Zurich (awp) – The Swiss stock market tried to recover Monday morning, crossing the 12,000 point mark a few hours before the inauguration of Donald Trump as the 47th president of the United States. Its sensational announcements, particularly regarding customs taxes, will put investors to the test in the near future.
At noon sharp, Washington time (6 p.m. in Switzerland), the 47th president of the world’s leading economic power will begin his second term, succeeding Democrat Joe Biden. As of Monday, the Republican announced a flood of decrees, in particular to stem what he describes as an “invasion” of undocumented migrants.
“Where does the impression come from that he has resumed his functions for months already”, while Mr. Trump has not yet officially moved into the White House, asked the investment director of Lombard Odier. According to Michael Strobaek, “never has a new administration been so followed, nor has it been so unpredictable.”
For John Plassard, investment specialist at Mirabaud Banque, “the first days of his presidency promise to be busy, with bold promises on immigration, taxes, energy and foreign policy, but many initiatives could be hampered by legal constraints, Congress and legal challenges.”
Mr. Trump’s announcements “are a double-edged sword”, insisted Ipek Ozkardeskaya. According to the Swissquote analyst, “its policy encouraging growth and deregulation should benefit the American economy, but its policy on customs taxes will certainly increase inflation and restrain the Fed” in its desire to lower more its key rates.
Around 10:45 a.m. on the Swiss Stock Exchange, the flagship SMI index accelerated by 0.43% to 12,041.34 points, after opening with a tiny decline of 0.01%. The SLI gained 0.42% to 1994.38 points and the SPI gained 0.37% to 16,041.85 points.
The majority of star stocks remained in the green, with Kühne+Nagel (+1.9%), Sandoz (+1.4%) and Roche (+1.2%) now at the top of the rankings.
SGS (+0.4%) announced the acquisition of the American RTI Laboratories, specialized in environmental studies and materials testing. No financial details have been revealed.
-Schindler (stable) has found a new part-time chairman for its board of directors.
The broader market was a little livelier. Meyer Burger (+14.8%) calmed its enthusiasm somewhat. The group, in great difficulty, obtained additional financial resources and spoke with potential buyers.
Peach Property (+3.9%) has successfully completed its public bond offering.
Ypsomed (+3.1%) was also on the rise, driven by a buy recommendation from UBS, which on the other hand lowered the price target.
Belimo (+2.7%) was still accelerating. The specialist in actuators and ventilation flaps recorded a solid increase in turnover last year, particularly in the Americas region, exceeding market forecasts. The Hinwil-based company saw its revenue increase by 9.9%, or 13.1% excluding currency effects, to 943.9 million Swiss francs.
Inficon (+0.2%) on the other hand slowed down the pace, after having garnered a turnover of around 671 million dollars last year, accompanied by an operating surplus of around 136 million.
al/jh
