The Swiss Market Index is expected to open slightly higher on Wednesday, following Tuesday's 0.5% decline that closed the benchmark at 13,809 points. At Julius Bär, the SMI was forecast to rise 0.1% in pre-market trading, while IG Bank priced in a 0.3% gain.
Nineteen of 20 SMI constituents traded in the green ahead of the bell. Richemont was the notable exception, down 1.9% pre-market. The biggest gainers were AMR Osram at +2.2%, followed by Amrize and Logitech, each up 0.6%, and Partners Group at +0.5% after its recent losses.
Across Asian markets, traders showed caution ahead of the Federal Reserve's rate decision. The Nikkei 225 fell 0.1% in Tokyo and the Shanghai exchange lost 0.1%, while South Korea's benchmark rose 0.8%. Traders are pricing in a 92.4% probability of a 25-basis-point hike, according to the CME Group's FedWatch tool.
On currency markets, the dollar index hovered near a two-week high. The US dollar gained 0.1% against the yen to 155.29, strengthened slightly to 6.7106 per yuan, and rose to 0.8189 per Swiss franc. The euro held near 1.1540 dollars and moved to 0.9450 Swiss francs.
Oil prices retreated from Tuesday's near-3% jump. Brent crude fell 0.6% to $108.14 a barrel, while US WTI dropped 0.9% to $104.85. Merchants cited reports that crude loading at the Saudi export port of Yanbu on the Red Sea had been suspended.
In US markets, the Dow Jones Industrial Average closed 0.63% lower at 52,093.11, the S&P 500 fell 0.45% to 7,585.73, and the Nasdaq 100 dropped 0.65% to 28,938. The tech-heavy index had faced pressure early in the week over artificial intelligence security debates weighing on semiconductor stocks, but had recovered some ground.
Wednesday's Fed meeting marks the third session under new chair Kevin Warsh, who is expected to raise rates for the first time. More than 90% of market participants anticipate a 25-basis-point increase, though Warsh has signaled he will avoid clear guidance. Inflation remains driven largely by rising energy prices, with little prospect for a turnaround given Middle East tensions. The yield on ten-year US Treasuries climbed above 5%.
"The debate has shifted from whether the Fed will raise rates to how much tightening in this cycle will be required to restore price stability," said Seema Shah of Principal Asset Management, adding that a one-off hike was unlikely. Brock Weimer of Edward Jones countered that inflation has eased significantly from its 2022 peak and that any further tightening would likely be limited in scope and duration.
In the steel sector, Steel Dynamics rose 2% after China's steel association called on major producers to adopt stricter output curbs and cut inventories in a phase of "reduction and optimization."
Crypto equities came under pressure after the US Senate blocked a comprehensive regulatory bill. Coinbase shares fell around 10%, while Strategy, which holds bitcoin as its primary treasury reserve, dropped 5.4%.
