The Swiss Market Index is guided 0.5% higher by IG Bank at the opening, as overnight US futures on the S&P 500 and Nasdaq climbed 0.7%, erasing losses following the Federal Reserve's rate decision.
The Swiss earnings season is drawing to a close. Helvetia, Baloise, MCH and Aevis are set to publish half-year results on Thursday. The economic calendar remains densely packed: August foreign-trade and watch-export figures are due, the Seco will release its autumn economic forecasts and Raiffeisen its 2026 pension barometer. Meanwhile, the Ständerat is debating banking legislation concerning UBS.
The Fed's first rate increase in more than three years lifted Asian markets on Thursday as investors bet the central bank can rein in inflation. Bond yields on longer-dated US treasuries eased, and the dollar reached a seven-week high on higher short-term yields. The Nikkei 225 was little changed at 63,966.87; Shanghai fell 0.3%.
In forex, the dollar rose fractionally to 156.22 yen and 6.7088 yuan, and strengthened to 0.8256 Swiss francs. The euro held near 1.1458 dollars and 0.9460 francs.
On commodities, Brent crude fell 0.2% to $105.60 a barrel; WTI slipped 0.2% to $102.19. Gold rose 1% to $4,305 an ounce.
US equity indices were pressured on Wednesday by the rate hike and the sharp decline in oil prices that had previously supported them. The Dow Jones Industrial averaged fell 1.21% to 51,461.90, the broad S&P 500 closed 0.45% lower at 7,551.81, and the technology-heavy Nasdaq 100 edged up 0.02% to 28,945.06.
The Fed raised its policy rate by 25 basis points to a target range of 3.75–4.00%, as widely expected. Thomas Altmann of QC Partners called the unanimous vote notable, saying it sent a clear signal of resolve toward the White House.
Stephen Brown of Capital Economics highlighted comments by Fed Chair Kevin Warsh pointing to a further hike before year-end. Brown said he still expects a third increase early next year.
Artificial intelligence remained a dominant theme on US exchanges. After early-week warnings from the industry about rapid KI development and safety concerns, sentiment has stabilized. Citigroup analysts noted that security considerations are likely to increase — not reduce — demand for computing power, keeping semiconductor names in favor.
Intel gained 4%, buoyed by reports that SK Hynix could partner with Intel on chip production in the US. SK Hynix said it is evaluating options to strengthen its global competitiveness. Marvell Technology rose 3.6%, AMD added 1.7% and Nvidia edged up 0.8%.
JB Hunt dropped 13.3% after the logistics company flagged rising costs and issued a rare profit warning at a Morgan Stanley conference.
Boeing fell 3.7% on delays to test flights of the 777X, marking a low since late March. The stock is down 7% on the year, placing it near the bottom of the Dow.
(cash/AWP/Bloomberg/Reuters)
