The Swiss Market Index (SMI) was down 0.22% in pre-market trade on Monday, with 18 of 20 components declining. Losses were led by pharmaceutical heavyweights Roche (-0.7%) and Novartis (-0.3%), while Sika (+0.6%) and Geberit (+0.2%) posted gains.
European equities were set for a subdued start, with the DAX expected to open little changed after Friday’s 0.6% advance to 26,136 points. U.S. benchmarks also rebounded last week but gains were capped by concerns over ballooning government debt, elevated oil prices and rising bond yields. Geopolitical developments remained a key focus, with U.S. Treasury Secretary Scott Bessent scheduled to outline further sanctions against Iran at 20:00 CEST. The measures aim to pressure Tehran amid ongoing regional tensions.
In Asia, regional equities showed caution. Japan’s Nikkei 225 was nearly flat at 65,968.71 points, while the broader Topix edged up 0.3% to 4,080.30. China’s CSI 300 fell 1.1% to 4,566.57, with the Shanghai Composite down 0.6% at 3,880.33. Semiconductor-related stocks in Tokyo came under pressure ahead of Nvidia’s quarterly earnings on Wednesday, with Fujikura down 3.5% and SoftBank down 3.3%. Tokyo Electron gained 2.1%.
In South Korea, Samsung Electronics slumped 8% after its $79 billion share buyback program disappointed investors. Rival SK Hynix rose 0.4%, as the absence of a buyback plan weighed on sentiment. Broader concerns over inflation and potential Bank of Japan rate hikes in September also weighed on the market. Investors awaited remarks from Federal Reserve Governor Kevin Warsh on Friday for further policy signals.
The U.S. dollar was mixed against major peers. It gained 0.1% to 158.87 yen and strengthened to 6.7235 yuan, but eased 0.1% to 0.8000 Swiss francs. The euro traded at $1.1681, down 0.1% against the dollar, and slipped to 0.9345 francs. The Canadian dollar came under mild pressure ahead of potential trade measures from the U.S.
Commodities showed divergent moves. Brent crude oil fell 1.5% to $92.94 per barrel, while U.S. WTI declined 1.7% to $85.61. Prices retreated after last week’s sharp gains, with traders awaiting details on potential U.S. sanctions against Iran. The Strait of Hormuz, a critical oil transit route, remains disrupted amid ongoing regional conflicts.
Gold extended gains, rising 0.75% to $4,637 per ounce — the highest since May. The rally followed the U.S. Treasury’s surprise announcement to increase purchases of long-duration Treasuries, aimed at lowering borrowing costs. The move stoked demand for non-yielding assets amid concerns over dollar debasement. Gold mining equities such as Newmont and Barrick Mining rose around 3%, while copper miners surged on supply tightness, with Freeport-McMoRan hitting record highs and Southern Copper nearing new peaks.
Cryptocurrency-linked stocks also benefited from a strong week for Bitcoin, with Strategy and Coinbase up roughly 6% and 8%, respectively, and Robinhood Markets jumping 13.7%. Analysts attributed the Bitcoin surge to a mix of dovish policy signals, geopolitical tailwinds and a sharp liquidation wave in futures markets.
Among the Magnificent 7, Tesla shares advanced over 5%, nearing the gap created a month ago. Broader U.S. equity benchmarks ended Friday mixed: the Dow Jones rose 0.98% to 53,277.01, paring some of Thursday’s losses, while the S&P 500 gained 0.43% to 7,674.37 and the Nasdaq 100 rose 0.33% to 29,308.86. For the week, the S&P 500 fell 1.4% and the Nasdaq 100 lost 2.5%.
