The Swiss stock market opened clearly in the green on Monday, attempting a rebound after closing sharply down last week following the election of Donald Trump as president of the United States.
The main American indices ended up on Friday evening and on new records, driven by the optimism sparked by the victory of Donald Trump and a reduction in key rates by the American Federal Reserve (Fed). Conversely, the indices of the Old Continent ended the week sharply lower, cooled by the risks of trade war.
“If the new president (of the United States) favors tax cuts over customs duties, American stocks will be able to continue riding a wave of optimism,” commented Swissquote analyst Ipek Ozkardeskaya. Otherwise, market optimism would be short-lived, she added in a commentary.
In a week that promises to be relatively calm, investors will mainly have macroeconomic data to analyze.
On Tuesday, the ZEW index for November on investor sentiment in Germany will be in the spotlight, followed on Wednesday by inflation (CPI) in October in the United States. On Thursday the unemployment rate and industrial production in the euro zone will be published and on Friday economic growth in the 3rd quarter in Japan and Switzerland, as well as retail sales across the Atlantic.
Almost all the stars in green
Around 9:12 a.m. on the Swiss Stock Exchange, the flagship SMI index rose firmly by 0.84% to 11,896.40 points, after closing on Friday down 1.0%. The SLI gained 0.9% to 1959.93 points and the SPI gained 0.76% to 15,851.17 points.
Almost all of the star stocks were draped in green, with the exception of Lindt (-0.6%) and Swisscom (-0.4%). The industrial chocolate maker was facing a collective complaint in the United States, while Goldman Sachs lowered the historic operator’s price target.
At the other end of the table, Swiss Re (+3.5%), VAT Group (+1.6%) and Lonza (+1.4%) were favored by investors. The reinsurer, which publishes its quarterly results on Thursday, saw its recommendation increased to “buy”, from “sell”, by UBS, as did the price target.
Luxury giants Richemont (+1.2%) and Swatch Group (+1.2%) also progressed. After its half-year results published last Friday, HSBC analysts raised the recommendation of the Genevan sector giant to “buy”, compared to “hold” previously. Several other experts have adjusted the price target.
Swiss
Related News :