SMI on the rise: That’s what it’s all about
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The expected election of Donald Trump is boosting the Swiss Market Index.
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The index of the most important Swiss stocks is up around 1.4 percent.
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The stock markets in the USA are also reacting positively to the results of the US elections.
The Swiss Market Index (SMI) reacted positively to the expected election of Donald Trump as the new US President. The SMI gained around 1.4 percent in early trading.
The important US indices Dow Jones Industrial and Nasdaq 100 are also trading around one percent higher.
Stocks such as UBS (plus four percent), Holcim (plus four percent) and Swiss Re (plus 2.5 percent), as Cash.ch writes, are showing strong gains. Swissquote shares are also up around three percent.
What is now crucial is the question of tariffs and the Fed’s prospects of easing monetary policy, comments Samy Chaar, Chief Economist and CIO Switzerland at Lombard Odier. Global stocks, including US stocks, have the potential to rise over the next 12 months as earnings grow and profit margins remain high. “In the US market, financial, technology and defense stocks are likely to perform well under a Trump administration,” says Chaar.
“The biggest winners will be sectors and industries that welcome a more business-friendly regulatory environment, including fossil fuel energy companies, financial services and smaller capitalization companies,” says fund firm Franklin Templeton. Concerns about price caps on prescription drugs are likely to ease and boost business in the pharmaceutical sector, analysts said. Swiss pharmaceutical companies such as Roche and Novartis should benefit from this.
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