The Swiss Market Index (SMI) fell 0.26% on Thursday, with Logitech and Swiss Re leading declines of nearly 3% each as broader market sentiment remained fragile.
Traders cited a temporary easing in volatility following a sharp drop in long-dated U.S. Treasury yields after the Treasury announced plans to increase purchases of 30-year bonds. The 30-year yield fell notably, while the U.S. dollar weakened against the euro and Swiss franc. Analysts noted that the move may reflect technical adjustments to long-term financing costs rather than structural improvements in U.S. fiscal health. The announcement came just days after U.S. federal debt surpassed $40 trillion for the first time.
Oil prices added to market pressure, with Brent crude rising 2% to nearly $94 per barrel. The contract is approaching the $100 mark last seen in late July, raising concerns over renewed inflationary pressures. Traders also highlighted geopolitical risks, including tensions in the Middle East and rising capital needs of major AI firms, as contributing factors to market caution.
Among SMI components, gains were limited and largely concentrated in defensive sectors. Geberit advanced 1.1% after strong half-year results, while Givaudan, Amrize, and Holcim each rose between 0.4% and 1.1%. Health stocks including Roche (+0.4%), Novartis (+0.1%), and Lonza (+0.3%) also edged higher, following Lonza’s gains after positive Moderna-related news.
On the downside, Logitech declined 2.6% after JPMorgan downgraded its outlook, citing a challenging macroeconomic environment. Swiss Re and Sika each fell around 2%, while Implenia dropped 5% following profit-taking after its recent earnings-driven rally.
Outside the SMI, several companies reported half-year results. Centiel surged 12.8% after its recent market debut, while Valartis jumped 15.9% on positive outlook commentary. DocMorris rose 2.8% following better-than-expected half-year figures that suggested a potential path to break-even. Swiss Prime Site gained 1.1%, though Zug Estates was unchanged and BCV fell 2.8%.
Analyst actions added to volatility. UBS downgraded Aryzta to ‘Sell’ from ‘Buy’, sending shares down 4.6% to a multi-year low. Berenberg cut its target for Huber+Suhner, which fell 2.4%, while UBS raised its target for Sonova, which gained 0.9%. The broker cited continued confidence in the hearing aid maker’s end markets.
The SMI’s modest losses followed a slight advance on Wednesday, driven by gains in Roche and Novartis, both up 0.6%. The index had risen nearly 0.5% the prior day on similar sector support. In currency markets, the dollar showed signs of stabilization after Wednesday’s sharp decline. The USD/CHF pair traded at 0.8003, recovering from a low of 0.7969, while EUR/USD held at 1.1672. The Swiss franc pared gains against the euro, with EUR/CHF at 0.9341 after dipping to 0.9307 overnight.
Bitcoin approached $70,000 for the first time since early June, rising to an intraday peak of $69,994. The cryptocurrency has gained over 11% since last Friday, with analysts attributing the move to improving risk sentiment and expectations of regulatory clarity in the U.S. President Donald Trump called on Congress to pass legislation providing clearer definitions for the growing crypto sector.
