The Swiss Market Index (SMI) opened 0.1% higher on Thursday, with gains led by pharmaceutical heavyweights Roche and Novartis, each up 0.6%, following a 0.46% advance the prior session.
The modest rebound reflected a partial easing of market jitters after the U.S. Treasury announced plans to double purchases of long-dated Treasuries, easing pressure on 30-year yields that had surged to 2007 highs. The move weighed on the U.S. dollar, with the USD/CHF pair slipping to 0.7996 from intraday lows near 0.7969, while EUR/USD held near 1.1675. The franc pared earlier gains against the euro, with EUR/CHF trading at 0.9335.
Oil prices remained elevated, with Brent crude rising 0.3% to $91.87 per barrel as shipping disruptions through the Strait of Hormuz persisted amid the Iran conflict. U.S. crude (WTI) was little changed at $85.84. Gold prices retreated to $4,492.56 per troy ounce after earlier gains.
Among individual SMI components, Logitech declined 1.3% following a JPMorgan downgrade, while Centiel, a recently listed industrial firm, surged 18% after an analyst upgrade. BCV fell 3% following its half-year results, and Aryzta slumped 6% after UBS downgraded its rating to "Sell" from "Buy". Huber+Suhner advanced 2.6%.
Analysts at Julius Bär and IG Bank projected the SMI to open 0.16% and 0.12% higher, respectively, with 19 of 20 index components in positive territory. Roche led gains at 0.52%, while Logitech fell 0.4%. The broader market saw Aryzta drop over 6%, alongside UBS’s downgrade to "Sell".
In Asia, Japan’s Nikkei 225 rose 1.2% and Shanghai’s composite gained 0.2%, though sentiment remained cautious. Cusson Leung, chief investment officer at KGI, warned that increased Treasury buybacks could trigger further institutional selling.
U.S. equities closed mixed on Wednesday, with the Dow Jones Industrial Average up 0.22% at 53,463.05, the Nasdaq 100 down 0.22% at 29,426.02, and the S&P 500 gaining 0.21% to 7,707.98. Moderna’s shares soared 177% to $157.95 after a successful melanoma vaccine study with Merck & Co, lifting its market cap by $44 billion to $70 billion. Merck’s stock rose 12.6%, while BioNTech jumped 22%.
Gold miners Agnico Eagle and Barrick Mining gained 11% and over 7%, respectively, as the precious metal rallied on falling U.S. yields. Marvell Technology surged 10% after announcing a strategic partnership with Alphabet, granting the latter options to acquire up to $12.2 billion in Marvell shares. Alphabet closed modestly higher, while Broadcom fell 4.6% on the news.
