2023-11-09 10:31:04
Zurich (awp) – The Swiss stock market reinforced its gains on Thursday, while the appetite for risk seems to be returning. The idea that the peak of monetary tightening is behind us offers some comfort to investors, even though the numerous threats to the evolution of the global economy continue to loom.
“Stocks were trading higher in Europe on Thursday, extending yesterday’s gains as investors’ appetite for risk resurfaces,” noted Pierre Veyret, analyst at ActivTrades. “The correction that began this week ended on Wednesday, and market participants continue to increase their exposure to both Treasuries and stocks, as optimism about having reached the peak of monetary tightening is always present,” he added.
The latest statements from the governor of the Bank of France, François Villeroy de Galhau, support this point of view. The official judged on Thursday that the ECB’s interest rates, kept unchanged during the last monetary policy meeting, would no longer increase “barring shock” and “barring any surprises”. However, he added that it was “too early to talk about going down”.
On the side of the Federal Reserve (Fed), Patrick Harker, president of the Philadelphia Fed, declared that rates will have to remain high for longer to fight inflation and that a reduction was unlikely in the short term.
In China, the consumer price index (CPI), the main indicator of inflation, fell 0.2% in October year on year, according to the National Bureau of Statistics. “China does not have inflation and cannot generate it, that is a problem,” notes Ipek Ozkardeskaya, analyst at Swissquote. “Weak CPI reinforces expectations for greater stimulus and lower rates,” she added.
At 11:00 a.m., the SMI index stood at 10,647.23 points, up 0.49%, the SLI rose 0.5% to 1,674.93 points and the SPI gained 0.52% to 13,966. 88 points. Of the thirty star stocks, 21 rose and nine fell.
ABB (+3.3%) took the lead in the provisional ranking, possibly supported by positive comments from Goldman Sachs, followed by VAT Group (+2.0%) and Geberit (+1.4%).
The performance after nine months of Zurich Insurance (+0.3%) left investors unmoved. The insurer managed to increase its premiums over the first nine months of the year. Management also confirmed its objectives for 2025 on Thursday and plans to remunerate its shareholders more with a planned share buyback program, the decision to be taken in February.
Roche (carrier: +0.6%, profit margin: +0.5%) has obtained priority status from the American Medicines Agency (FDA) for its Elecsys Neurofilament Light Chain immunological test. The device can detect disease activity in patients with multiple sclerosis (MS).
As for the two other heavyweights, Novartis (-0.1%) and Nestlé (+0.9%), they were heading in opposite directions.
Among the biggest losers were generics specialist Sandoz (-1.3%), carrier Swatch (-1.0%) and UBS (-0.9%). The banking giant made a return to the so-called AT1 bond market with a highly requested placement despite the shock on this market in March during the rescue of Credit Suisse. The issue in two tranches represented a volume of 3.5 billion dollars (3.15 billion Swiss francs).
On the broader market, Comet rose by 8.9%. The Friborg group has revised its medium-term objectives upwards, while pushing them back to 2027.
For its part, the travel platform Lastminute.com (+2.0%) returned to profit in the 3rd quarter, posting a net profit of 10.1 million Swiss francs between July and the end of September, compared to a loss of 4 .1 million a year earlier. The group anticipates improved profitability over the whole year.
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