Zurich (awp) – The Swiss stock exchange closed the session higher on Friday, momentarily accelerating to over 10,850 points after US labor market data. The US economy still does not show the slowdown desired by the Fed. The latter should therefore continue its monetary tightening to combat inflation.
Across the Atlantic, the unemployment rate increased by 0.2% in one month in October, to 3.7%, while remaining within the range observed since March. Job creation, on the other hand, maintained an almost identical pace in September with 261,000 jobs created last month, up from 263,000 in September. In both cases, the data exceeded analysts’ expectations.
“The US job market is not weakening, not yet,” analysts from CMC Markets commented in a statement. Market participants have already assessed key future rate hikes by the Federal Reserve (Fed) and are therefore focusing on other elements, such as the risk of recession. October inflation (CPI) data, arriving next Thursday, should provide more clarity on whether or not prices peak, they added.
On Wall Street, the three major indices lost strength, the Dow Jones still only gains 0.02%, but the Nasdaq loses 0.07% and the S&P 0.04%.
In Switzerland, the SMI closed with 0.72% at 10,787.77 points, after a low of 10,707.62 points and a high of 10,852.48 points. The SLI closed 1.37% higher at 1625.98 points and the SPI gained 0.81% at 13,757.97 points.
Almost all of the stellar stocks rose in the green, with the exception of two pharmaceutical heavyweights Roche (-1.7%) and Novartis (-0.1%). Alcon (-0.1%) also renounced earnings.
The third large cap Nestlé (+ 0.5%) ended the session in green.
The winning table remained in the hands of luxury stocks Swatch (+ 7.6%) and Richemont (+ 6.7%), as well as Schindler (+ 4.2%). These stocks benefited from rumors of a loosening of the so-called zero Covid policy implemented by the Chinese authorities to fight the coronavirus.
In the broader market, Santhera (-0.6%) announced its intention to call an extraordinary general meeting on November 29, to ask shareholders for an additional capital contribution to finance the development and preparations for the commercialization of its vamorolone treatment.
Meyer Burger (-11.6%) closed with a large loss, after reporting that investment firm Sentis Capital exercised all of its subscription rights as part of the capital increase of 250,000 Swiss francs announced at the beginning of October.
Kinarus (-4.4%) is struggling in the Covid-19 franchise, maneuvering to redirect research on its main experimental treatment towards indications against age-related macular degeneration (AMD) and idiopathic pulmonary fibrosis (REIT).
al / rq