Switzerland's benchmark SMI dropped below 14,000 points for the first time since mid-June, extending losses that have persisted since the start of the week. The index traded at 13,919, down 1%. The mid-cap SMIM fell 0.7% to 3,064, and the broader SPI slid 0.9% to 19,666.
US index futures pointed lower, trading between 0.4% and 0.7% in the red. Across Europe, most indices also sat clearly in negative territory, weighed by surging oil prices and the inflation and interest-rate concerns they revive.
Brent crude climbed to $100 a barrel for the first time since July, fueled by escalating conflicts in the Middle East. The Stoxx sector index for oil and gas rose 0.8%, sitting just 0.5% below its early May record high. Gas prices for the nearest delivery month rose a further 4%, adding pressure on northern Europe's already-tight storage outlook.
On the Swiss bench, Logitech led with a 1.3% gain after launching a new AI-targeted controller aimed at developers. Partners Group rose 0.6% and Alcon edge up 0.1%. At the other end, Richemont shed 3.1% and Swatch fell 1.6%, weighed down by recent Chinese economic and pricing data. Travel retail operator Avolta dropped 1.8% despite announcing extensions of long-term contracts at four Mexican airports.
Pharma faced renewed pressure. Novartis slipped 0.7% to 0.8%, unable to recover from steep selling the previous session following disappointing trial data for Pelacarsen and Del-Desiran. Deutsche Bank downgraded Novartis to "Hold" from "Buy," citing few near-term catalysts. Medacta fell 3.3% on weaker-than-expected H1 margins, while Bioversys dropped 3.9% and SHL Telemedicine shed 4.2% after poor semester results.
Chime Financial surged roughly 11% in US pre-market trading after announcing it would acquire Stride Bank for $590 million in cash — about 1.5 times tangible book value. The company projects net synergies exceeding $100 million from lower partner-bank fees, expanded credit products and significantly cheaper refinancing, and says the deal will be accretive to earnings per share immediately. Management also raised full-year guidance: third-quarter revenue is now forecast at $705 million, above the prior 680–690 million range, and adjusted EBITDA is targeted at $117–120 million, versus the previous 105–110 million estimate. The transaction is expected to close in the first half of 2027.
Meta rose around 5% in US pre-market trading ahead of the launch of Muse, a personal AI agent designed to carry out tasks across multiple apps and online services. CEO Mark Zuckerberg said Muse stores user and access data on an isolated virtual machine, with a separate security system reviewing data and actions before they reach the internet. The company also opened its bug-bounty program to the public, with rewards scaled to the severity of discovered vulnerabilities.
Among Swiss names, DocMorris jumped 8.6% to a 16-month high after announcing a new convertible bond issue of approximately CHF 100 million, partly to repurchase outstanding convertibles maturing in 2028; the ZKB praised the move for improving operating liquidity. Adecco gained 1.8% following price-target increases including from Vontobel, which sees AI as an opportunity rather than a threat to the staffing firm. Barry Callebaut rose 2.7% after CEO Hein Schumacher outlined a "Focus for Growth" strategy centered on higher-margin businesses and ten core markets. Lindt advanced 2.2% after UBS reaffirmed its buy rating, albeit with a reduced target.
European retail stocks struggled, with the sector shedding 1.5% to a three-month low after Inditex reported a weaker-than-expected second-quarter profit; Zara parent Inditex fell 3%. Within Switzerland, no sector aside from utilities (+0.6%) posted gains. Cyclical consumer stocks fell 2%, industrials dropped 1.2%, and non-cyclical consumer slipped 0.9%.
