidence deteriorated again in November, the indicator summarizing it having lost three points to 90, in particular due to increased fears about unemployment. In Switzerland, construction activity suffered a decline over the first nine months of the year. The decline can be attributed to the construction sector, while civil engineering recorded growth.
Still in Switzerland, the short-term outlook for the economy is “increasingly cautious”, according to analysts interviewed as part of the publication of the UBS-CFA indicator. They are revising upward their inflation forecasts for Switzerland, the euro zone and in particular the United States.
Investors will continue to focus in the afternoon on US inflation in October (PCE), the second estimate of US growth for the third quarter and the PMIs for the Chicago region.
On the side of the Swiss Stock Exchange, the SMI, after having opened very slightly in the red, remained hesitant all morning, the flagship index showing shortly before 11:00 a.m. a very slight decline of 0.08% to 11,627.23 points. The SLI also remained in the negative zone, dropping 0.11% to 1918.8 points, while the broader SPI indicator also dropped barely 0.03% to 15,496.20 points.
Of the 30 stocks making up the Swiss Leader Index, 11 gained ground and 16 lost ground, while Sandoz Group, SIG Group and Swisscom stood still. On the losing side, Logitech (-1.8%) retained the red lantern, while the day before computer manufacturers HP and Dell presented rather disappointing results. VAT Group (-1.0%) was also struggling, as were Sika (-0.9%), Swatch Group and Richemont (both -0.8%).
At the top of the table, Adecco (+1.8%) had taken over the top step of the provisional podium from Lindt (+1.2%), with Lonza (+1.0%) in third position ahead of Sonova (+1). .0%) and Straumann (+0.7%). The three heavyweights Roche (+0.4%), Nestlé (+0.3%) and Novartis +0.1%) were also placed on the right side of the bar. Novartis has received an extension of approval from the European Commission for its Kisqali breast cancer treatment, significantly increasing the population of patients likely to be prescribed this treatment.
As for the registered name of the Basel pharmaceutical subcontractor, it benefited from the start of coverage by Redburn, this being accompanied by a purchase recommendation, according to well-informed brokers.
On the broader market, Idorsia rebounded by 8.3%. The Rhine laboratory has entered into exclusive negotiations on the global rights to its treatment for resistant hypertension aprocitentan, approved under the brands Tryvio in the United States and Jeraygo on the Old Continent. The exclusivity bonus of $35 million agreed for this purpose should enable the company, which is struggling with its liquidity, to cover its financial obligations until next year. Further cuts in staff numbers are also planned. (AWP)
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