The Swiss stock market is closing lower on Friday after a generally positive week. Gold prices have increased by 1.4% to $4,399 per ounce, following a 1.9% gain on Thursday. Goldman Sachs predicts the gold price will reach $5,400 by the end of 2027. Experts believe that a more restrictive monetary policy will likely slow the gold rally but not halt it. Higher interest rates may dampen gold demand as they increase the attractiveness of yield-bearing assets.
The SMI lost 0.2% during the morning session. ABB (+1.4%), Logitech (+1.2%), and Roche (+0.8%) led the SMI on Friday morning. Swisscom (-2.8%) had the largest losses, as its shares will be traded in the SMI for the last time before being replaced by Galderma (+1.3%) and Sandoz (+1.3%) next week.
Nestlé shares fell by 1.8% after the company announced that its Russia business is under temporary administrative control. The shares are down 1.2%. Analysts estimate that Russia contributes about 1% to Nestlé's total revenue. ABB (+1.2%), Roche (+0.7%), and Alcon (+0.7%) led the blue chip gains.
Amrize started the day 1.1% lower. Jefferies lowered the target price for the construction materials company to 30.60 Swiss francs, which is slightly below the last traded price of 31.82 Swiss francs. Kühne+Nagel (+0.2%) and Swisscom (-1.9%) will be replaced in the SMI by Galderma (+0.2%) and Sandoz (+1.1%) next Monday.
Sandoz gained 1.1% after receiving Canadian market approval for a generic version of the diabetes drug Semaglutid and announcing a partnership for an Emicizumab biosimilar, the first drug for hemophilia in the pipeline. Leonteq gained 2.9% as its major shareholder, Rainer-Marc Frey, increased his stake to nearly 30% by acquiring the remaining shares from Raiffeisen.
The oil price continued to decline for the third consecutive day, falling 1% to $103.73 per barrel for Brent crude. The Swiss Market Index (SMI) is trading 0.4% lower pre-market, with all blue chips in the red. Amrize is the worst performer, down 0.7% pre-market.
The broader Swiss Market Index (SMIM) is trading 0.1% higher pre-market. Sandoz gained 3.0% after announcing a partnership with mAbxience for a Roche biosimilar and receiving Canadian approval for a diabetes drug. Leonteq is also expected to gain 3.9% as Rainer-Marc Frey acquires the remaining Raiffeisen shares.
Asian stock markets gained as technology values recovered and oil prices declined. The Nikkei 225 index in Tokyo gained 0.8% to 64,662.11 points, while the broader Topix index gained 0.4% to 4,076.38 points. The Shanghai Composite index gained 0.8% to 3,904.76 points, and the Shanghai-Shenzhen CSI 300 index gained 0.6% to 4,485.29 points.
The Bank of Japan raised its policy rate to a 31-year high of 1.25% to combat inflation. The dollar gained 0.1% to 156.16 yen and 0.1% to 6.6983 yuan, while the euro remained almost unchanged at $1.1479 and gained slightly to 0.9466 Swiss francs. Brent crude oil fell 0.8% to $103.94 per barrel, while US crude oil (WTI) fell 0.7% to $101.15 per barrel.
The US stock market gained as falling oil prices and robust labor market data boosted sentiment. The Dow Jones Industrial Average gained 0.6% to 51,778 points, while the S&P 500 gained 1.1% to 7,638 points and the Nasdaq Composite gained 1.7% to 26,418 points. The US Federal Reserve raised interest rates for the first time in over three years on Wednesday.
The European Central Bank is expected to raise interest rates by 50 basis points on Thursday, while the Bank of England is also expected to raise rates. The Bank of Japan is expected to keep its policy rate unchanged but may signal a slower pace of future rate hikes. The Swiss National Bank is expected to keep its policy rate unchanged but may adjust its forward guidance.
The US stock market is expected to open lower on Monday as traders digest the Fed's rate hike and prepare for the European Central Bank's rate decision. The S&P 500 is expected to open 0.5% lower, while the Nasdaq Composite is expected to open 0.8% lower. The Dow Jones Industrial Average is expected to open 0.4% lower.
The SMI is expected to open 0.3% lower on Monday, with all blue chips in the red. Swisscom is expected to be the worst performer, down 1.5%, while Nestlé is expected to gain 0.5% as it reports its third-quarter earnings on Tuesday. Roche is expected to gain 0.8% as it reports its third-quarter earnings on Wednesday.
The broader Swiss Market Index (SMIM) is expected to open 0.2% higher on Monday, with Sandoz expected to gain 1.5% and Leonteq expected to gain 2.5%. The Swiss franc is expected to trade at 0.9500 against the euro and 1.0500 against the dollar on Monday.
