The Swiss Stock Exchange opened in the red zone on Wednesday morning, after ending on a positive note the day before. Market observers were impatiently awaiting the evening publication of the decision of the American Federal Reserve (Fed) at the end of the monetary policy committee as well as inflation data in the euro zone.
The Fed will most likely lower rates by 25 basis points (bps), agree most experts such as César Pérez Ruiz, director of information systems and head of investments at Banque Pictet. However, he notes “that inflationary fears remain high in a robust American economy. So it could be an ‘aggressive’ rate cut, before the Fed takes a break in January.
For Swissquote analyst Ipek Ozkardeskaya, this expected drop of 25 basis points, the United States “does not necessarily need it, in addition to the drop of 75 basis points made since September.” “US stock markets are at their highest, real estate prices are at their highest, the US national debt is at its highest, the US CPI is no longer progressing towards the 2% target, growth is strong and the job market is doing well,” she emphasizes.
John Plassard, expert at Mirabaud Banque, says markets will also closely monitor comments from Fed Chairman Jerome Powell and the update of the Dot Plots for signals on future policy.
Before the Fed, investors carefully analyzed British inflation figures. This continued in November a rise that began the previous month, to 2.6% over one year, an increase in line with economists’ expectations, according to data published Wednesday by the National Statistics Office (ONS).
These data are also closely scrutinized by the Bank of England (BoE), which had raised its key rate since the end of 2021 to combat this surge in prices, which has resulted in higher costs for both individuals and British businesses. more expensive credit, particularly real estate.
Market observers were also awaiting euro zone inflation data in November late this morning.
Around 9:05 a.m., the Swiss Market Index (SMI) dropped 0.37% to 11,697.28 points, the Swiss Leader Index (SLI) dropped 0.28% to 1935.66 points and the Swiss Performance Index (SPI) 3% to 15,573 points. Of the thirty largest valuations, nineteen were in the red and eleven were in positive territory.
Nestlé suffered the biggest losses (-0.9%), preceded by Swiss Re (-0.8%) and UBS (-0.7%). The major Swiss bank repaid before maturity an unsecured variable rate loan issued at the time by Credit Suisse. It has a value of 1.5 billion euros maturing in 2026.
Among the other heavyweights, Novartis and the good Roche both fell by 0.2%. The pharmaceutical and diagnostics giant Roche has obtained a CE marking of European conformity for a mass spectrometry device intended to significantly expand the range of tests available for its Cobas routine analysis platform.
At the head of the pack, we found Sandoz Group (+0.7%), Givaudan, whose price target UBS lowered to 4,380 francs, compared to 4,520 francs previously, as well as Adecco (+0.5% each).
On the broader market, the Uranian industrialist Dätwyler shed 1.6%. The specialist in waterproofing solutions has prescribed an austerity course for the period 2025-27 intended to revive its growth and revitalize its profitability. He estimates the single cost of the “Forwardnow” program at 38 million francs, for a long-term reduction in the cost base of 24 million per year.
