SMI closes with biggest daily loss since March; Nestlé, Richemont hit three-month lows

The Swiss Market Index (SMI) experienced a substantial decline on Wednesday, marking its lowest close since March 19. The index lost 1.8% to settle at 13,804.70 points, continuing a downward trend since the week's start. Nestlé's shares fell 3.3% to CHF 77.73, reaching their lowest level since June 9, 2023. The decline was influenced by rising oil prices and associated inflation and interest rate concerns. A market participant noted a 'Higher-for-longer' scenario, emphasizing the significance of upcoming US inflation data on Friday. Novartis shares also declined 0.1% following a sharp drop the previous day, with analysts citing disappointing study data on Pelacarsen and Del-Desiran. Logitech led the SMI with a 0.3% gain, attributed to the launch of a new developer tool focused on AI applications. Other Bluechips, including Alcon, showed slight gains. However, Richemont (-4.7%), Nestlé (-3.3%), and ABB (-3.3%) were among the worst performers, with market participants citing weak economic and price data from China. DocMorris (+6.6%) surged to a 16-month high, announcing plans to issue a new bond of approximately CHF 100 million to repurchase outstanding bonds maturing in 2028. Adecco (+2.8%) and Barry Callebaut (+2.0%) also saw gains, with Barry Callebaut's CEO, Hein Schumacher, highlighting the company's 'Focus for Growth' strategy at an investor meeting. Lindt (+2.1%) also gained ground, with UBS maintaining its buy recommendation despite a reduced target price. Medacta (-3.8%) and Bioversys (-3.9%) suffered declines, with Bioversys' shares dropping sharply following disappointing first-half margin data. The Dow Jones and S&P 500 indices also declined, with the Dow Jones dropping 0.8% to 52,392.78 points and the S&P 500 falling 0.4% to 7,643.14 points. The Nasdaq index lost 0.5% to 26,275.00 points, with investors concerned about high energy prices due to tensions in the Middle East. Meta's shares rose 5%, following the launch of a new AI assistant capable of performing tasks such as sending emails, selling cars, and booking travel. Apple shares remained stable ahead of the expected presentation of a new foldable iPhone. Oil prices rose above $100 per barrel for the first time since mid-July, with Brent crude reaching $102.50. The increase in oil prices is expected to impact inflation and interest rate decisions, with US inflation data due for release on Friday. The rise in oil prices has also benefited the shares of US oil companies, with Exxon Mobil and Chevron gaining up to 1.0%. Casey's shares fell 12% after reporting quarterly results that missed expectations, with the outlook for the 2026/27 fiscal year confirmed. Rocket Lab's shares rose 2.1% after the company announced a new solar cell designed for use in space. ServiceTitan's shares fell nearly 20% despite reporting earnings that exceeded expectations, with the company's outlook for the third quarter falling short of market expectations. Meta's new AI assistant, Muse, allows users to perform tasks across various apps and online services, with the company emphasizing the security measures in place to protect user data. The assistant can send emails, make purchases, and perform other tasks, with users having the ability to grant or revoke access to specific services. Meta has also opened its bug bounty program to the public, following a period of testing.