Swiss Market Index rises as UBS gains amid Fed rate hike, Helvetia Baloise outperforms

The Swiss market opened positively on Thursday, with the Swiss Market Index (SMI) rising 0.29% to 13,909.01 points. The broader Swiss Performance Index (SPI) advanced 0.41%, while the mid-cap index SMIM climbed 1.00%. UBS led gains, climbing 0.8% after the Ständerat approved stricter capital requirements for systemically important banks with foreign exposures, marking a partial victory for the bank amid ongoing regulatory scrutiny. The decision to defer further debate to the Federal Council eased immediate concerns, though the bank’s shares remained flat at 0.2% pre-market gains. Meanwhile, the Federal Reserve’s 25-basis-point rate hike—expected but delivered—calmed markets, with US futures rebounding after the Fed’s hawkish stance. Oil prices also eased slightly, dropping 1% for Brent crude to $104.21 and WTI to $101.07 per barrel, as Saudi Arabia announced expanded export routes to Oman, reducing supply concerns and inflationary pressures. A potential resolution to Iran tensions, suggested by U.S. President Donald Trump, further supported the market. Outside Switzerland, the Dow Jones Industrial Average fell 1.21% to 51,461.90, while the S&P 500 declined 0.45%, though the Nasdaq 100 held steady, reflecting resilience in tech stocks. Asian markets showed mixed results: the Nikkei 225 remained flat, while Shanghai’s CSI 300 fell 0.3%. The dollar strengthened, reaching a seven-week high, as short-term U.S. Treasury yields rose. Gold prices rose 1% to $4,305 per ounce, contrasting with the broader commodities downturn. The SMI’s gains were underpinned by strong earnings reports: Helvetia Baloise’s half-year results exceeded expectations, driving a 3.6% rise in its shares, while Swissquote surged over 1%. However, Roche fell 0.7% after pre-market gains failed to hold, and mid-cap Rieter dropped 12% following a UBS downgrade from hold to sell with a $2.00 target. Other underperformers included Ypsomed (-1.7%) and Amrize (-0.3%), while ABB (+1.0%), Lonza (+0.9%), and Logitech (+0.8%) benefited from broader market momentum. The week’s agenda included earnings from Helvetia Baloise, MCH, and Aevis, alongside economic data on Swiss trade, watch exports, and the Federal Office of Economic Affairs’ (SECO) autumn forecasts. The Ständerat also deliberated on the UBS capital rules, which could reshape Swiss banking regulations. The Fed’s hawkish stance and oil market stabilization dominated discussions, though regulatory risks and earnings volatility remained key drivers.