The Swiss stock market opens in the red

The Swiss Stock Exchange observed a race for cover on Tuesday at the start of the session, the day after the collapse of the Scholz government in Germany and on the eve of a last monetary policy decision of the year in the United States. The New York market once again ended in disarray on Monday, with the Nasdaq of technology stocks offering itself a new benchmark, when the flagship Dow Jones index lost ground.

“Europe seems to be sinking one country after another (…), since the early legislative elections this summer in France, which made the country ungovernable,” observes Ipek Ozkardeskaya, analyst at Swissquote.

In our latitudes, capital holders will be able to guide their investment strategies in the light of the economic conjectures of the dedicated Zurich academic center KOF and the State Secretariat for the Economy (Seco), both revised downwards. Also on the program are various German leading indicators, inflation in Canada and retail sales in Uncle Sam’s country.

However, most of the attention is already focused on the US Federal Reserve, which is generally expected to once again lower its key rates by 25 basis points to bring them within a range of 4.25-4.50%. Those responsible for the issuing institute could well moderate the enthusiasm of investors regarding the pursuit of a reduction in the cost of money.

At 9:10 a.m., the Swiss Market Index (SMI) dropped 0.54% to 11,639.61 points, the Swiss Leader Index (SLI) 0.52% to 1928.44 points and the Swiss Performance Index (SPI) 15,503.84% to points. Of the thirty largest valuations, only three remained more or less afloat.

The Valdo-California mouse giant Logitech (+0.3%) posted the most convincing gains, visibly riding the craze for technological stocks seen across the Atlantic. Followed by Swiss Life (+0.1%) and Nestlé, in balance. The Vevey food behemoth benefited from renewed coverage by Goldman Sachs on a buy recommendation.

Pharmaceutical heavyweights Roche (-1.1%) and Novartis (-0.9%), however, appeared at the bottom of the index. The red lantern went to Kuehne + Nagel (-1.2%), without any particular indication.

Sandoz shed 0.8%. The juggernaut of generic and biosimilar drugs has settled a collective complaint in the United States relating to pricing issues, for $275 million. An additional provision of 265 million was set up to cushion the impact of other procedures.

On the broader market, the real estate company Plazza (+2.3%) issued a positive warning on results for the year which is ending. (AWP)