The Swiss Stock Exchange confirmed its recovery Monday morning, after closing last week in sharp decline following the election of Donald Trump as President of the United States. The session was relatively quiet with no major corporate news.
“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.
Public support for a faltering Chinese economy also interested investors, with some fearing that the measures announced by Beijing would not be enough to offset the fiscal tightening promised by the American president-elect and revive the Chinese economy, underlined the Activtrades analyst, Frank Sohleder.
At the same time, the European Union is also considering customs duties on Chinese products to curb the import of electric cars, which could lead to retaliatory measures on the Chinese side. The framework conditions of the market will thus be rewritten, influencing company profits and therefore the stock markets, he warned.
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.
The stars stay green
Around 10:56 a.m. on the Swiss Stock Exchange, the flagship SMI index rose firmly by 1.07% to 11,923.40 points, after opening up 0.72%. The SLI gained 1.2% to 1965.51 points and the SPI gained 1.01% to 15,889.47 points.
Almost all of the star stocks remained in the green, with the exception of Lindt (-0.2%), Swisscom and Kuehne +Nagel (both stable). The industrial chocolate maker failed to defeat 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 (+4.1%) remained in the lead and increased its gains, followed by Sika (+2.3%) and Sandoz Group (+1.9%). 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 (+1.3%) and Swatch Group (+0.5%) 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.
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