The Swiss stock market was in balance on Tuesday morning at the start of the session, after closing the day before on a clearly positive note. Investors turned their eyes to the Fed Minutes
The New York Stock Exchange ended sharply lower on Tuesday, strained by the rise in bond rates and the decline of certain giant capitalizations in the technology sector. “The yield on the American 10-year, for example, is ‘dangerously’ approaching 5% and its 2007 levels,” highlighted John Plassard of Mirabaud Banque in his daily stock market commentary.
Raiffeisen bank economists noted that due to this situation, “on the interest rate futures market, we no longer expect even two interest rate cuts by the Fed this year.” “A cut in May is nothing more than a coin toss, and many think that the Fed could wait until June to announce its next rate cut,” said Swissquote expert Ipek Ozkardeskaya.
“ISM non-manufacturing prices in the United States increased to 64.40 points in December, compared to 58.20 points in November 2024. This is the highest level since February 2023, which could ‘clear the board’ before the “Donald Trump’s arrival in power in less than two weeks,” Mr. Plassard also noted.
In terms of today’s first macroeconomic information, German industrial orders fell again between October and November, by 5.4%, confirming the setbacks in this crucial sector for Europe’s largest economy. Investors will still be looking at the Minutes of the Fed’s monetary meeting in the evening.
Around 9:05 a.m. on the Swiss Stock Exchange, the Swiss Market Index (SMI) rose 0.1% to 11,842.6 points, the Swiss Leader Index (SLI) 0.19% to 1,960.02 points and the Swiss Performance Index (SPI) increased 0.12% to 15,803.31 points. Of the top thirty valuations, fifteen were rising, thirteen were falling, and two had not yet been traded.
Among the heavyweights, the good Roche gained 0.5%, after the pharmaceutical giant announced the purchase of 66.11% of the share capital of Poseida Therapeutics as part of its buyout offer launched in mid-December. Ultimately, the company will become a subsidiary of the Basel group and its shares will be delisted from the Nasdaq. Novartis gained 0.1% and Nestlé lost 0.4%.
In the broader market, corporate news was still very brief after the end-of-year holidays, awaiting the annual results season which should start soon.
Basilea gained 1.1% after the pharmaceutical laboratory reported an increase in sales of its antifungal Cresemba (isavuconazole). These amounted to 533 million dollars (483 million in today’s francs) between October 2023 and September 2024, i.e. growth of 20% in annual comparison.
The title of the inspection and certification giant SGS, which acquired for an undisclosed amount the Ohio greenhouse gas emissions calculator Aster Global Environmental Solutions, dropped 2.1%.
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