The Swiss benchmark SMI index is anticipated to open higher on Monday, with the addition of pharmaceutical firms Galderma and Sandoz—both making their SMI debuts—potentially driving gains. The firms replace Kühne+Nagel and Swisscom, which concluded their preliminary listing period last Friday. Galderma and Sandoz’s inclusion follows a broader trend of increased demand for pharmaceutical and biotech stocks globally, as investors weigh the potential for sustained earnings growth and innovation in the sector.
In Asia, equities showed mixed performance, with Asian markets generally trending upward despite a lack of trading activity in Japan due to a public holiday. The Shanghai Composite Index rose 0.5% to 3,932.42 points, while the combined Shanghai and Shenzhen index climbed 0.4% to 4,523.87 points. Meanwhile, Nikkei Futures surged 0.5% despite the Nikkei 225 index being closed for the holiday.
Oil prices declined further amid reports suggesting increased supply from the Middle East, despite ongoing geopolitical tensions. Admiral Brad Cooper, commander of the U.S. Central Command, noted that oil, freight, and liquefied natural gas volumes had reached their highest levels in six months. Vivek Dhar, a commodities analyst at CBA, highlighted that pipeline disruptions had altered market dynamics, with global oil and refining inventories expected to deplete within five to ten weeks—down from earlier projections of 15 to 20 weeks. Brent crude fell 2.1% to $101.72 per barrel, while WTI crude dropped 2.2% to $98.10 per barrel.
On the bond market, rising expectations of further U.S. Federal Reserve rate hikes—with a strong likelihood of another increase in October and beyond—created market tension. Analysts at Bank of America maintained their forecast of only two additional rate hikes in October and December, citing that Fed tightening cycles tend to be concentrated at the start. The dollar saw slight gains against the yen (156.79) and Chinese yuan (6.6956), while the euro remained relatively stable against both currencies.
Gold prices stagnated as rising yields dampened demand, while the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping on Thursday could add volatility to global markets. Meanwhile, U.S. equities outperformed European markets, with the Nasdaq 100 rising 0.9% over the week, driven by strong demand for semiconductor stocks. Halbleiterunternehmen like Sandisk, Lam Research, and Seagate Technology saw gains of up to 11%, supported by Nvidia’s forecast of a doubling of chip demand in 2024. Crypto-related stocks, including Strategy and Coinbase, surged further, benefiting from extended SEC trading exemptions for tokenized securities.
In contrast, Netflix experienced a 4.7% decline, reflecting concerns over its content strategy and potential competition with YouTube. Meanwhile, steel producers Nucor and Steel Dynamics faced losses of 6.3% and 4.1%, respectively, as they missed their third-quarter earnings targets.
The Dow Jones Industrial Average closed down 0.18% at 51,682.64 points, with the S&P 500 rising 0.17% to 7,650.50 points, while the Nasdaq 100 led gains with a 0.9% increase to 29,644.17 points, underscoring the sectoral dominance of technology stocks.
