The Swiss Market Index (SMI) was set to open 0.12% to 0.16% higher on Thursday, with 19 of 20 components rising. Roche led gains with a 0.52% advance, while Logitech slipped 0.4%. Huber+Suhner climbed 2.6%.
Aryzta’s shares plummeted more than 6% after UBS downgraded its rating to sell from buy, citing concerns over the company’s financial position. The broader market sentiment was supported by a calmer FX backdrop following Wednesday’s volatility.
The USD/CHF pair traded at 0.8003, just above 80 centimes, after falling to a low of 0.7969 the prior evening. EUR/USD was at 1.1672, having briefly touched 1.16855 after trading below 1.16 earlier in the session. EUR/CHF stood at 0.9341, recovering from an overnight low of 0.9307.
The dollar’s decline followed the U.S. Treasury’s announcement to significantly increase purchases of long-dated bonds, reducing the appeal of U.S. debt and prompting a shift in capital flows. The yield on 30-year U.S. Treasuries, which had surged to its highest level since 2007 amid inflation concerns, inflation data, geopolitical tensions in the Middle East, rising U.S. debt levels, and heavy capital demands from major AI firms, fell in response. Japanese and German bond yields also declined.
Global equities reacted positively. Japan’s Nikkei 225 rose 1.2%, while Shanghai’s composite gained 0.2%. In the U.S., the Dow Jones Industrial Average added 0.22% to 53,463.05, the S&P 500 rose 0.21% to 7,707.98, and the Nasdaq 100 dipped 0.22% to 29,426.02.
Biotech stocks surged after Moderna and Merck & Co reported positive results from a melanoma vaccine study. Moderna’s shares jumped 177%, lifting its market capitalization by $44 billion to roughly $70 billion. Merck’s stock gained 12.6%, while BioNTech rose 22%. Gold miners Agnico Eagle and Barrick Mining advanced 11% and over 7%, respectively, as gold prices rose on falling U.S. yields.
Marvell Technology surged about 10% after announcing an expanded partnership with Alphabet, involving a stock option agreement allowing Alphabet to acquire up to $12.2 billion in Marvell shares. Alphabet closed marginally higher. The deal pressured rival chipmaker Broadcom, whose shares fell 4.6%. Apple and Amazon each gained more than 2%.
Estee Lauder shares jumped 16.3% after better-than-expected earnings, while Target rose 4.3% following an upgraded outlook.
