The Swiss equity market is set to open cautiously as blue-chip indices show little direction ahead of the new trading week.
The Swiss franc strengthened 0.10% against the euro to 0.9348 CHF per EUR and gained 0.11% versus the dollar to 0.8004 CHF per USD. The dollar eased 0.10% to 158.87 JPY and slipped 0.03% to 6.7235 CNY, while the euro traded flat at 1.1681 USD.
Asian equities reflected a subdued tone to start the week. Japan’s Nikkei 225 was virtually unchanged at 65,968.71, while the broader Topix edged up 0.3% to 4,080.30. Chinese benchmarks declined, with the Shanghai Composite down 0.6% at 3,880.33 and the Shenzhen Component Index falling 1.1% to 4,566.57. Regional tech shares came under pressure, with SoftBank Group dropping 3.3% and Fujikura down 3.5%. Tokyo Electron was an outlier, rising 2.1%.
Analysts cited profit-taking in semiconductor names as a key drag, with Nomura Securities strategist Wataru Akiyama noting that concerns over chipmakers’ profitability were being used as justification for broader selling. Geopolitical risks also weighed on sentiment, with investors monitoring potential U.S. sanctions on Iran and escalating trade tensions between the U.S. and Canada. In South Korea, Samsung Electronics slumped 8.0% after disappointing investors with a $79 billion share buyback program that fell short of expectations, while SK Hynix gained 0.4%. Analysts attributed the disparity to SK Hynix’s buyback plan, which Samsung did not match.
Macro headwinds persisted, with inflation concerns and expectations of a Bank of Japan rate hike in September adding pressure. Investors also awaited remarks from U.S. Federal Reserve Governor Kevin Warsh on Friday for further clues on monetary policy.
Commodity markets saw Brent crude decline 1.5% to $92.94 per barrel, while U.S. WTI fell 1.7% to $85.61, reversing part of the previous week’s gains. Traders adopted a cautious stance ahead of remarks by U.S. Treasury Secretary Scott Bessent, who was expected to detail planned sanctions against Iran. The Strait of Hormuz remains a key chokepoint for global oil flows, with no indication of de-escalation in the conflict.
On Wall Street, the Dow Jones Industrial Average rebounded 0.98% to 53,277.01 on Friday, paring some of its earlier weekly decline of 0.8%. The S&P 500 added 0.43% to 7,674.37, while the Nasdaq 100 rose 0.33% to 29,308.86, snapping a four-day losing streak. For the week, the S&P 500 fell 1.4% and the Nasdaq 100 dropped 2.5%.
Gold prices extended gains to fresh highs since May, lifting mining stocks such as Newmont and Barrick, which each rose around 3%. The rally followed an unexpected announcement by the U.S. Treasury to increase purchases of long-dated government bonds, aimed at reducing borrowing costs. Copper miners outperformed, with Freeport-McMoRan hitting record highs and Southern Copper approaching its peak.
Cryptocurrency-linked equities surged, with Strategy, Coinbase, and Robinhood Markets gaining 6.0%, 8.2%, and 13.7%, respectively. Analysts attributed the Bitcoin-driven rally to a combination of dovish monetary signals, supportive policy developments, and a sharp unwinding of futures positions.
Among the Magnificent 7, Tesla shares climbed over 5%, nearly closing a downside gap from a month ago, while Nvidia slipped 1.0% ahead of its quarterly earnings release on Wednesday. Broadcom is in talks with lenders to secure more than $60 billion in financing for AI chip initiatives, according to people familiar with the matter, with Anthropic among potential beneficiaries. Broadcom shares ended 1.2% higher after an initial gain of 3.0%.
Retailer Ross Stores surged 4.4% after raising its full-year profit guidance following a strong quarter. Pharmaceutical stocks Moderna and Merck & Co also advanced, with Moderna up 8.9% and Merck gaining 2.4% on Friday, extending gains from midweek news of a breakthrough in a melanoma vaccine. Goldman Sachs led Dow advancers with a 3.7% rise.
