Zurich (awp) – The Swiss stock market ended in the red on Wednesday. After having once again been in the green in the morning, the SMI reversed the trend and started to fall again, falling below the symbolic bar of 12,000 points at its lowest of the day, to finish just above this level .
In New York, Wall Street moved in a dispersed order in the morning, technology in the green while investors wonder about the trajectory of rates after comments from members of the Federal Reserve (Fed), while awaiting the publication of new indicators Americans.
As we approach the end of the first half of the year, several Fed governors and regional presidents have outlined their scenarios for the rest of the year regarding the evolution of inflation and unemployment as well as the possible monetary response.
The hypotheses range from “an orderly decline in inflation allowing the Fed to slowly abandon its restrictive policy to a pronounced slowdown (via) inflation and growth that remain strong, meaning high rates for longer, or even further increases,” summarized Art Hogan of B. Riley Wealth Management.
At the macroeconomic level, household confidence declined in France in June, penalized in particular by greater pessimism about future living standards. In Germany, the GFK barometer of consumer morale also weakened, while the rise in inflation in May revived the feeling of uncertainty.
The short-term outlook for the Swiss economy is moderate, according to analysts interviewed as part of the publication of the UBS-CFA indicator. Also, over the next six months, experts expect the franc to appreciate further against the euro and the dollar.
The SMI ended down 0.58% at 12,015.72 points, with a low of 11,984.33 points and a high of 12,163.23 points. The SLI lost 0.42% to 1,947.09 points and the SPI 0.56% to 15,947.72 points. Of the 30 leading stocks, 18 fell and 12 advanced.
Dental implant specialist Straumann (+2.7%) topped the group of winners, ahead of Sonova (+1.2%) and Sika, SIG Group and Kühne+Nagel (all +1.1%).
The logistics specialist appears to have benefited indirectly from the solid performance of FedEx in the United States, which published results above expectations for the fourth quarter of its staggered annual financial year on Tuesday and saw its share price soar.
The pharmaceutical heavyweight Novartis (+0.04%) gained a little ground, while Roche (good -1.5%, buoyant -1.3%,) weighed heavily on the index, as did a slightly less clearly, Nestlé (-1.1%).
The good Lindt (-3.0%) finished bottom.
Richemont (-1.5%) shares the second place of the biggest losers with the good Roche.
The Geneva luxury specialist saw its price target lowered by the Royal Bank of Canada. The analyst expects strong growth in Japan, as well as positive figures for the United States and Europe, but the Asia-Pacific region is expected to see a decline. The momentum in jewelry is expected to continue, while watchmaking could decline given Swiss watch export data in recent months.
Insurer Zurich Insurance (-1.1%) announced it is acquiring AIG’s global personal travel insurance and assistance business for $600 million, plus a possible additional earn-out. The transaction is expected to close before the end of the year.
The Federal Court confirmed the sanction imposed by the Competition Commission on Swisscom (-0.6%) in the context of the dispute over sports broadcasts. The blue giant will have to pay a fine of 71.8 million Swiss francs.
On the broader market, the operator of shops and restaurants for travelers Avolta (-1.5%) announced the obtaining of a new airport concession in the Asia-Pacific zone, in Macau, valid for a period of seven years.
Distribution facilitator DKSH (-1.6%) has signed a contract with generic manufacturer Sunward Pharmaceutical, based in Singapore. DKSH will take care of the logistics and marketing of the products in Malaysia. No financial details have been leaked.
Geneva-based banking software publisher Temenos (-1.5%) has placed its subscription services with Canadian Bank Haventree. The financial terms of the transaction have not been disclosed.
Glass packaging producer Vetropack (-0.7%) announced on Wednesday the immediate cessation of production at its St-Prex site, initially scheduled for August 2024. Management justifies “this irreversible measure” by the poor condition of the melting tank and by a reduced workforce that no longer guarantees the safe operation of the plant.
rp/al
