Zurich Stock Exchange: the SMI holds its breath before inflation in the United States

Zurich Stock Exchange: the SMI holds its breath before inflation in the United States
Zurich Stock Exchange: the SMI holds its breath before inflation in the United States

Zurich (awp) – The Swiss stock market should start on Monday without a clear trend, at the start of a session poor in business and macroeconomic news. Investors were holding their breath before the publication of inflation (CPI) on Wednesday in the United States, which will provide further indications on the future direction of the Federal Reserve’s monetary policy.

Inflation across the Atlantic, after falling rapidly at the end of 2023, has rebounded since January. It stood at 3.5% over one year in March, after 3.2% in February, according to the Labor Department’s CPI index. For April, Marketpulse analysts expect a slowdown to 3.4%.

On Wednesday, apart from inflation in April (CPI) in the United States, stakeholders will also watch for the second estimate of growth in the first quarter in the euro zone. Friday will follow industrial production in China in April, retail sales and the unemployment rate.

“The European indices should open without trend this morning with their sights set on the American inflation figures which will be published on Wednesday and which could definitively seal the fate of a rate cut by the Fed next month,” estimated John Plassard of Mirabaud Banque in a market commentary.

In fact, the Swiss Stock Exchange was heading towards a stable opening. At 8:07 a.m., the flagship SMI index rose by barely 0.04% to 11,758.76 points, after closing on Monday with a sharp increase of 1.31%.

No less than three star stocks were traded ex-dividend with Holcim (-3.0%, ex-dividend 2.80 Swiss francs), Lonza (-0.6%, 4.00 Swiss francs) and bearer shares Swatch (-2.4%, 6.50 Swiss francs).

The other stocks were preparing to start the day with a moderate increase, like Alcon (+0.2%). The behemoth of ophthalmic consumables and ocular implants will publish its quarterly results in the evening. Analysts surveyed by the AWP agency expect an acceleration in turnover to $2.48 billion and the operating margin to 13.2%.

Sonova (+0.2%) will follow on Tuesday with its 2023-2024 annual results, as well as insurers Zurich Insurance and Swiss Re (both +0.2%) on Thursday.

The rare news of the morning focused on the broader market, where Temenos (+2.7%) accelerated significantly. Investors Martin and Rosmarie Ebner increased their stake in the Geneva software publisher, via their holding company Patinex, to 15.62%, compared to nearly 13% previously. The British investment fund Petrus Advisers rose to 3.42%, after having been below the reporting threshold of 3%.

SIG Group (+0.2%) placed 450 million euros of debt securities with banks and institutional investors. The operation makes it possible to extend the maturity horizon of the Schaffhausen group’s loans while extending the base of its creditors.

al/cw

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