Swiss equities opened the week in the red. In pre‑market trading the Swiss Market Index (SMI) was down 1.2% at 14,221 points, with the broader SPI falling 1.1% to 19,982. The decline was anchored by a 4.2% slide in Novartis, which fell after the experimental cholesterol‑lowering drug Pelacarsen failed to demonstrate a reduction in heart‑attack and stroke risk. Analysts removed the drug’s revenue estimate of $1.3‑$2.0 billion from their models.
The disappointment spread to peers. Roche lost 1.5%, Lonza slipped 1.2% and Sandoz fell 0.9%. Med‑tech names Alcon, Sonova and Straumann each dropped between 1.3% and 1.5%. Schindler, the elevator and escalator maker, was the biggest loser in the broader market, down 3.1% to CHF 252.60 after Goldman Sachs cut its rating to "Sell" and lowered the price target to CHF 233.
Gainers were limited. Logistics group Kühne+Nagel rose 1.1% to lead the SMI, while ABB added 0.6% and VAT gained 1.1% on the back of strong demand for chips and AI‑related equipment in Asia. The construction‑materials supplier Arbonia surged 12.5% after UBS upgraded its rating and lifted the target price by 50%.
In the foreign‑exchange market the US dollar weakened against the yen, falling up to 1.4% to ¥154.07, its lowest level in seven months. The move follows a broader sell‑off in the dollar after a strong US jobs report on Friday revived expectations of higher Federal Reserve policy rates. The Bank of Japan kept its short‑term rate at 1% – a 31‑year high – and is set to decide on further moves on 18 September.
Swiss insurers also felt pressure. Swiss Re slipped 1.9% earlier in the session, warning that climate‑related losses from storms, droughts and wildfires are rising. The insurer later edged up 0.3% in the final minutes of trading.
The market backdrop includes a US holiday that kept the Dow Jones, S&P 500 and Nasdaq 100 closed; in after‑hours trading the Dow fell 0.52% and the S&P 500 dropped 0.17% while the Nasdaq 100 was unchanged.
Other notable developments: the Zürcher Kantonalbank (ZKB) said the recent leadership change at transformer maker R&S, which saw shares tumble 4.1%, could create a "clear new start" despite short‑term uncertainty. Burkhalter, a Swiss electrical‑installation firm, announced a 6.7% increase in employee remuneration after beating first‑half earnings expectations.
Overall, 19 of the 20 SMI constituents were in the red, underscoring the breadth of the sell‑off that was sparked by the Novartis setback and reinforced by concerns over higher global interest rates.
