The Swiss equity market pared early losses on Monday, with the SMI slipping 0.04% to 14,451 points after opening lower, while the broader SPI edged down 0.01% to 20,314.
Sentiment remained cautious ahead of key events later in the week, including Nvidia’s quarterly results due after U.S. markets close on Wednesday and the Federal Reserve’s annual Jackson Hole symposium, where new Chair Kevin Warsh is scheduled to speak on Friday. Analysts noted that geopolitical risks, particularly the impending U.S. announcement on Iran sanctions, could keep markets on edge through midweek.
Oil prices held elevated near $93 per barrel despite a modest pullback from Friday’s peaks, as uncertainty over Middle East tensions maintained support for Brent crude at $93.22 per barrel, down 1.1% on the day, and U.S. WTI at $85.53 per barrel, down 1.9%. The recent surge in oil prices—up nearly 20% from early August lows—reflects stalled U.S.-Iran negotiations and the potential for secondary sanctions targeting countries maintaining economic ties with Iran.
Among sector movers, construction-linked stocks led gains, with Amrize climbing 1.3%, Holcim up 1.0%, Geberit adding 0.6%, and Sika rising 0.4%. Geberit received a bullish outlook from Citigroup, which raised its price target while maintaining a Neutral rating, while UBS reiterated a Buy recommendation for Sika. Richemont also advanced 1.3%, extending a recent recovery after a prior weak stretch.
Pharma heavyweights Roche and Novartis weighed on the SMI, declining 1.3% and 0.3%, respectively, despite Novartis paring some of its opening-session losses. Kühne+Nagel fell 1.5% following the announcement of the death of majority owner Klaus-Michael Kühne. Sonova slipped 0.3% despite the launch of a new AI-powered hearing aid generation, as analysts cited strong competition in the sector.
In broader market action, Vetropack surged 5.8% following Friday’s strong half-year results, while DocMorris gained 2.9% after Deutsche Bank upgraded its price target and maintained a Buy rating. Biopharma stocks underperformed, with Santhera, Idorsia, Basilea, Kuros, and Newron all declining between 1.4% and 2.6%.
European and U.S. equity futures suggested limited movement at the open, with the DAX expected to track Monday’s modest gains after closing Friday up 0.6% at 26,136 points. Analysts highlighted lingering concerns over fiscal sustainability, elevated oil prices, and rising bond yields as constraints on further upside in major indices.
