The Swiss SMI opened lower on Tuesday, weighed heavily by Novartis, which fell nearly 10% after its experimental treatment for a rare muscle disease failed to meet its primary end point in a Phase III trial. By 11:40 a.m., the benchmark index stood at 14,094.20, down 1.3%, while the broader SPI shed 0.9% to 19,881.15. The mid-cap SMIM was an outlier, gaining 0.6% to 3,081.94. Other European bourses also slipped, though not as sharply as the SMI.
Novartis (−9.8% at midday, later quoted at −8.8% and intraday as low as −10% at 112.54 CHF) extended losses following a disappointing result for pelacarsen, a heart-medicine candidate, which had weighed on the shares by 3.2% the prior session. The drug company reached a record high of 132.68 CHF the previous week.Measured by market capitalisation, the sell-off is on track to become Novartis's steepest single-day loss on record, wiping out roughly CHF 24 billion in value — more than was lost after the 2015 euro-floor abolition or during the March 2020 crash. A confirmed medium-term revenue outlook provided little consolation. Vontobel called the del-desiran outcome a "significant setback" for the pipeline. The candidate targets myotonic dystrophy type 1, a rare muscular disorder.
Nestlé (+2.7%), Roche (+0.8%) and Givaudan (+0.7%) anchored the SMI, which finished the session down 1.4%. Nine of the 20 index constituents finished in the green against 11 in the red. Swiss Life (+0.4%) was among the few pre-market gainers alongside Roche.
In the broader market, several companies released capital-market updates. Sandoz rose as much as 4.3% after setting new growth targets through 2030 and pledging to expand its biosimilars business. Oerlikon gained up to 1.8% pre-market and 0.8% at open after presenting mid-term targets the UBS judged "slightly above" market expectations yet "realistic" — more than CHF 2 billion in revenue and an adjusted EBITDA margin above 20% by 2030. Ascom surged 7.6% on a seven-year, roughly CHF 80 million contract from Norway; the ZKB called it a "major success." SoftwareOne climbed 4.1% after Kepler Cheuvreux materially raised its target, saying the firm's turnaround is "clearly on track." Galderma (+2.4%) and Gurit (+2.5%) also advanced on fresh analyst commentary and target hikes, as did SFS (+1.3%) and Bachem (+1.6%).
On the losing side, Burkhalter retreated 6.3%, surrendering the prior day's gains, while technology names including VAT, Inficon and Comet faced above-average pressure.
Outside Switzerland, copper hit a record on the London Metal Exchange at $14,533 per tonne on Monday evening, topping the early-year high and marking a gain of more than 40% over twelve months and a tripling over the past decade. supply pressures from Chile — where output fell 9.4% year over year amid adverse weather, following last year's mine accidents — collided with rising demand from electricity grids, electric vehicles, AI data centres and defence. Brent crude rose above $99 a barrel, the highest since mid-July, with the $100 mark coming into view as Strait of Hormuz tensions persisted. A trader noted that risk appetite remains constrained so long as Middle-East friction and elevated energy prices endure.
Ahead of Thursday's ECB rate decision, a 25-basis-point hike to 2.5% is seen as certain; attention will focus on forward guidance. In Asia, the US holiday left Wall Street without fresh direction and the Nikkei 225 virtually unchanged at 66,445.13.
On the analyst desk, HSBC lifted its ABB target to 84 CHF (from 82) with a Hold rating, and Barclays raised its Lonza target to 730 CHF (from 680) to Overweight.
