The Swiss Market Index (SMI) opened marginally higher on Tuesday, reflecting cautious investor sentiment as regional peers showed mixed performance. The blue-chip index was up 0.11% at 14,463.74 points by 09:30 CET, while the broader SPI rose 0.12% to 20,336.61 and the SMIM mid-cap gauge advanced 0.28% to 3,170.30.
Logitech led SMI advancers with a 1.7% gain, followed by ABB at 1.0%, as both recouped part of Monday’s losses. Amrize fell 1.6% to become the index’s largest decliner after its chief financial officer unexpectedly exited. Nestlé, the SMI’s heaviest weighting, dipped 0.4% despite broader European strength. In small- and mid-cap segments, TX Group surged 5.3% and SMG jumped 7.0% on positive half-year results, while Arbonia tumbled 7.2% after cutting its EBITDA guidance due to software implementation issues. Swissquote climbed 2.3% alongside rising crypto prices, and semiconductor-related names such as VAT, AMS Osram and Inficon gained ahead of Nvidia’s earnings release.
Analysts adjusted ratings and price targets for several Swiss stocks. Vontobel maintained a Hold rating on Allreal with a CHF 213 price target after minor estimate tweaks. DA Davidson initiated coverage of Amrize with a Hold rating and CHF 40.11 target. Berenberg downgraded DKSH to Hold from Buy with a CHF 68 target, while raising Emmi’s target to CHF 950 from CHF 900 on Buy. UBS cut EFG International’s target to CHF 17.20 from CHF 20.70, keeping its Neutral rating. UBS also lifted Sika’s target to CHF 230 from CHF 220 on Buy, and Swiss Life’s target to CHF 940 from CHF 870 on Hold. Barclays reduced Swiss Prime Site to Equal Weight from Overweight with a CHF 125 target from CHF 160.
The Swiss franc weakened 0.15% against the dollar to 0.8037 and 0.1% versus the euro to 0.9369, tracking broader European currency moves. Regional markets showed divergent trends, with the DAX up 0.4% to 26,206.01 amid stronger-than-expected German economic data and lower oil prices, while the CAC 40 also gained. U.S. equity futures pointed to a mixed open, with the S&P 500 and Nasdaq closing Monday in the red as investors weighed new U.S. sanctions against Iran and awaited Nvidia’s earnings.
Geopolitical risks and earnings momentum continued to shape trading. U.S. Treasury sanctions named nearly 60 entities, individuals and vessels linked to Iran, targeting five sectors, though enforcement was deferred for countries maintaining trade ties. The VIX volatility index hit a 2024 low on August 14, coinciding with S&P 500 strength near record levels, according to Datatrek. Historically, VIX troughs tend to occur in late-year months, with October historically volatile and now carrying a more than 50% probability of a U.S. rate hike, the firm noted.
As earnings season progresses, Swiss companies reporting half-year figures included LUKB, Arbonia, BCGE, Cham SP, Epic, Molecular Partners, Orior, SMG, TX Group, Valartis and VP Bank. In Asia, the Nikkei fell 0.5% to 65,197.7 as chip stocks tracked U.S. peers lower ahead of Nvidia’s results. The broader Topix edged up 0.06% to 4,075.83, with shipping equities gaining 2.91% as Middle East tensions supported the sector.
