Anticipated financial movements on the Swiss stock market prior to the Fed summit
The Swiss stock market experienced a mixed performance on Tuesday, with the Swiss Market Index (SMI) and the Swiss Leader Index (SLI) both closing in the red. The SMI closed 1.03% lower at 12,018.66 points, mirroring the SLI's 1.16% decline to 1984.46 points. In the SLI, 23 stocks closed in the red, while only 8 were in the green. One of the standout performers was VAT, a semiconductor equipment supplier, which closed higher. The positive lead of the Nasdaq and a JPMorgan study suggesting that the technology sector has bottomed out were factors for VAT's higher close. However, the tech sector was not the only one making headlines. Financials in the SMI/SLI showed weakness, with notable declines for insurers Swiss Re (-3.1%), Zurich (-2.3%), and Swiss Life (-1.4%). UBS also closed 2.0% lower, with the UBS CFO stating that the bank is considering countermeasures regarding the impending tightening of Swiss capital requirements. Julius Baer also saw a 2.7% drop. Nestlé closed 0.1% lower, despite a 'buy' recommendation from ZKB. On the other hand, the broader Swiss Performance Index (SPI) lost 1.05% to 16,709.44 points. Meanwhile, the biotech sector saw some positive movements. Shares of biopharma company Newron surged following interim results and a positive outlook from the CEO. Idorsia, another biotech company, continued its strong recovery, hitting new yearly highs. Logitech also gained, with UBS reaffirming its buy recommendation and raising the target price. Roche and Novartis both closed 0.8% lower, but Sandoz, the generics unit of Novartis, closed 0.4% higher, due to a positive analyst comment by JPMorgan. Schindler, a company in the SMI/SLI, saw a 3.4% decline due to reports of a large block of shares being sold. Straumann and Sonova, medical technology stocks, also closed stronger. It's important to note that no decisions have been made yet regarding the countermeasures at UBS. The Swiss National Bank's Governing Board and its monetary policy committee are responsible for monetary policy decisions. The Governing Board consists of members such as the President and Vice President, but current members are not fully detailed in the search results. Decisions are made jointly by the Governing Board members who bring in their own views to reach consensus. In conclusion, while the Swiss market saw a predominantly negative performance, the tech sector managed to shine, with VAT, Newron, and Idorsia leading the way. However, the financial sector struggled, with UBS, Julius Baer, Swiss Re, Zurich, and Swiss Life all closing lower. The broader market also saw mixed results, with the SPI, Logitech, Sandoz, Straumann, and Sonova all experiencing different fates. The situation at UBS remains uncertain, with no decisions made regarding countermeasures yet.
