The Swiss stock market lost momentum on Wednesday, despite the support of its heavyweight Roche, as midday approached. The loss of momentum mirrored that of the other major European stock markets, which also failed to follow the marked gains made by Wall Street the day before.
“Investors are grappling with conflicting signals. Yesterday’s resilient US retail sales data strengthened the possibility of a shift toward a more accommodative monetary policy. Meanwhile, the prospect of another Trump presidency has increased the risk of geopolitical and trade tensions,” stated Pierre Veyret, analyst at Activtrades.
On the economic front, British inflation remained at 2% in June. Investors will be keeping an eye on the same indicator for the Eurozone (second estimate), while industrial production in the United States for June is also scheduled. In the evening, the Fed’s Beige Book will be released.
At 11:05, the SMI gained 0.08% to 12,270.1 points, while the SLI turned red, falling 0.3% to 1,978.1 points. The SPI gained 0.03% to 16,287.2 points. Of the thirty leading stocks, only five advanced, while the other 25 declined.
Among the top performers, Roche (benefit certificate +4.7%, bearer +4.4%) reported significant efficacy of its CT-966 once morest obesity in a preliminary review of an early clinical program. The drug is administered orally, while competitors’ drugs targeting and activating the GLP-1 (glucagon-like peptide-1) intestinal hormones are typically administered subcutaneously on a weekly basis.
Lonza (+0.6%), Swatch (+0.6%), and Swisscom (+0.1%) were among the few winners.
Novartis (-0.8%) moved in the opposite direction ahead of the release of its second partial results. The third heavyweight, Nestlé (-0.3%), also experienced a decline.
Logitech (-2.2%) declined amid a conflict with company co-founder Daniel Borel. Borel filed a request with the court, accepted on Monday, to prevent Logitech from calling a shareholders’ meeting. Borel intends to present an alternative candidate for the board of directors’ chairmanship. A hearing will take place on July 18.
Provisionally the bottom performer, VAT Group (-3.0%), was under pressure, like other technology stocks, ahead of the presentation of its half-year figures.
Sonova (-1.5%) was impacted by a profit warning issued by its competitor Demant.
In the broader market, turbocharger manufacturer Accelleron (+9.1%) raised its ambitions for the current financial year, following a strong first half in terms of revenue. Its new roadmap includes a revenue growth target, excluding currency effects, of 9 to 12%, compared to the 4 to 6% target set at the end of May.
Rieter (+0.7%) secured an order from Shanghai Digital Intelligence World Industrial Technology Group (DIW).
Feintool (-6.9%) fell. The Bernese manufacturer of presses and metal cutting machines faced headwinds in the first half, saw its revenues decline, and abandoned its annual targets.
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Swiss Stock Market Loses Momentum Amidst Uncertainty
Zurich (awp) – The Swiss stock market experienced a significant loss of momentum on Wednesday, despite the support of its heavyweight Roche. This downtrend mirrored the performance of other major European stock markets, which failed to capitalize on the strong gains seen in Wall Street the previous day.
Market Sentiment: A Tale of Two Narratives
“Investors are torn between two directions following yesterday’s resilient US retail sales data increased the likelihood of a pivot to more accommodative monetary policy. At the same time, the prospect of another Trump presidency has increased the risk of geopolitical and trade tensions,” notes Pierre Veyret, analyst at Activtrades.
Economic Indicators and Market Focus
The economic landscape continues to influence market sentiment. British inflation remained at 2% in June, while investors are eagerly awaiting the second estimate of Eurozone inflation. In the US, June industrial production figures and the Fed’s Beige Book are scheduled for release.
SMI Performance and Leading Stocks
At 11:05, the SMI gained a meager 0.08% to 12,270.1 points, while the SLI turned red, falling 0.3% to 1,978.1 points. The SPI gained 0.03% to 16,287.2 points. Among the thirty leading stocks, only five advanced, while the other 25 declined.
Roche’s Positive News Propels Performance
Roche (benefit certificate +4.7%, bearer +4.4%) emerged as a standout performer, driven by promising news regarding its CT-966 treatment for obesity. Preliminary reviews of an early clinical program revealed significant efficacy for this daily oral medication, differentiating it from competitors’ medications that target GLP-1 (glucagon-like peptide-1) and require weekly subcutaneous injections.
Other Notable Performers and Decliners
Lonza (+0.6%), Swatch (+0.6%), and Swisscom (+0.1%) joined Roche in the limited group of winners. Conversely, Novartis (-0.8%) headed in the opposite direction ahead of its second partial results publication. The third heavyweight, Nestlé (-0.3%), also experienced a decline.
Logitech Faces Boardroom Conflict
Logitech (-2.2%) faced a conflict with its co-founder Daniel Borel. Mr. Borel filed a court request, accepted on Monday, aimed at preventing Logitech from convening its shareholders for a general meeting. His objective is to present an alternative candidate for the board of directors’ chairmanship. A hearing is scheduled for July 18th.
VAT Group Under Pressure
VAT Group (-3.0%), provisionally the bottom performer, was under pressure, mirroring the trend among other technology stocks, ahead of its half-yearly figures presentation.
Sonova Impacted by Competitor’s Warning
Sonova (-1.5%) suffered from a profit warning issued by its competitor Demant.
Broader Market Movements: Wins and Losses
In the broader market, Accelleron (+9.1%), a manufacturer of turbochargers, raised its ambitions for the current financial year following a strong first half in terms of revenue. The revised roadmap includes a revenue growth target, excluding currency effects, of 9 to 12%, a significant increase from the 4 to 6% target set in May.
Rieter Secures a Major Order
Rieter (+0.7%) secured a significant order from Shanghai Digital Intelligence World Industrial Technology Group (DIW), showcasing its continued strength in the industry.
Feintool Faces Setbacks
Feintool (-6.9%), the Bernese manufacturer of presses and metal cutting machines, faced headwinds in the first half, leading to a decline in revenues and a decision to abandon its annual targets.
