Zurich (awp) – The Swiss stock market opened just below balance on Wednesday, before falling amid renewed political tensions after two missile falls in Poland. Since this country is a member of NATO, this event has revived the risk of a conflagration and is shaking up the chancelleries, even if for the moment they are calling for calm. US President Joe Biden said the missile was “unlikely” to have been fired from Russia.
Major US indices closed higher last night on the release of lower-than-expected producer prices, suggesting that inflation is decelerating and the Fed could be less hawkish, noted John Plassard, of Mirabaud Bank.
In the United States, the results of the midterm elections are taking shape and we are moving towards a situation with a Republican-controlled House of Representatives versus a Democratic Senate. That means Republicans will likely block Democrats’ spending packages and Joe Biden won’t be able to tax oil and gas companies as he planned, sums up Swissquote’s Ipek Ozkardeskaya.
In Britain, inflation accelerated further in October to 11.1% on a year, the highest in over 40 years, mainly driven by rising energy bills.
October US Retail Sales and Industrial Production will be in the spotlight this afternoon.
As of 9:14 am, the SMI was down 0.42% to 10,979.69 points. The SLI lost 0.55% to 1706.54 points and the SPI 0.35% to 14,074.81 points.
Of the 30 SLI stocks, only three have gained share, while 27 have lost ground.
The three winners were in order Alcon (+2.4%), Ams-Osram (+0.2%) and Nestlé (+0.1%). Alcon reported a slight increase in sales in the third quarter, while profitability was slightly slowed by R&D investments.
Conversely, SGS (-5.0%) held the red light, well behind all others. The group indicated in the preamble to its investor day that it expects to end the year with sales at the top of the single-digit target growth range, while its operating performance is expected to be at a similar level to the previous year, it evaluates excluding effects that have disappointed the markets.
Credit Suisse (-1.7%) was next to last. The bank has reportedly sold more than a “substantial portion” of its securitization business to Apollo Global Management. According to a Bloomberg cable citing “informed” sources, the New York investment firm also bought subsidiary Sector Financial Inc.
Pharmaceutical heavyweights Novartis and Roche returned 0.8% and 0.6%, respectively.
On track to meet its targets for the cycle ending this year, Zurich Insurance (-0.3%) wants to further accelerate its growth over the next three years. By 2025, the insurer aims to see earnings per share grow by 8% annually on an organic basis, up from 5% in the current period.
In the broader market, Idorsia (-0.3%) entered into an exclusive licensing agreement with Simcere Pharmaceutical for the drug daridorexant in China. In particular, the Allschwil group will receive an initial payment of 30 million dollars and another amount of 20 million after the green light from the health authorities. There are also sales commissions.
Ypsomed (+6.0%) generated in the first six months of its staggered financial year 2022/23 – i.e. from April to the end of September – a net profit of 15.2 million Swiss francs, multiplied by more than two over a year . The Berthoud company immediately confirms its ambitions for the full year.
Galenica (-0.3%) wants to strengthen itself in cannabis for medical use. To do so, it takes over the Bahnhof Apotheke Langnau pharmacy in the canton of Bern, which is, with its Cannaplant brand, the leading supplier of formulas for medicinal cannabis preparations in Switzerland.
Comet (-4.1%) lowered its annual targets. In the preamble to its investor day, the Flamatt Group has now indicated that it expects to achieve a performance below the target range for 2022. The longer-term outlook, however, remains unchanged.