The Swiss Market Index (SMI) was forecast to open 0.16% higher on Tuesday as investors adopted a cautious stance, with mixed performance across large and mid-cap stocks.
ABB shares advanced, while Arbonia tumbled 9.8% after reporting results, and Cham SP fell 3.3%. Gains were seen in BCGE (+3.4%) and Leonteq (+2.3%) following board renewal announcements. In the SMIM segment, Ems rose 1.1% while DKSH dropped 1.4% after Berenberg downgraded its rating to Hold from Buy with a price target of 68 francs.
Several Swiss equities received rating and price target adjustments. Vontobel maintained a Hold rating on Allreal with a price target of 213 francs. DA Davidson initiated coverage of Amrize with a Hold rating and a 40.11-franc target. Berenberg raised Emmi’s price target to 950 francs from 900 francs while keeping a Buy rating. UBS lowered EFG International’s target to 17.20 francs from 20.70 francs, maintaining a Neutral rating. Vontobel cut Siegfried’s target to 100 francs from 105 francs, while UBS increased Sika’s target to 230 francs from 220 francs, both retaining Buy ratings. Kepler Cheuvreux lifted Swiss Life’s target to 940 francs from 870 francs with a Hold rating, and Barclays downgraded Swiss Prime Site to Equal Weight from Overweight with a target reduction to 125 francs from 160 francs.
Global equity sentiment remained fragile as U.S. and Canadian trade tensions and the prospect of expanded U.S. sanctions against Iran weighed on markets. The S&P 500 and Nasdaq closed lower on Monday, pressured by technology shares, while the DAX was set to open higher based on index futures. In Asia, the Nikkei declined 0.5% to 65,197.7 points as chip stocks followed losses in U.S. peers ahead of Nvidia’s earnings release. The broader Topix edged up 0.06% to 4,075.83 points. The shipping sector rose 2.91%, the top performer among Tokyo Stock Exchange industry sub-indexes, as Middle East tensions supported value plays.
In currency markets, the dollar advanced 0.15% against the Swiss franc to 0.8037, while the euro gained 0.1% to 0.9369 francs. Brent crude oil held above $93 per barrel at $93.67, up 0.53%, as a tanker was struck in the Strait of Hormuz, disrupting shipping lanes critical to global oil and gas flows. The attack, reported by the UK Marine Trade Operations, damaged a vessel’s engine room and left it adrift 17 kilometers northeast of Oman. Iran continues to threaten and disrupt transit through the strait, demanding ships use a Tehran-prescribed route.
U.S. technology stocks extended losses for a seventh straight session, pressured by concerns over Nvidia’s upcoming results and rising costs in AI chip production. Samsung Electronics fell 3.5% after slumping 8.7% the prior day, following disappointment over its $79 billion shareholder return plan. Tokyo Electron and Advantest also declined, while Kioxia dropped 1.37%.
