Swiss equities opened the week lower after U.S. markets closed for a holiday. In pre‑market trading the Swiss Market Index (SMI) fell 1.2% to 14,221 points, while the broader Swiss Performance Index (SPI) slipped 1.1% to 19,982 points.
The franc strengthened, with 1 USD quoted at 80.89 rappen, down 0.15% from Monday’s level above 81.00 rappen. The move follows a weaker U.S. dollar that also lost up to 1.4% against the Japanese yen, trading at 154.07 yen, its lowest level in seven months.
Among the SMI constituents, Kühne+Nagel led gains, up 1.1% and briefly topping the index. In contrast, Novartis was the biggest dragger, falling roughly 3% after a Phase III trial of its experimental cholesterol‑lowering drug Pelacarsen failed to demonstrate a reduction in heart‑attack and stroke risk. Analysts consequently removed revenue forecasts for Pelacarsen, which had been projected to generate $1.3‑$2.0 billion in peak sales. The setback echoed a 5% drop in Amgen shares on Friday, where a similar drug is under development.
Other pharmaceutical names also slipped: Roche declined 1.5%, Lonza 1.2% and Sandoz 0.9%. Swiss Re fell 1.9% amid warnings of rising reinsurance costs from storms and wildfires.
Industrial and technology stocks showed mixed performance. ABB rose 0.8% and VAT gained 1.1% after strong demand for chip‑related equipment in Asia. Conversely, Schindler dropped 3.1% to 252.60 CHF after Goldman Sachs cut its rating to "Sell" and lowered the price target to 233 CHF, citing a soft Chinese market and limited upside from efficiency programmes.
Med‑tech firms Alcon, Sonova and Straumann each lost between 1.3% and 1.5%. The transformer maker R&S fell 4.1% following the departure of CEO Eduardo Terzi; Zurich Cantonal Bank noted that while the leadership change creates short‑term uncertainty, it could offer a fresh strategic start.
Construction‑related stocks rallied. Arbonia surged 15% after UBS upgraded its rating to "Buy" and lifted the price target by roughly 50%, deeming the valuation 30% below its historic average and 50% below peers. COMET, Huber+Suhner, Inficon, AMS Osram, Komax and others posted gains ranging from 1.2% to 2.8%.
In the broader market, the U.S. Dow Jones Industrial Average slipped 0.52% in after‑hours trading, the S&P 500 fell 0.17%, and the Nasdaq‑100 was essentially flat. The declines were attributed to the Friday U.S. jobs report, which reinforced expectations of higher Federal Reserve policy rates and reduced the appeal of non‑interest‑bearing equities.
The Japanese yen received support after the Bank of Japan, which raised its policy rate to 1% in June – a 31‑year high – is expected to decide on further moves on 18 September. Traders remain alert to possible intervention after the yen’s recent rally.
Wind‑turbine maker Nordex topped the German MDAX with a 10.7% jump, following a Bank of America recommendation to buy.
Overall, the Swiss market’s downward momentum was driven by negative pharma news, a stronger franc, and lingering concerns over global interest‑rate trajectories.
