DayFR Euro

Zurich Stock Exchange: caution before the American presidential election and the Fed

Zurich (awp) – The Swiss stock market should be cautious on Monday, at the start of a crucial week with the American presidential election on Tuesday and monetary policy announcements from the Federal Reserve (Fed) on Thursday. These events are likely to overshadow any other company announcements in the coming days.

No poll manages to decide between Kamala Harris and Donald Trump and never has the outcome of a presidential duel in the United States been so unpredictable, between two candidates who are completely opposed. A clear announcement of the winner will therefore be relatively unlikely on Wednesday morning.

The Democratic vice-president and the former Republican president continued on Sunday to travel through the key states which will decide whether America will open the doors of the White House to a woman for the first time or, on the contrary, send the billionaire back there.

“If the results come down to a few thousand votes in a handful of close races, Americans could face a wait of several days similar to that of 2020,” estimated John Plassard of Mirabaud Banque.

“The worst possible outcome for the markets would be a race that is too close and a contested result,” added Ipek Ozkardeskaya of Swissquote. According to the analyst, “in the short term, a victory for Harris could relieve the bond and international markets, while a victory for Trump could resonate more strongly – and not necessarily in a good way – for the euro and the markets Europeans due to threats of customs taxes.

Around 8:12 a.m., the flagship SMI index showed a small increase of 0.09% to 11,978.35 points, after closing on Friday with a strong increase of 1.48%, according to pre-market indications compiled by the bank. Julius Bär.

All the star stocks were in the green with prices moving around +0.1%, in the virtual absence of company news.

Clariant (+1.1%) stood out from the crowd, thanks to its investor day. The specialty chemist maintains its medium-term growth forecasts and expects an increase in turnover of 4 to 6% and the Ebitda margin of 19 to 21% by 2027.

The three heavyweights of the rating Novartis, Roche and Nestlé (all three +0.1%) moved with the market.

Adecco (+0.1%) did the same. The personnel placement juggernaut is due to unveil its third quarter results on Tuesday and analysts surveyed by the AWP agency expect a decline in turnover to 5.8 billion euros.

On the broader market, Bachem (+3.3%) attracted the attention of investors. JPMorgan analysts have in fact started coverage of the stock with an “overweight” recommendation.

al/vj

-

Related News :