2023-10-02 16:16:05
Zurich (awp) – The Swiss stock market ended on a negative note on Monday. After a still positive start to the session, the SMI slipped into the red and began to move up and down below the 10,900 points mark. It accentuated its losses following the negative opening on Wall Street and, rising a little towards the end.
In New York, Wall Street was trading in disarray in the morning, following a negative opening. Investors were worried regarding the new rise in bond rates, which raises fears of suffocation of the economy, under the effect of monetary tightening by the American Federal Reserve (Fed).
“The hopes of seeing the market recover this month”, following a difficult month of September (-4.8% for the S&P 500), “were dampened by the rise in bond rates”, explained Patrick O’ Hare, from Briefing.com.
The yield on 10-year US government bonds stood at 4.65%, compared to 4.57% at Friday’s close. “It will take time for the market to get used to these rate levels,” said Maris Ogg of Tower Bridge Advisors.
Wall Street did not benefit from the postponement at the last minute, on Saturday, of a budget deadline by Congress, which made it possible to avoid the suspension of part of state services for lack of financing.
In Switzerland, retail turnover fell by 0.2% in August compared to last year. Adjusted for seasonal variations, revenues increased by 0.4% over one month. Those in the tertiary sector fell by 10.0% year-on-year in July.
The morale of Swiss purchasing managers recovered significantly in September, however remaining confined below the growth threshold. The optimism already present in the services sector has also been further strengthened.
The SMI ended down 0.91% to 10,863.65 points, with a low of 10,818.80 and a high of 10,987.61 recorded during the first hour of trading. The SLI lost 0.9% to 1698.85 points and the SPI 0.80% to 14,240.53 points. Of the 30 star stocks,
The Schindler voucher (+2.4%), ABB (+0.5%) and Logitech (+0.3%) are the winners of the day. Morgan Stanley raised its recommendation for the stock of the Lucerne manufacturer of elevators and escalators to “equal weight” from “underweight” and increased the price target. JPMorgan lowered the price target and confirmed “neutral”. The two experts revised their estimates before the publication of the 3rd quarter results. That of Morgan Stanley sees a generally positive scenario. That of JPMorgan raised its turnover and revenue estimates, but lowered that of Ebit because the evolution of margins marks a pause, according to it. In the field of new equipment, China will remain under strong pressure.
Alcon (-1.9%) finished bottom, behind Givaudan, Sonova and Adecco (all -1.8%).
HSBC raised the recommendation for Straumann to “hold” from “reduce” (-1.4%), without affecting the price target. The macroeconomic environment is not simple for the dental sector, according to the analyst who notes that companies in this branch are cyclical and not very resistant to economic weakening compared to other companies in the health sector. The increase in the recommendation is explained by the fact that the uncertainties surrounding growth in China and the weakness in North America are already discounted in the share price.
The heavyweights Roche (good -1.0%), Nestlé (-0.9%) and Novartis (-0.5%) lost ground more or less clearly.
Novartis assured that it had observed validation of the pre-established primary endpoint for the Applause-Igan advanced clinical study on its experimental treatment iptacopan in the indication once morest IgA immunoglobulin nephropathy.
The Royal Bank of Canada lowered its recommendation for Richemont (-0.6%) to “sector perform” from “outperform” and slashed the price target. The establishment also significantly reduced the price target for the Swatch carrier (-0.5%), confirming “sector performance”. The analyst remains cautious regarding the luxury goods sector. For Swatch, he took exchange rates into account. For Richemont, he is less confident regarding the short-term outlook and foresees a weakening of trends in the luxury sector.
On the broader market, the Vaudois battery producer in difficulty Leclanché (-7.7%) requested and obtained at the end of last week from the regulator of the Swiss Stock Exchange an extension to October 31 of the deadline for publishing its results on the six first months of the year.
The pharmaceutical company Basilea (+2.7%) indicated that the American Medicines Agency (FDA) would examine the marketing authorization application for its antibiotic ceftobiprole filed last August for the treatment of three pathologies ( Staphylococcus aureus bacteremia, acute bacterial infections of the skin and soft tissues, and nosocomial bacterial pneumonia).
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