The Swiss equity market opened higher on Wednesday, with the benchmark SMI gaining 0.14% to 14,538 points as gains from the prior session extended. The broader SMIM index, however, showed a marginal decline of 0.1%, reflecting mixed performance across sectors.
Support for European equities came from U.S. markets, where major indices edged up following Tuesday’s close amid falling oil prices and lower bond yields. In Switzerland, several mid-cap companies reported first-half earnings, while investors awaited Nvidia’s quarterly results, where expectations remain exceptionally high. Whisper estimates suggest revenue may more than double, raising the risk of disappointment even amid strong results.
Among blue-chips, Amrize fell 1.9% after hitting an all-time low on Tuesday but attempted a rebound, while UBS rose 0.9%. Pressure persisted on Kühne+Nagel (-1.1%), Lonza (-0.8%) and Alcon (-0.5%). In the SMIM, SoftwareOne surged 8.6% after beating revenue and profitability expectations, while Stadler Rail gained 4.9% on stronger-than-expected sales, order intake and EBIT, though earnings fell short of estimates.
DocMorris shares slid 3.9% on a Jefferies downgrade from Buy to Hold despite an upwardly revised price target, while Redcare received a Buy rating with a higher target. Separately, UBS lifted its rating on Kardex to Neutral with a CHF 350 price target, up from CHF 346, while Oddo BHF downgraded Tecan to Neutral from Outperform with a CHF 192 target.
The Swiss franc traded sideways against the euro at 0.9370 and weakened slightly versus the dollar to 0.8033, down from 0.8020 the prior evening. The euro held steady at 1.1664 against the dollar. Market focus later in the session turned to the U.S. PCE price index for July, the Fed’s preferred inflation gauge, amid growing uncertainty over U.S. rate policy. A September hike is currently priced at roughly 40% probability.
ECB President Schnabel said in a Bloomberg interview that rates would need to rise further due to inflation, though the euro showed little immediate reaction. Oil prices extended declines, with Brent crude falling 2.5% to $86.35 per barrel and WTI dropping 2.4% to $80.39, as Iran signaled renewed talks on reopening the Strait of Hormuz, easing supply concerns. Asian equities were mixed, with the Nikkei up 0.6% and Shanghai gaining 0.9%, while the dollar lost ground against the yen and yuan.
Gold prices eased 0.3% to $4,642.74 per ounce after reaching a three-month high on Tuesday, as investors awaited the U.S. inflation data for clues on future Fed policy. U.S. gold futures rose 0.1% to $4,700.70.
European futures pointed to a modestly higher open, with the Stoxx 600 up 0.12%, though the Dax was expected to decline 0.1%. In Switzerland, the SMI was indicated 0.2% higher at 14,555 points by Julius Bär, with Amrize, Kühne+Nagel and Logitech among the top gainers. Losses were led by Cosmo (-2.2%) and DocMorris (-3.9%).
