Swiss equities opened higher on Thursday, extending a positive weekly trend, as investors took relief after the US Federal Reserve delivered its anticipated 25 basis-point rate hike with a unified vote, easing concerns about policy volatility.
The Swiss Market Index (SMI) rose 0.27% to 13,906.75 points by 11:30 CET, while the mid-cap SMIM index climbed 0.96% to 3,049.40 points and the broad SPI gained 0.37% to 19,630.16 points. By 09:28 CET, the SMI had risen 0.29% to 13,909.01, the SMIM was up 1.00% at 3,050.74, and the SPI up 0.41% at 19,637.74.
ABB led the SMI with a 1.3% advance, followed by Logitech and Novartis, each up around 1.2%. Lonza added 0.9% and UBS rose 0.8%, buoyed by an interim parliamentary victory: the Ständerat voted to take up the debate on stricter equity-capital rules for systemically important banks with foreign operations, and councillor Andrea Caroni withdrew his proposal to defer the question to the Federal Council. The full deliberation was postponed to next week on procedural grounds.
Roche, however, fell 0.7% after pre-market strength faded. The drugmaker reported positive clinical-data results, but analysts deemed the impact limited because the treatment is already approved. Alcon, Amrize and Givaudan also posted losses of 0.2% to 0.8%. Nestlé edged up 0.3%.
In the SMIM, Helvetia Baloise surged 3.9% after the insurer released half-year results that Vontobel judged well above consensus, noting strong synergy gains from the merged group. Sandoz rose 1.7% and Galderma gained 0.8%; both stocks will be added to the SMI next week.
Rieter tumbled sharply after UBS pulled the plug and cut its rating from hold to sell, with a 2.00-franc price target. Ypsomed fell 2.2% and Medacta declined 1.4% amid more cautionary analyst commentary. MCH rallied 4.2% and Aevis advanced 2.9% on favorable results.
On valuation changes, ZKB moved to overweight on Avolta from market weight; Burkhalter Research Partners lowered its price target on Avolta to 137.70 Swiss francs from 151 francs, maintaining a hold rating. Octavian upgraded Schindler's participation certificates to buy from hold and raised its target to 320 francs from 310 francs.
US futures rose ahead of open, with Generac jumping roughly 33% after announcing a long-term supply agreement with Amazon for data-center backup power systems worth up to $8 billion. Hubbell, Brown & Brown and Iron Mountain gained 4–5%; AI-related names Vertiv, Marvell and Oracle also advanced, while Lennar fell 2.5%.
European indices also extended gains after Wednesday's Fed decision. The DAX rose 0.7% to 25,705 points, the MDax was up 0.1% at 31,315, and the EuroStoxx 50 gained 0.7%. At midday, the DAX was around 25,670 and the EuroStoxx 50 near 6,304, both up roughly half a percent.
Andreas Lipkow, chief analyst at CMC Markets, said the Fed's firm stance reassured investors, but warned that prolonged high inflation would force the central bank to keep monetary policy tight for longer, increasing downside risks to economic growth.
Falling energy prices provided additional support. Saudi Arabia's announcement that it would begin exporting oil via Oman eased pressure on crude markets and, at least temporarily, the broader inflation debate.
