Swiss equities drifted lower at the start of the week, with the SMI down 0.25% to 14,423 points by mid-session, as losses among heavyweights Roche and Novartis outweighed gains in Richemont and defensive sectors.
Futures tracking major U.S. benchmarks signaled a softer open, with Dow Jones futures down 0.19%, S&P 500 futures down 0.32%, and Nasdaq futures down 0.80%. The broader SPI edged down 0.2% to 20,276 points. Swiss market sentiment remained fragile ahead of key events later in the week, including Nvidia’s quarterly results due after the U.S. close on Wednesday and the annual Jackson Hole symposium of central bankers.
Analysts cited caution as investors awaited clarity on U.S. economic sanctions against Iran, expected to be detailed by U.S. Treasury Secretary Scott Bessent after European markets close on Monday. Focus is on whether secondary sanctions—targeting countries maintaining economic ties with Iran—could escalate trade tensions, particularly with China. Oil prices remained elevated near $93 per barrel despite a modest pullback, with Brent crude at $93.22 and WTI at $85.53, down 1.1% and 1.9% respectively from Friday’s levels.
Within the SMI, Richemont led gains with a 0.8% rise, extending a two-session rebound after a recent slump. Nestlé added 0.5%, while construction-linked stocks Geberit and Sika gained 0.6% and 0.3% respectively following analyst upgrades. Citigroup raised Geberit’s price target while maintaining a neutral rating, and UBS reaffirmed its buy recommendation for Sika.
Heavyweight losses were led by Roche, down 1.1%, and Novartis, down 0.9%, which together weighed on the broader index despite outperforming the market last week. Logistics group Kühne+Nagel fell 1.5% after reporting the death of majority shareholder Klaus-Michael Kühne. Biopharma names including Santhera, Idorsia, Basilea, Kuros, and Newron also declined between 1.4% and 2.6%.
Vetropack surged 5.8% following a positive analyst note from Berenberg after the company posted strong half-year results on Friday. DocMorris climbed 2.9% after Deutsche Bank raised its price target and maintained a buy rating. The Swiss market showed broad weakness, with 18 of 20 SMI components trading lower in pre-market trading at Julius Bär.
Analysts at Swissquote noted that caution is likely to persist ahead of Nvidia’s earnings and Jackson Hole, where Federal Reserve Chair Kevin Warsh is scheduled to speak on Friday. Market participants are also monitoring oil price dynamics amid ongoing geopolitical risks in the Middle East.
