Switzerland’s SMI slipped 0.8% to 14,400 points by mid-morning trade on Thursday, pressured by declines in defensive bellwethers Nestlé (-1.7%), Novartis (-1.1%) and Roche (-0.9%).
The broader SPI fell 0.7% to 20,286 as Givaudan (-3.0%) and Kühne+Nagel (-3.0%) led decliners after Morgan Stanley downgraded the former to Underweight. Against the trend, Gurit surged 10% to CHF 39.00, its highest level since early July.
Investor caution reflected a mix of profit-taking after the SMI’s seven-day advance and positioning ahead of the annual Jackson Hole central bank symposium. Fed Chair Kevin Warsh is scheduled to deliver remarks on Friday, with markets parsing signals on the near-term interest-rate path. The prior day’s U.S. PCE deflator release showed the Fed’s preferred inflation gauge remaining elevated, while a stronger-than-expected rise in U.S. personal income reinforced expectations for at least one more rate hike in 2024.
Nvidia’s quarterly results, which exceeded consensus estimates on revenue and guidance, provided a lift to tech-linked Swiss names. ABB (+0.4%) edged higher, while AMS Osram (+3.8%), Comet (+1.8%), Inficon (+1.4%), Huber+Suhner (+1.8%) and VAT (+1.6%) also benefited. Accelleron (+3.8%) and Feintool (+4.6%) posted gains following strong half-year figures.
Oil prices extended a weekly decline, with Brent crude down 0.9% to $87.04 per barrel and WTI falling 0.9% to $81.51. The drop followed reports that Iran and Oman were advancing talks on an agreement to ease restrictions on 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, contributing to supply concerns and elevated inflation pressures.
In Europe, the DAX was little changed in pre-market trade after closing Wednesday at 26,285.96 points. U.S. inflation data released on Wednesday tempered risk appetite, with the Dow Jones Industrial Average down 0.21% to 53,463.88, the S&P 500 off 0.02% at 7,675.70 and the Nasdaq 100 up 0.05% at 29,224.52.
The Swiss franc held steady against the dollar at 0.8053 and the euro at 0.9385, while the dollar firmed slightly against the yen to 159.33 and the yuan to 6.7207. Gold rose 0.7% to $4,624.14 per ounce and Bitcoin gained 0.8% to $79,043.18.
