The Swiss equity market extended losses on Wednesday, tracking a broad global downturn as investors reassessed risk amid surging oil prices, persistent inflation concerns and heightened expectations for central-bank tightening.
The benchmark SMI declined 0.4% to 14,280 points by mid-morning, while the Mid-Cap SMIM slipped 0.3% to 3,085 and the broader SPI fell 0.3% to 20,084. Defensive heavyweights Roche and Swiss Life were among the few gainers, each up 0.6%, while Amrize slumped 2.7% after Bank of America downgraded the stock to Underperform and cut its target to 32 francs from 40 francs.
Nestlé slid 1.0% after agreeing to sell its mainstream vitamins, minerals and supplements business to U.S. private-equity firm Yellow Wood Partners for $1 billion, shifting focus to premium nutrition. The disposal follows a broader restructuring by the food giant.
Technology shares outperformed, with VAT Group gaining 2.3%, Comet 2.2% and Inficon 0.6%, as UBS raised price targets for all three names to 800 francs, 490 francs and 446 francs respectively, citing strong demand and supportive end-market dynamics. The upgrades followed robust quarterly results from Dell, which provided a lift to global tech sentiment.
Geopolitical tensions in the Middle East continued to stoke energy-price volatility, with Brent crude rising 0.9% to $95.45 per barrel and U.S. WTI up 0.6% to $90.74, the highest since late July. The gains reflected renewed U.S.-Iran hostilities and the effective closure of the Strait of Hormuz, a critical chokepoint for global oil and gas flows. Asian equities reacted sharply, with Japan’s Nikkei down as much as 2.8% and South Korea’s Kospi falling 3.8%.
Central-bank policy expectations firmed after Brent’s surge pushed sovereign bond yields to multi-year highs. The European Central Bank is widely expected to raise rates next week, while markets price a near-60% chance of a U.S. Federal Reserve hike in September following hawkish remarks from Fed Chair Kevin Warsh. New Zealand’s central bank delivered a 25-basis-point increase to 2.75% on Wednesday, underscoring the global tightening bias.
The Swiss franc weakened modestly against the euro and dollar, with EUR/CHF at 0.9411 and USD/CHF at 0.8127, as rising inflation risks reduced safe-haven demand for the currency. The euro was little changed at $1.1580 after overnight losses.
In corporate news, Montana Aerospace, a supplier to the aerospace and defense sectors, appointed Michael Tojner as Executive Chairman following the surprise departure of CEO Kai Arndt in April, and UBS initiated coverage with a Buy rating. The moves followed a leadership transition aimed at stabilizing the company amid operational challenges.
