The Swiss Market Index (SMI) opened 0.21% higher on Wednesday, extending Tuesday’s modest gain as defensive heavyweights and select mid-cap performers offset broader pressure from rising bond yields and elevated oil prices.
Geberit led advances among SMI components, surging 8% after reporting half-year results that exceeded analyst expectations. The Sanitary Technology group cited positive momentum in its core markets, reinforcing its defensive appeal amid macro headwinds. Implenia also gained 8%, following its half-year report, while Sensirion rose 6%, LLB advanced 4% and Sunrise climbed 1.5%. VAT, a semiconductor equipment supplier, edged up 0.6% after Jefferies upgraded its rating to Hold from Underperform and raised its price target.
The gains were countered by declines in Straumann and BKW, each down 4.5%, and Emmi, which fell 1.7%. Burckhardt Compression gained 1.2% as investors reacted to its restructuring plan aimed at addressing low capacity utilization, including staff reductions.
Global markets remained under pressure from rising long-term bond yields, which hit multi-decade highs. The 30-year U.S. Treasury yield reached its highest level in nearly 20 years, while 10- and 30-year German bund yields climbed to their highest since 2011. Analysts attributed the move to mounting concerns over unsustainable government debt levels. The risk-off tone weighed on equities, with the Nasdaq 100 falling 1.68% to 29,490.96, the S&P 500 dropping 0.69% to 7,691.76 and the Dow Jones Industrial Average easing 0.22% to 53,343.40.
Oil prices rose as negotiations to reopen the Strait of Hormuz for tanker traffic stalled. Brent crude increased 0.7% to $91.61 per barrel, while U.S. West Texas Intermediate (WTI) climbed 0.8% to $85.61. The geopolitical backdrop was further complicated by escalating tensions in the Middle East, with U.S. President Donald Trump stating that no negotiations were underway with Iran following the expiration of a 60-day framework agreement.
In currency markets, the dollar weakened 0.2% against the yen to 159.31, nearing the 160 level that has historically triggered speculation of Bank of Japan intervention. The euro held steady at $1.1584, while the Swiss franc remained flat against the euro at 0.9400 and strengthened slightly against the dollar to 0.8116.
Among global peers, the Nikkei 225 fell 2.6% and the Shanghai Composite declined 1.8%, reflecting the broad risk-off sentiment driven by higher yields and energy costs. Analysts warned that the combination of rising long-term interest rates, geopolitical risks, elevated energy prices and potential disappointment in AI earnings could undermine equity valuations, even as the broader uptrend in U.S. equities remained intact, contingent on sustained earnings growth and stable financing conditions.
