Zurich (awp) – The Swiss stock market should try to continue its upward trend on Monday, driven by the solid performance of Wall Street at the end of last week. With the end of the half-year results season, investors will turn their attention to economic data and in particular inflation in the United States.
Friday evening, the New York Stock Exchange chained a third session of consecutive increase thanks to a renewed enthusiasm of the investors who ended up digesting the messages of the American central bank (Fed).
“European indices should open higher this morning on the heels of the close in New York on Friday evening, fueled by the weaker dollar and the hope that central banks are finally tackling the problem of inflation” , commented John Plassard of Mirabaud Banque.
For Ipek Ozkardeskaya of Swissquote, “the recent optimism of the markets could be explained by the hope of seeing a second month of slowing inflation in the United States”. Statistics on consumer prices (CPI) in August across the Atlantic must indeed be published on Tuesday.
Inflation is expected to fall to 8.1%, after 8.5% in July and 9.1% in June. “If the data is weak enough, or weaker than expected, equity markets may well continue to accelerate this week,” the analyst added in a commentary. If so, investors risk going into sell mode.
Around 8:10 a.m. on the Swiss Stock Exchange, the flagship SMI index rose 0.36% to 10,938.96 points, after closing Friday sharply up 1.02%, according to preliminary indications published by the bank Julius Bär.
All star stocks were expected to rise, with the best performance being posted by Swiss Re (+0.8%). The reinsurer expects geopolitical tensions, macro-economic developments and climate change to translate into increased demand for risk cover, leading to price increases.
The two pharmaceutical heavyweights Novartis and Roche (both +0.44%) also accelerated. Novartis on Saturday released study data showing relative success in a liver cancer research program with tislelizumab. The Basel giant has also invested approximately 100 million Swiss francs in the development of biotherapies on its Basel campus.
The third major Nestlé quotation advanced by 0.2%.
The two big banks UBS and Credit Suisse (both +0.4%) also rose.
Lonza (+0.2%) has appointed Daniel Palmacci as director of the Cell and Gene division from November 1 and a member of management.
In the broader market, Valora (+0.6%) stood out. Fomento Económico Mexicano (Femsa) holds 84.41% of the share capital and voting rights of the Basel group, according to the provisional announcement of the interim result of the takeover bid.
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