Switzerland's SMI index dropped below 14,000 points for the first time since mid-June on Wednesday, sliding roughly 1% to 13,919. Nineteen of its 20 blue-chip constituents traded in negative territory, underscoring the breadth of selling pressure.
The mid-cap SMIM fell 0.7% to 3,064, while the broad SPI declined 0.9% to 19,666. All European equity markets were under pressure on the same day. Across Swiss sectors, only utilities posted a gain of 0.6%; cyclical consumption, industrials, and non-cyclical consumption were among the day's hardest-hit groups, down 2%, 1.2%, and 0.9% respectively.
Oil prices climbed above $100 a barrel for the first time since July, driven by escalating fighting in the Middle East. Brent crude's advance pushed European energy stocks close to new record highs, and the Stoxx oil-and-gas sector index rose 0.8%, hovering just under its early-May peak. Gas prices for the next delivery month rose another 4%, raising concerns about storage levels in northern Europe. A market participant described the outcome as a "higher-for-longer" scenario for rates, increasing the significance of US inflation data due Friday.
In US premarket trading, shares of fintech Chime Financial rose nearly 11% on plans to acquire Stride Bank for $590 million in cash, roughly 1.5 times tangible book value. Chime expects net synergies exceeding $100 million from reduced partner-bank fees, expanded credit products and lower refinancing costs, and said the deal would boost earnings per share immediately. Closing the transaction is scheduled for the first half of 2027. The company also raised its third-quarter outlook, now forecasting revenue of $705 million, up from the prior guide of $680 million to $690 million, and adjusted EBITDA of $117 million to $120 million, versus the previous $105 million to $110 million range. Futures on major US indexes traded 0.4% to 0.7% lower.
Within the SMI, Logitech led with a 1.3% gain, supported by the launch of a new AI-focused developer input device. Only Partners Group, up 0.6%, and Alcon, up 0.1%, joined it in positive territory among blue chips. Luxury names struggled: Richemont fell 3.1%, Swatch lost 1.6%, and travel retailer Avolta slipped 1.8% despite announcing extensions of long-term contracts at four Mexican airports. Traders cited recent Chinese economic and pricing data as a headwind.
Pharmaceutical heavyweight Novartis dropped 0.7%, continuing losses after a sharp reversal the prior day. Analyst commentary turned critical over disappointing trial data for Pelacarsen and Del-Desiran, and Deutsche Bank downgraded the stock from Buy to Hold, noting few near-term catalysts.
DocMorris rose 8.6% to a 16-month high after announcing a new convertible bond issuance of approximately CHF 100 million, part of which will be used to repurchase outstanding convertibles maturing in 2028 ahead of schedule. ZKB highlighted the deal's improvement to operating liquidity. Adecco advanced 1.8% on price-target increases, including one from Vontobel, which viewed artificial intelligence as an opportunity rather than a threat for the staffing firm. Barry Callebaut gained 2.7% following positive remarks from CEO Hein Schumacher at an investor meeting, where he outlined a strategy to concentrate on higher-margin businesses and ten core markets. Lindt rose 2.2% after UBS reaffirmed its buy rating with a lowered price target.
At the weaker end, Medacta fell 3.3% on disappointing half-year margins, Bioversys dropped 3.9% after similar results, and SHL Telemedicine declined 4.2% as interim figures missed.
New analyst actions included Bossard, which saw Berenberg raise its target to CHF 265 from CHF 250, maintaining a Buy; R&S, with Berenberg cutting its target to CHF 29 from CHF 35 but keeping Buy; and SMG, launched by Stifel with a CHF 48 target and a Buy rating. In the US, S&P 500 futures fell between 0.4% and 0.7%.
