“The announcement (…) already provides a foretaste of what threatens other countries,” warns Thomas Gitzel, chief economist at VP Bank. “The diversion of customs duties to target non-trade issues reflects a tendency of the Trump administration to use unconventional means to exert leverage,” observes Mark Haefele, head of investment for UBS wealth management.
With today’s agenda practically devoid of corporate results, capital holders will have to wait until after the close to orient their investment strategies in the light of the minutes of the last meeting of the main monetary policy committee of the Reserve federal government (Fed) in Uncle Sam’s country.
At 11:04 a.m., the Swiss Market Index (SMI) fell another 0.38% to 11.6277 points after having marked a daily low of 11,590 points in the first exchanges. The Swiss Leader Index (SLI) lost 0.39% to 1922.52 points and the Swiss Performance Index (SPI) lost 0.44% to 15,502.68 points. Of the thirty main valuations, five rose while four remained more or less afloat.
The giant of generics and biosimilars Sandoz (-1.9%) had relieved the human resources service provider Adecco (-1.1%) of the red lantern and competed with the food packaging producer SIG Group (-1.8 %) this bulky accessory.
The Roche dividend certificate (-0.8%) was weighed down by the failure of an advanced clinical program on a combination of the established immunotherapy Tecentriq (atezolizumab) and tiragolumab still in the development phase against a form of cancer of the lung. The Rhine multinational has also planned to spend up to $1.5 billion to acquire the Californian developer of allogeneic gene therapies Poseida Therapeutics.
The two other heavyweights in Zurich fell in disarray, the food liner Nestlé drifting by 0.6% while the Novartis laboratory (-0.2%) limited the damage.
The good end of the ranking was occupied by the eye care behemoth Alcon (+1.7%), boosted by analyst comments, ahead of the Schwyz logistician Kühne +Nagel (+0.6%).
Zurich Insurance failed at the foot of the provisional podium, benefiting from laudatory comments around its new three-year roadmap.
Luxury stocks made a remarkable recovery, Richemont returning to balance while the carrier Swatch gained 0.3%.
On the broader market, rolling stock manufacturer Stadler Rail (-0.7%) hardly benefited from the announcement of a new order for four metro trains in Texas.
The operator of retail outlets for travelers Avolta fell by 8%, hit hard by a sell recommendation made by Barclays.
The Austrian engine manufacturer Pierer Mobility (-7.7%) was also disillusioned, the day after a clear rebound fueled by maneuvers intended to extend its financing horizon, ensuring in the process that it would be able to honor its entire debt, interests included. (AWP)
Swiss
