The Swiss stock market remained in negative territory on Wednesday morning after opening lower. 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 cut rates by 25 basis points (bps), say 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 bps, the United States does not “necessarily need it, in addition to the drop of 75 bps 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.
A surprise is “unlikely,” according to Ricardo Evangelista at ActivTrades and traders should focus on the tone of the press conference following the meeting. John Plassard, expert at Mirabaud Banque, also believes that 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 discovered 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 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 credit costs for both individuals and British businesses. more expensive, particularly real estate.
Market observers were also awaiting euro zone inflation data in November late this morning.
Around 11:00 a.m., the Swiss Market Index (SMI) dropped 0.48% to 11,683.62 points, the Swiss Leader Index (SLI) dropped 0.41% to 1933.24 points and the Swiss Performance Index (SPI) 0.39% at 15,558.03 points. Of the 30 largest valuations, 22 were now in the red and eight in positive territory.
Sika suffered the biggest losses (-1.7%), ahead of Nestlé (-1.4%) and Swiss Re (-1.1%). Among the other heavyweights, pharmaceutical giants, Novartis fell by 0.2% and the good Roche by 0.1%. The latter 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.
UBS fell by 0.9%. The big bank will repay 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.
At the head of the pack, we found SGS (+1%), VAT Group, of which Goldman Sachs started covering at “neutral” with a price target of 363 francs, as well as ABB (+0.4%). The Zurich electrical engineering giant has acquired the Spanish Gamesa Electric for an undisclosed amount from Siemens Gamesa. The transaction, subject to customary authorizations, should be finalized in the second quarter of 2025.
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.
The industrial baker Aryzta lost 1.4% after announcing that it was launching the construction of a new large stone oven in Eisleben, Germany. This facility will produce bakery products for the German market and will be commissioned in the second half of 2025. (AWP)
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