Switzerland’s benchmark SMI index fell 1% to 14,400 points on Thursday, weighed down by declines in heavyweights Nestlé, Novartis and Roche, while the broader SPI slipped 0.7% to 20,286.
Defensive positioning in the SMI, which is sensitive to interest-rate expectations, reflected investor caution ahead of the annual Jackson Hole central-banking symposium. The focus there is on a Friday speech by U.S. Federal Reserve Governor Kevin Warsh, with markets parsing signals on the near-term rate path. The Fed’s preferred inflation gauge, the core PCE deflator, remained elevated, while U.S. personal income surged unexpectedly, reinforcing bets for at least one more rate hike in 2024.
Oil prices eased below $90 per barrel, with Brent crude last at $87.01, down about 6% since Monday. The decline followed reports that Iran and Oman were advancing talks on reopening the Strait of Hormuz, a critical chokepoint for global oil and gas shipments. The waterway has been largely blocked since the U.S.-Iran conflict escalated six months ago, stoking supply concerns and inflation fears.
Among individual movers, Givaudan dropped 3% after Morgan Stanley downgraded the stock to “Underweight,” citing weaker-than-expected fragrance performance and limited margin expansion. The bank also flagged the stock as a candidate for profit-taking following a 7% gain over the prior six sessions. Kühne+Nagel fell 2.7% after Bloomberg reported a U.S. Bureau of Industry and Security probe into its Singapore-based unit Apex over alleged illegal shipments of Nvidia AI chips to China.
The trio of Nestlé, Novartis and Roche—each down between 0.8% and 1.7%—accounted for the largest drag on the SMI. Nestlé’s slide extended its retreat from a July 17 peak of 87.09 francs, while ZKB downgraded the stock to “Market Weight” from “Overweight.” In contrast, ABB rose 0.7% on spillover strength from Nvidia’s blowout results, lifting related Swiss industrials including AMS Osram (+2.1%), Comet (+1.6%), Inficon (+0.8%), Huber+Suhner (+2.4%) and VAT (+1.4%).
Gurit surged 10% to 39.00 francs, its highest level since early July, after reporting strong results. Accelleron and Feintool also advanced 2.4% and 4.6%, respectively, on positive earnings news. Software names such as SAP gained 2.1% in early Frankfurt trading after Salesforce lifted its annual targets, while CrowdStrike’s raised revenue guidance boosted cybersecurity sentiment.
