2023-12-07 10:31:04
Zurich (awp) – The Swiss Stock Exchange remained confined to the red color late Thursday morning. The latest macroeconomic data clearly shows the global economic slowdown, which might lead to a relaxation of rates. Investors are awaiting confirmation that the US job market is losing steam, with the US unemployment rate expected on Friday.
Concerning the Federal Reserve (Fed), “a significant number of observers believe that the first reduction might take place as early as March 2024, but this is not yet a majority opinion”, underlined Ricardo Evangelista of Activtrades, in a commentary. “The consensus among investors is that the Fed will act on the data. However, with inflation falling faster than expected and the economy slowing, the planets are aligning for a rate cut over the first half of 2024.”
Industrial production started to decline once more in October in Italy. For the same month, it fell in Germany once morest a backdrop of high energy costs and a gloomy economic situation.
In Switzerland, the unemployment rate increased slightly in November, standing at 2.1%.
At 11:10 a.m., the SMI lost 0.28% to 10,971.58 points, the SLI 0.31% to 1729.32 points when the SPI shed 0.255 to 14,337.84 points. Among the star stocks, ten were moving in the green and twenty were falling.
The good Schindler was in the lead (+0.7%) ahead of SIG (+0.6%) and the good Lindt (+0.3%).
The good Roche was the only heavyweight to keep its head above water (+0.2%), when Nestlé (-0.1%) and Novartis (-0.7%) were drinking the cup.
Sika gained 0.1%. JPMorgan raised the building chemist’s recommendation to “neutral” from “underweight.”
ABB and Partners Group were operating just below the waterline. The former was contracted to provide the charging infrastructure for the new Auckland Bay ferry service, New Zealand. The second makes changes to its management.
UBS fell by 1.3%. Credit Suisse, taken over by the Swiss banking giant, announced Wednesday evening the sale of its real estate fund management activities in Brazil. The amount of the transaction is up to 650 million reais, or approximately 115 million Swiss francs.
Swatch also fell by 1.3% following a rating downgrade by Deutsche Bank, which now recommends holding the stock, not buying it. Richemont dropped 0.6%.
Sandoz was bottom of the rankings (-1.6%), behind Lonza (-1.5%), without any particular indication.
On the broader market, Pierer Mobility (-2.8%) saw Stifel lower its recommendation to “hold”, once morest “buy” and slashed the price target to 60 Swiss francs, once morest 87 Swiss francs. Next year will be a transition phase for the Austrian engine manufacturer.
Softwareone (-1.9%) would now only be coveted by a single potential buyer, according to the Archyde.com agency. Bain Capital, which made an offer in June, would be the last in line.
Santhera (+0.2%) has strengthened its management in view of its transition to the commercial phase.
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