The Swiss SMI recovered from morning losses to trade 0.2% higher at 13,832.90 points, after dipping 0.2% to 13,772.20 before noon and touching an intraday high near 13,850. The Swiss Mid-Cap (SMIM) fell 0.1% to 3,041.27, and the broad SPI lost 0.2% to 19,470.12, with most other European equities also declining.
Copper prices gave up earlier gains, falling 2.2% to $14,440 a tonne on the London Metal Exchange after touching a three-day record high of $14,875 a tonne. Tariff speculation has redirected shipments toward the US, tightening supply elsewhere. Ole Hansen, Saxo Bank's head of commodities strategy, said it remains unclear whether stockpiles built up in America would stay offshore permanently or flow back if the US abandons tariffs, adding that greater short-term volatility should be expected.
US index futures were mixed before the opening bell: Dow Jones futures rose 0.2% to 52,529.00, S&P 500 futures gained 0.1%, while Nasdaq-100 futures dropped 0.2%.
Investors remained cautious ahead of the ECB's rate decision on Thursday afternoon. Markets overwhelmingly expect a 25-basis-point hike, which analysts say is priced in nearly 100%. The forward guidance on future rate path is considered far more consequential, with the possibility of "disappointing surprises," according to traders reducing positions ahead of the announcement.
The SMI has lost more than 600 points this week, erasing gains accumulated over the past three months and returning to roughly mid-June levels. Oil prices continue to underpin macro concerns after the war in the Middle East pushed Brent crude back above $100 a barrel; it traded above $102 on Thursday. Iranian military displays of strength and reports of fresh explosions near the Strait of Hormuz have not pointed toward a de-escalation.
Among SMI constituents, Alcon was the weakest name, sliding 2.2% to 2.4% as traders cited disappointing half-year results and lowered guidance from rival Cooper. Market participants debated whether the weakness reflected company-specific issues or a broader demand softness that could also affect Alcon, leaning toward the latter interpretation. UBS (-1.3%), Roche (-1.1%), Givaudan and Richemont each fell more than 1%; Richemont failed to recover from a prior session drop triggered by a bearish HSBC sector study. Novartis led the index, rising 1.4% to 1.2% after a string of analyst upgrades cited a still-robust medication pipeline, though one expert cautioned future product launches must proceed "almost flawlessly."
Elsewhere, Adecco gained 1.2% to 2.2% and Bachem rose 3.8% to 2.6% on positive analyst notes. DocMorris gave back gains from the previous session, while BZV dropped 4.5% following its half-year results. In London, AB Foods fell as much as 10.5%, its steepest decline in eight months, after Primark reported a 3% revenue contraction in the quarter ending over the weekend — with continental Europe sales down 4.3%, food revenue growing in the mid-single digits, and the sugar division pressured by falling prices.
Roche received Accelerated Assessment status from the US FDA for its drug Enspryng in the treatment of the rare autoimmune disease mogad. Burkhalter was cut to a Hold at Berenberg with a 135-franc price target (from 145 francs).
