Zurich (awp) – The Swiss stock market sold off some of its gains on Tuesday as midday approached. After passing the 10,900 point mark in early trading, the stellar stock SMI had lost its luster. In the sights of investors, the US Federal Reserve (Fed) monetary meeting due to start on Tuesday and the release of the official US employment report on Friday have raised doubts.
On Wednesday, investors will focus on statements from Fed chief Jerome Powell, likely to distill some clues about the issuer’s intentions in terms of rates. Many hope to see the Fed ease its monetary policy tightening early next year.
“We are therefore at the point where, after the fourth consecutive 75 basis point hike this week, the Fed could suggest a 50 point hike in December,” Swissquote analyst Ipek Ozkardeskaya said in a statement. According to her, the sequence is expected to end with two hikes of 25 basis points in the first quarter of 2023, followed by a pause.
The euphoria over a possible easing of monetary policy by the Fed pushed the Hong Kong stock market, which saw a spectacular rebound, closing up 5.23% after climbing more than 6% in the session.
In the macroeconomic chapter, China recorded a further contraction of its manufacturing activity in October, for the third consecutive month, weighed down by anti-Covid restrictions.
At 11:10 am the Swiss Market Index (SMI) rose 0.59% to 10,891.65 points, after a peak of 10,926.54 points, the Swiss Leader Index (SLI) of 0.87% to 1645.90 points and the broader market Swiss Performance Index (SPI) of 0.60% at 13,866.20 points. With the exception of the defensive Roche (-0.2%) and Swisscom (-0.5%), all “blue chips” evolved into positive territory.
The blue colossus has seen its price target cut by Vontobel, which it keeps “holding”. According to the analyst, the acceleration of the activity of the Italian subsidiary Fastweb will be canceled by the fall of the euro and the change in the architecture of the fiber optic network will involve greater investments in the long term.
The other two heavyweights Novartis (+ 0.3%) and Nestlé (+ 0.2%) are also in the galley, with no particular news.
Luxury stocks Richemont (+ 4.2%) and Swatch (+ 3.6%) continue to lead the way.
Credit Suisse (+ 2.8%) continued its rebound that began the day before in the wake of the publication of the plans for its massive capital increase.
UBS (+ 0.9%) has partnered with Swiss Marketplace Group (SMG) in mortgage advice, brokerage and marketing.
Deutsche Bank began hedging registered company Schindler (BP + 2.0%) with a buy recommendation with a target price set at 184 Swiss francs.
Swiss Re (+ 1.3%) saw its recommendation downgrade to “hold” after “buy” and its price target reduced to 70 (85) Swiss francs by CFRA, which then takes into account the quarterly loss confirmed last year. week.
Berenberg slightly lowered Holcim’s price target (+ 0.6%) and confirmed the “sale”, due to the expected deterioration of the market environment, as well as the consequences of the growth strategy based mainly on mergers and acquisitions (M&A ).
In the broader market, DKSH (-0.1%) completed the acquisition of the Canadian Terra Firma and Cembra (+ 0.8%) that of the solution provider for the payment of bills Byjuno.
Burckhardt Compression (+ 8.4%) closed the first half of its staggered financial year 2022/23 with significantly higher revenues and results, while against all expectations, order acquisition took off by more than half, despite a high basis of comparison. In the process, the strategic objectives were revised upwards.
Zur Rose (+ 6.8%) combines its logistics and distribution activities with supply activities, under the leadership of its new Chief Operating Officer (COO) Kaspar Niklaus, who succeeds Bernd Gschaider.
Implenia (+ 3.9%) unveiled a new medium-term roadmap, promising in particular a “cautious” return to dividends from the spring 2023 general meeting, on the occasion of a day dedicated to investors.
buc / rq / jh / ib