2023-06-27 06:46:03
Zurich (awp) – The Swiss stock market was heading towards the start of the session in the green on Tuesday, following closing Monday in negative territory. Investors are awaiting US macro-economic data, as indicators pointing to an economic slowdown are increasing.
“The main US indices ended down last night under the weight of further profit-taking on technology stocks (Tesla, whose recommendation was lowered by UBS, being one of them) and more generally cyclical stocks”, underlined John Plassard, of Mirabaud Banque, in a commentary.
Investors are already turning to “the publication of stress tests on American banks” scheduled for Wednesday, “the collapse of several regional banks is still on everyone’s mind”, echoing in particular the Silicon Valley Bank (SVB). The expert points out that these tests do not, however, take into account the speed of the rise in rates by the Fed, and more generally by central banks.
On the macroeconomic front, China has “hope” to achieve its growth target set at “regarding 5%” in 2023, despite a loss of steam in the recovery in the world’s second largest economy.
On the agenda in particular is the annual forum of the European Central Bank (ECB) on the theme of economic stability in the face of high inflation and across the Atlantic, consumer confidence in June (Conference board) as well as new home sales and durable goods orders for May.
In Switzerland, the net wealth housed in the country increased by 2.5% in 2022 to reach 5.4 trillion US dollars (nearly 4.8 trillion in Swiss Swiss francs), reports BCG.
At 8:14 a.m., the Swiss Market Index (SMI) gained 0.24% to 11,168.60 points in the pre-market market concocted by the bank Julius Bär. All of the values of the flagship index of the Zurich place were adorned with green.
Sika was in the lead (+1.2%). The construction chemist has opened a new production site in Kharagpur, in eastern India, to manufacture, among other things, mortar and admixtures for concrete.
UBS took 0.7%. The heavyweights Novartis, Nestlé and Roche stood in a pocket handkerchief (+0.2%). Other stocks were also hovering around 0.2%.
Excluding SMI, Schindler gained 0.2%. A purchase for a total of 11.93 million Swiss francs of shares was made by a non-executive member of the Lucerne group’s supervisory body. Additionally, Jefferies raised the elevator and escalator maker’s price target to 220 Swiss francs from 202 Swiss francs previously, revising upwards earnings per share estimates for 2023 and 2024.
The insurer Helvetia (+0.2%) applied new accounting standards – IFRS 17/9 – to the presentation of its financial accounts. Net profit for 2022 now stands at 480.2 million, down 22%, compared to 614 million previously.
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