The Swiss Market Index (SMI) was poised for a higher open on Tuesday, with futures indicating a 0.16% gain, while the Swiss franc weakened further against the dollar and euro. The dollar advanced 0.15% to 0.8037 francs, and the euro rose 0.1% to 0.9369 francs. Brent crude futures remained above $93 per barrel at $93.67, up 0.53%, as geopolitical tensions in the Strait of Hormuz persisted following another reported attack on an oil tanker.
Analysts issued a flurry of rating and price-target revisions for Swiss equities. Vontobel maintained a Hold rating on Allreal with a target of CHF 213, following minor estimate adjustments. DA Davidson initiated coverage of Amrize with a Hold rating and a target of CHF 40.11. Berenberg downgraded DKSH to Hold from Buy, setting a target of CHF 68, while raising Emmi’s target to CHF 950 from CHF 900 and maintaining a Buy rating. UBS trimmed EFG International’s target to CHF 17.20 from CHF 20.70, keeping a Neutral rating. Vontobel cut Siegfried’s target to CHF 100 from CHF 105 but retained a Buy call. UBS lifted Sika’s target to CHF 230 from CHF 220, maintaining a Buy rating. Kepler Cheuvreux raised Swiss Life’s target to CHF 940 from CHF 870, keeping a Hold rating, while Barclays downgraded Swiss Prime Site to Equal Weight from Overweight and reduced its target to CHF 125 from CHF 160.
In the SMIM mid-cap segment, Ems led gains with a 1.1% advance, while DKSH lagged with a 1.4% decline after its downgrade. Other components showed modest strength. The SMI’s upward bias contrasted with losses in major global peers: the DAX closed Monday at 26,106.60 points, down slightly, and U.S. tech-heavy indices slipped as investors weighed new U.S. sanctions against Iran and geopolitical risks in the Middle East.
U.S. officials announced expanded sanctions targeting nearly 60 entities, individuals and vessels linked to Iran, while deferring penalties for countries maintaining trade ties with Tehran. The measures aim to pressure Iran to reopen the Strait of Hormus, a critical chokepoint for global oil and gas flows. Iran has repeatedly restricted vessel traffic through the strait, demanding ships use a designated Iranian-controlled route and warning of severe consequences if the U.S. escalates economic pressure.
In Asia, chip-related equities came under pressure as investors awaited Nvidia’s quarterly results, expected Wednesday. The Nikkei 225 fell 0.5% to 65,197.7 points, while the broader Topix edged up 0.06% to 4,075.83. The shipping sector was the top performer among 33 Tokyo Stock Exchange industry sub-indices, rising 2.91%, as geopolitical risks in the region supported defensive positioning. In Japan, chip equipment makers Advantest and Tokyo Electron declined 3.33% and 1.03%, respectively, while Kioxia fell 1.37%. Samsung Electronics dropped 3.5% after its record $79 billion shareholder return plan disappointed investors.
U.S. markets closed Monday with the S&P 500 and Nasdaq lower, pressured by technology shares amid rising Middle East tensions and ahead of key data releases, including an inflation report later in the week. The VIX volatility index hit a multi-month low on August 14, reflecting subdued risk sentiment despite elevated geopolitical risks. Historically, the VIX tends to trough in late-year months, though October has been the most volatile period, coinciding with a 50% probability of a Federal Reserve rate hike this month.
Domestically, the earnings season continued with regional banks and mid-cap companies reporting. LUKB released quarterly results, while Arbonia, BCGE, Cham SP, Epic, Molecular Partners, Orior, SMG, TX Group, Valartis and VP Bank published half-year figures.
