The Swiss Market Index (SMI) opened the trading day in the red, down 1.0% at the start and later reported a broader decline of 1.4% as of the latest update. The drop was driven primarily by Novartis, whose shares tumbled more than 10% at 09:45 a.m., settling at CHF 112.54. The move extended the stock’s prior‑day loss of 3.2% and marked the steepest single‑day decline for the pharma giant since 2020.
Novartis’ slide follows the announcement that its heart‑failure drug Pelacarsen failed to meet its primary endpoint, and that Del‑desiran, aimed at treating myotonic dystrophy type 1, also missed its main goal in a Phase‑III trial. A mid‑term revenue guidance released alongside the data did little to stem the sell‑off.
Despite the setback, the SMI’s other large‑cap components posted modest gains. Nestlé led the index with a 2.0% rise, followed by Roche up 0.8% and Givaudan gaining 0.7%. Sandoz, Novartis’ generic‑drug arm, jumped 4.3% after unveiling new growth targets for 2030, including more than CHF 2 billion in revenue and an adjusted EBITDA margin above 20%. Oerlikon added 0.8% after presenting its own mid‑term objectives, which UBS described as slightly positive. SFS and Bachem rose 1.3% and 1.6% respectively after receiving target‑price upgrades.
Pre‑market data from Julius Baer showed the SMI at –0.8%, with only Swiss Life (+0.4%) and Roche (+0.6%) in positive territory before the bell. Oerlikon and Sandoz were also up in early trading, at +1.8% and +1.4% respectively.
On the commodity side, copper prices on the London Metal Exchange surged to a record CHF 14,533 per tonne, a level that eclipses the previous early‑year high. The metal has appreciated more than 40% year‑on‑year and roughly three‑fold over the past decade. Analysts cited a supply squeeze—Chile’s output fell 9.4% YoY due to adverse weather, and Indonesia reported production challenges—combined with robust demand from electric‑vehicle production, power‑grid upgrades, data‑center expansion for artificial‑intelligence workloads, and the defence sector.
Oil markets were relatively steady. Brent crude settled at $97.10 a barrel, while U.S. West Texas Intermediate rose 1.1% to $92.51. Westpac noted that the U.S. Labor Day holiday reduced trading volumes, but geopolitical tension after a U.S.–Iran confrontation kept oil prices elevated and risk appetite subdued.
In Asia, Japan’s Nikkei 225 was flat at 66,445.13 points and the broader TOPIX slipped 0.6% to 4,102.05. The yen strengthened to ¥153.12 per dollar, its highest level since mid‑February, after speculation that the Bank of Japan will raise its policy rate to 1.25% in the coming week. Nomura’s equity strategist Maki Sawada warned that heightened BOJ expectations could dampen market activity. Real wages in Japan rose 2.4% YoY in July—the strongest gain since May 2021—and Q2 GDP growth outpaced earlier forecasts, fueling expectations of a tighter monetary stance.
Chinese markets showed modest gains, with Shanghai up 0.4% to 3,947.27 points and the combined Shanghai‑Shenzhen index rising 0.2% to 4,582.81. South Korea’s KOSPI surged 1.9% to 7,129.34, led by Samsung Electronics (+2.59%) and SK Hynix (+3.98%).
Currency movements reflected the yen’s rally: the dollar fell 0.8% against the yen, while trading at 6.7104 per yuan and 0.8091 per Swiss franc. The euro held near $1.1625, translating to 0.9405 franc.
Overall, the Swiss market opened on a cautious note, with Novartis’ clinical‑trial disappointments outweighing the positive earnings outlooks and growth announcements from other constituents.
