The Swiss stock market is set to open higher on Friday, with the Swiss Market Index trading 0.4% ahead pre-market according to IG Bank, buoyed by positive signals from overseas and a wave of analyst rating changes on domestic names.
UBS upgraded Glencore to Buy from Hold, setting a 650-pence price target. Citigroup raised its Givaudan target to 3,450 Swiss francs from 3,150, maintaining a Neutral rating. Vontobel trimmed its Amrize target to 46 francs from 50 but kept a Buy rating. Bank of America lifted its Barry Callebaut target to 1,030 francs from 1,020, staying at Underweight. Research Partners downgraded Stadler Rail to Hold from Buy while raising its target to 35 francs from 30.60. Oddo increased its Temenos target to 73 francs from 68, keeping Neutral. Octavian cut its Newron target to 15 francs from 17 and lowered its Ypsomed target to 370 francs from 380, both maintaining Hold ratings.
On the currency front, the Swiss franc weakened further following the SNB's rate decision, which left the key interest rate unchanged at zero percent as expected. The euro rose to 0.9430 francs in early trading from 0.9420 the previous evening. Against the dollar, the franc traded at 0.8292, slightly lower than Thursday's 0.8282.
The German DAX was also expected to open higher, recovering from a 0.6% decline on Thursday that closed at 25,266.53 points. Investor concern over geopolitics and the future direction of central bank policy weighed on European equities.
In corporate news, meal-kit provider HelloFresh cut its annual forecasts on disappointment over weak demand. Revenue is now expected to contract 9-11%, down from a projected 3-6% decline, and operating profit is forecast at 350-370 million euros, below the prior 375-425 million estimate. The company's shares fell nearly 7% in Tradegate after-hours trading.
In US after-hours trading, MGM Resorts dropped 8.6% on reports that Barry Diller's takeover offer had been withdrawn, a setback for a stock that had benefited from acquisition speculation. The Vaneck Space ETF gained 4.5%, standing out in otherwise quiet after-hours action.
Asian markets showed resilience despite a global sell-off in bonds. Japan's Nikkei 225 rose 1.2% to 66,318.14 and the broader Topix gained 1.2% to 4,123.73, though trading volume was light as many regional exchanges were closed for holidays. Shanghai's main indices did not trade.
Rising government bond yields dominated sentiment, with Japan's 10-year yield reaching its highest level since 1996. Nigel Green of the deVere Group warned that ignoring the bond market rally could prove costly, noting that once risk-free US rates exceed 5%, every asset would need to justify its valuation.
Oil prices retreated following a volatile week as traders assessed the possibility of a ceasefire between the United States and Iran. Brent crude fell 0.7% to $105.81 a barrel, while WTI dropped 1.6% to $93.07. Tim Waterer, chief analyst at KCM Trade, noted the wide spread between the two benchmarks reflected divergent regional risk profiles.
US equity indices were essentially unchanged on Thursday: the Dow Jones fell 0.31% to 51,349.98, the S&P 500 declined 0.02% to 7,704.13, and the Nasdaq 100 rose 0.03% to 30,478.85. Meta climbed 4.5% to $777.59, extending its recent rally.
