Switzerland's Swiss Market Index reversed an early gain on Thursday to trade 0.2% lower at 13,849.33 points, erasing its pre-market surge to near the level of mid-June. The benchmark has shed nearly 600 points this week, wiping out gains accrued over the prior three months.
Novartis led the SMI higher by 1.2%, confirming a tentative bottom after two sharp declines earlier in the week triggered by clinical trial setbacks. Alcon remained the index's worst performer, falling 2.4%, followed by UBS at -1.3% and Roche at -1.1%.
Broader equity activity was influenced by disappointing figures from Primark's parent AB Foods. The British conglomerate's shares plunged up to 10.5% in London, their steepest decline in eight months, after preliminary calculations showed Primark revenues contracted 3% in the quarter ending over the weekend. Continental Europe dragged, down 4.3%, while food-business revenues grew in the "mid-single-digit percentage range." Sugár operations continued to suffer from falling selling prices.
Geopolitical tensions dominated commodities. Brent crude held at $101.03 a barrel, barely off its day-high, remaining above the psychologically significant $100 mark. US WTI crude gained 0.2% to $96.22. The price support followed reports of further explosions near the Strait of Hormuz, amid an escalation that includes Saudi–Houthi fighting in Yemen. The fear of supply disruption kept energy costs elevated and rekindled inflation concerns across global markets.
In Asia, all eyes turned toward the European Central Bank's policy decision due later Thursday, widely expected to deliver a 0.25 percentage-point rate increase, with investors focused on guidance regarding the future rate path. The Dow Jones Industrial dropped 0.77% to 52,380.66 — its lowest level since late July — while the S&P 500 fell roughly half a percent to 7,636.36, as elevated oil prices sustained inflation and rate anxieties among US investors. Overnight, both indices had pared some of their European-session losses, offering a marginally positive setup.
Japanese equities weakened under the pressure of rising oil prices and expectations of faster BoJ tightening. The Nikkei 225 gave back 0.8% to 64,597.46, the wider Topix slipped 0.3% to 4,032.89, and Nintendo fell 5.8%. In China, the Shanghai composite lost 0.1% to 3,946.28, and the CSI 300 fell 0.2% to 4,564.87. UBS drew attention for announcing it would close its Shenzhen fund-distribution unit — established in 2022 — by late September, citing an intensely competitive market.
On the currency front, the dollar strengthened to 153.51 yen and 6.7080 yuan, while weakening 0.1% to 0.8090 Swiss francs. The euro traded flat at 1.1636 dollars and 0.9414 francs ahead of the ECB decision. The yen found modest support from expectations of a BoJ rate hike next week.
Among individual Swiss stocks, analyst activity provided some support. Adecco rose 2.2%, Bachem gained 2.6%, and Galderma advanced 1.0% following positive commentary. Roche received accelerated review from the US FDA for Enspryng, a treatment for the rare autoimmune disease MOGAD. Burkhalter noted Berenberg cut its Adecco rating to Hold with a 135-franc target (down from 145). Pre-market snapshots from Julius Bär placed the SMI 0.2% higher at 13,830, with Alcon down 1.3% and ABB up 0.7%, while IG Bank had the index 0.1% lower. The SMI closed Wednesday at a sharp 1.8% decline.
