The Swiss Market Index (SMI) rose 0.12% on Thursday, supported by gains in Roche and a stabilization in oil prices, while Richemont declined 2.4% as the broader luxury goods sector weakened.
Roche advanced 0.8% after securing an exclusive licensing agreement with China’s Simcere Pharmaceutical to co-develop a trispecific antibody, SIM0660. The deal follows Roche’s Tuesday rally on positive trial data. Givaudan climbed 1.5% following a Deutsche Bank upgrade following its investor day, while Logitech gained 2.6% in a multi-day recovery. Partners Group and Amrize also rebounded, up 2.0% and 1.2% respectively, after recent declines. Partners Group received analyst commentary following its recent earnings report.
At the opposite end of the index, Richemont fell 2.4%, weighed by broader European luxury sector weakness that also dragged Swatch down 2.3%. Nestlé declined 0.8%, while Novartis held steady after Tuesday’s gains from positive study results. Sika and Holcim saw limited market reaction to corporate developments, with Sika completing the acquisition of Turkish adhesives maker Akkim and Holcim inaugurating a new calcined clay production line in the Czech Republic.
The Swiss franc strengthened to 0.9384 per euro by midday, down from 0.9410 in the morning, after Switzerland’s August inflation data exceeded expectations. Year-on-year inflation rose to 0.8%, up from 0.4% in July and surpassing economist forecasts of 0.5-0.6%. The Swiss franc also gained 0.8% against the dollar, reaching 0.8092.
Oil prices eased slightly, with Brent crude for November delivery at $94.26 per barrel, down 1.5% from Wednesday’s close. The decline followed a five-day surge of over 5% amid renewed geopolitical tensions in the Middle East, though prices remained below the $97 intraday peak reached on Wednesday.
U.S. equity futures pointed to a softer open, with Dow Jones futures little changed and Nasdaq futures down 0.2%. The SMI’s modest gain contrasted with the broader European market, where equities showed tentative stabilization amid stable oil prices despite ongoing Middle East tensions. Analysts noted that much of the expected Fed tightening may already be priced in, with stable oil prices potentially supporting risk appetite.
Attention in Switzerland turned to August’s consumer price index and second-quarter GDP data, followed by Eurozone and U.S. purchasing managers’ indices. U.S. initial jobless claims and a speech by Federal Reserve Governor Christopher Waller were also in focus ahead of Friday’s nonfarm payrolls report. FedWatch data from CME Group indicated a two-thirds probability of a 25-basis-point rate hike at the upcoming meeting, up from 37% a week prior, though remarks from New York Fed President John Williams had tempered expectations.
