The Swiss equity market opened higher on Wednesday, with the benchmark SMI gaining 0.14% to 14,538 points, extending gains from the prior session. The broader SMIM index edged up 0.1%, while the Euro Stoxx 600 futures indicated a 0.12% advance. Support came from U.S. markets, where major indexes rose after European close, buoyed by falling oil prices and lower Treasury yields.
Among blue-chips, UBS led gainers with a 0.9% rise, while Amrize declined 1.9% as it attempted a rebound from an all-time low. Kühne+Nagel fell 1.1%, Lonza dropped 0.8%, and Alcon eased 0.5%. Logitech gained 0.3%, while VAT slipped 0.3% ahead of Nvidia’s quarterly results, which are expected to show revenue more than doubling but may still disappoint given elevated expectations.
SoftwareOne surged 8.6% in early trading after reporting earnings that exceeded forecasts, with both revenue and profitability rising. The software company also upgraded its outlook. Stadler Rail advanced 4.9% premarket after posting revenue and order growth that outpaced expectations, though its EBIT margin improved while earnings fell short of estimates. DocMorris dropped 3.9% premarket after Jefferies downgraded its rating from Buy to Hold despite raising the price target, citing strong prior performance. The brokerage also raised its target for rival Redcare and maintained a Buy rating.
In commodities, gold prices eased 0.3% to $4,642.74 per ounce after reaching a three-month high the prior day, as investors awaited the U.S. PCE inflation report due Wednesday afternoon. The report is seen as critical for Fed policy expectations, with a 40% probability of a September rate hike currently priced in. Fed Chair Kevin Warsh is also scheduled to speak at the Jackson Hole symposium on Friday, where markets will seek further guidance on monetary policy.
Brent crude oil fell 2.5% to $86.35 per barrel, while WTI declined 2.4% to $80.39, extending declines for a third straight session. The drop followed reports of resumed talks between Iran and Oman regarding the Strait of Hormuz, easing concerns over potential supply disruptions. The yen strengthened 0.1% to 158.97 per dollar, while the Swiss franc traded at 0.8033 versus the greenback and 0.9370 per euro. The euro was little changed at 1.1664 per dollar.
Market focus remains on U.S. economic data, including the July PCE inflation reading, and central bank signals. ECB President Schnabel reiterated in a Bloomberg interview that rates must rise further to combat inflation, though the euro showed little reaction. The Swiss franc’s stability and lower U.S. yields contributed to a calmer risk environment, while geopolitical developments and earnings season continued to drive sector-specific moves.
