The Swiss Market Index (SMI) erased early gains on Thursday, ending marginally higher as gains in Roche and Novartis offset losses across the broader market. The index rose 0.1% in thin trading, with 19 of 20 components advancing. Roche and Novartis, the two largest SMI constituents, each climbed 0.6%, extending gains from the prior session when the index had risen 0.46% on the back of the same names.
Logitech led declines among blue-chip stocks, falling 1.3% after JP Morgan downgraded its rating on the shares. The broker cited concerns over demand trends in its core peripherals business. Elsewhere, BCV, the canton of Vaud’s regional bank, dropped 3% following its half-year results, while Centiel, a newly listed industrial group, surged 18% on the same catalyst. UBS downgraded Aryzta to ‘Sell’ from ‘Buy’, sending the food services group down 4.6%, while Huber+Suhner gained 2.6%.
The SMI’s modest advance followed a day of heightened volatility, triggered by a U.S. Treasury announcement that it would double purchases of long-dated bonds. The move pushed yields on 30-year U.S. Treasuries sharply lower, easing pressure on risk assets after a recent surge in borrowing costs. The 30-year yield had earlier climbed to its highest level since 2007, driven by renewed inflation concerns, geopolitical risks tied to the Iran conflict, rising global debt levels, and capital demands from major AI firms.
Oil prices remained elevated, with Brent crude up 0.3% at $91.87 per barrel, supported by shipping disruptions in the Strait of Hormuz amid the Iran conflict. WTI crude held steady at $85.84. Gold, however, edged lower to $4,492.56 per troy ounce as falling yields reduced its appeal.
The U.S. dollar weakened against the Swiss franc and euro after the Treasury’s bond-buying plan reduced demand for dollar assets. The USD/CHF pair traded at 0.8003, up from Wednesday’s low of 0.7969, while EUR/USD held at 1.1672. The euro slipped to 0.9341 francs from 0.94 earlier in the week.
Bitcoin approached $70,000 for the first time since early June, rising to an intraday high of $69,994. The cryptocurrency has gained more than 11% over the past week, with analysts citing regulatory clarity hopes and a more accommodative U.S. Treasury yield environment as key drivers. U.S. President Donald Trump urged Congress to pass legislation providing clearer definitions for the growing crypto sector.
Asian equities showed signs of stabilization, with Japan’s Nikkei 225 up 1.2% and China’s Shanghai Composite gaining 0.2%. The relief in global markets followed the U.S. intervention, though some investors remained cautious. ‘The more the U.S. Treasury intervenes, the more institutional selling it may trigger,’ said Cusson Leung, chief investment officer at KGI Securities.
