The Swiss stock market showed a slight positive trend on Friday. The SMI index rose by 0.68 percent, reaching 14,003.96 points. Among the 20 SMI stocks, 17 were in the green. The Mid-Cap SMI index gained 0.83 percent to 3,124.96 points, and the broad SPI index increased by 0.70 percent to 19,843.41 points.
UBS and ABB saw significant gains of more than 2 percent each. UBS is rumored to be considering a potential merger with Morgan Stanley to comply with stricter capital requirements set by the Swiss government. ABB's recent presentation of its data center architecture also contributed to its positive performance.
Nestlé, however, saw a decline of 0.5 percent, marking a 1.2 percent drop since the start of the year. The company's performance was weighed down by the broader market conditions.
The decline in oil prices due to new hopes for peace in the Iran conflict also contributed to the positive sentiment on the Swiss stock market. The travel and tourism sector stocks gained 1.4 percent, with TUI and Lufthansa titles rising by around 2 percent each. IAG and Air France-KLM also saw gains of 1.6 and 2.4 percent, respectively. Ryanair stocks, on the other hand, rose by 1.3 percent.
The German DAX index also saw a gain of 0.7 percent to 25,454 points, driven by the decline in oil prices and new diplomatic signals in the Iran conflict. Siemens Energy and Deutsche Bank were among the top gainers in the DAX, rising by more than 2 percent each. Airbus, however, saw a decline of 1.6 percent, citing a quality issue in its A321neo aircraft, although it is not a safety concern.
Several Swiss stocks saw changes in their ratings and price targets. Vontobel reduced the price target for Amrize to 46 Swiss francs from 50 Swiss francs, maintaining its Buy rating. UBS increased the rating for Glencore to Buy from Hold, with a price target of 650 pence. Octavian reduced the price target for Newron to 15 Swiss francs from 17 Swiss francs, maintaining its Hold rating. Research Partners reduced the rating for Stadler Rail to Hold from Buy, increasing the price target to 35 Swiss francs from 30.60 Swiss francs. Oddo increased the price target for Temenos to 73 Swiss francs from 68 Swiss francs, maintaining its Neutral rating. Octavian reduced the price target for Ypsomed to 370 Swiss francs from 380 Swiss francs, maintaining its Hold rating.
The Swiss franc continued to weaken against the euro and the US dollar. The euro was trading at 0.9430 Swiss francs, down from 0.9420 Swiss francs the previous day. The Swiss franc was trading at 0.8292 against the US dollar, down from 0.8282 the previous day.
HelloFresh reduced its annual targets due to a surprise drop in demand. The company expects revenue to grow by 9 to 11 percent instead of the previously expected 3 to 6 percent. The operating profit is also expected to decrease to 350 to 370 million euros from 375 to 425 million euros. The stock price fell by 7 percent in response to the news.
The Swiss Market Index (SMI) is expected to open higher on Friday, with a 0.4 percent gain, following positive cues from overseas. The focus of market participants remains on the interest rate developments and oil prices.
The US stock market saw a significant decline in MGM Resorts' stock price by 8.6 percent after reports of the withdrawal of Barry Diller's takeover offer. The Vaneck Space ETF, on the other hand, saw a significant gain of 4.5 percent, despite a generally subdued trading session.
Asian markets showed resilience despite a global sell-off in bonds. The Nikkei index in Tokyo gained 1.2 percent to 66,318.14 points, and the broader Topix index rose by 1.2 percent to 4,123.73 points. Trading volumes were thin due to holiday closures in some markets.
The rising bond yields have been a major concern for investors, with the ten-year Japanese government bond yield reaching its highest level since 1996. Nigel Green, chief of deVere Group, warned that the world's bond markets are screaming, and ignoring them could be very expensive. He noted that once the risk-free rates in the US exceed five percent, every asset class will need to justify its price.
