The Swiss equity market closed slightly lower Tuesday, with the SMI index shedding 0.5% to 13,809 points after recovering from its intraday low. Among the 20 SMI constituents, ten stocks rose and ten declined. Trading volume came in at 26.34 million shares, up from 21.63 million the previous session.
Relief signs emerged on the bond market, where yields pulled back from their day highs. Oil prices meanwhile climbed again, tempering buying interest. No fresh developments arose from the Middle East crisis region following recent reports of further deterioration in supply prospects.
Investors also remained cautious ahead of the Federal Reserve's interest-rate decision on Wednesday after European markets close. Market expectations point to a 25-basis-point hike by the central bank.
UBS shares came under heavy pressure, falling 3.4%. Market participants cited a vote on a watered-down regulatory proposal concerning capital requirements, as well as comments from Bank of America's chief executive about largely stagnant trading revenues and investment banking fees.
Selling pressure extended to other SMI blue chips: Nestle fell 1.7%, Novartis dipped 0.1%, and Roche dropped 0.2%.
Weak Chinese retail-sales data weighed on luxury-goods makers Richemont, down 1.9%, and Swatch, off 1.1%. Both companies count China as an important sales market.
On the gainers' side, insurers benefited from higher market rates, which are likely to boost the sector's investment returns. Swiss Life held steady, while Swiss Re and Zurich each rose 1.1%.
Among smaller-cap stocks, Ams-Osram fell a further 2.3%, extending losses after Monday's sharp selloff triggered by concerns about the pace of AI advancement.
