Zurich (awp) – The Swiss equity market attempted a timid technical rebound in the last session of the week, after falling yesterday from Wall Street, as well as from the Swiss market. Continuing to question the intentions of the US Federal Reserve, investors remain cautious as they await the release of US employment data.
The major New York indices closed lower last night in the aftermath of the Fed meeting. The US central bank has clearly indicated that there is still a long way to go before an easing of the ongoing monetary tightening, notes John Plassard. by Mirabaud Banque. The technology sector was logically under pressure as Treasury yields rose.
While US employment data is due out this afternoon, this still too buoyant part of the economy is currently a problem for the Fed, although Plassard acknowledges the word is a bit strong. “It is paradoxical, but without an increase in the unemployment rate, the American monetary institution believes that its monetary normalization does not yet have the expected effects on the economy”, recalls the expert.
On the front of the rare macroeconomic information of the morning, orders to German industry continued to fall in September, weighed down by the war in Ukraine and the energy crisis. The indicator, which gives a glimpse of industrial production, fell 4.0% in one month. Industrial production in France fell by 0.8% in September, after rebounding 2.7% in August.
In Switzerland, the hotel sector recorded a further increase in the number of overnight stays in September, driven by an increase of almost half of foreign tourists. In nine months, attendance has increased by over 30%. The KOF economic survey hinted at an economic slowdown, with production starting to falter.
After starting the session up 0.16%, the SMI quickly turned red, before recovering and noticing around 9:20 am at 10,716.12 points, a small increase of 0.04%. The SLI appreciated more frankly, by 0.33% to 1609.08 points, while the broader SPI indicator gained only 0.07% to 13,655.10 points.
Of the thirty stocks that make up the Swiss Leader Index (SLI), seven were moving into the red zone, the other 23 were appreciating. At the top of the table, the volatile AMS-Osram jumped 3.6%, just ahead of the duo of luxury giants Richemont (+ 3.5%) and Swatch Group (+ 3.4%), which benefited from the new rumors about a relaxation of the zero Covid policy implemented by the Chinese authorities to fight the coronavirus pandemic.
Straumann (+ 2.1%) climbs to 4th place, ahead of Kühne + Nagel (+ 1.7%). Additionally, Holcim (+ 0.2%) saw JPMorgan raise its price target.
At the end of the ranking, the heavyweight Roche (-0.8%) weighed heavily on the indices, as did its alter ego Nestlé (-0.5%). Novartis, the third capitalization of the Swiss market, is just in the red (-0.04%). Swisscom’s defensive also struggled (-0.1%).
In the broader market, Santhera (-3.5%) announced its intention to call an extraordinary general meeting on November 29 to ask its shareholders for an additional capital contribution to finance the development and preparations for the commercialization of its vamorolone treatment.
Meyer Burger (-2.3%) reported that the investment firm Sentis Capital exercised all of its subscription rights as part of the capital increase of 250,000 Swiss francs announced in early October.
Kinarus (+ 4.4%), struggling in the Covid-19 franchise, is maneuvering to redirect research on its main experimental treatment towards indications against age-related macular degeneration (AMD) and idiopathic pulmonary fibrosis (IPF).
vj / jh