Zurich (awp) – The Swiss stock market should start the week on the wrong foot, after the publication the day before the weekend of US economic data showing signs of overheating in the world’s largest economy.
“Investors are now expecting a rate hike of 50 basis points (bp) at Wednesday’s meeting (of the Fed, editor’s note) and of… 75 bp in June, which would be a first since 1994”, writes John Plassard of Mirabaud Banque on Monday in his morning commentary.
After experiencing a convincing rebound on Thursday, the main American indices literally collapsed before the weekend. The Nasdaq completed its worst month since October 2008, the S&P 500 its worst session since June 2020 and the Dow Jones lost nearly 1,000 points, notes the analyst.
Consumer prices in the United States continued to rise in March, rising 6.6% over one year and 0.9% over one month, according to the PCE inflation index, published Friday by the Department of Trade. This indicator, the most scrutinized by the American Federal Reserve (Fed) to gauge inflation, has reached its highest level since January 1982.
In Japan, sales of new vehicles fell again in April, continuing the negative spiral that began last September, which notably reflects disruptions in supply chains.
In the course of the morning, we expect in Switzerland the publication of the consumer sentiment index from the State Secretariat for the Economy (Seco) as well as the PMI index of purchasing managers for the month. of April.
At 8:20 a.m., the Swiss Market Index fell by 0.85% to 12,025.46 points in the pre-market market concocted by Julius Bär. All the components of the flagship index of the Zurich market point to the south.
Credit Suisse (-2.8%) held the red lantern, in the wake of the general assembly which ratified the election of the new president Axel Lehmann on Friday, while refusing discharge to its governing bodies for the 2020 financial year. In addition, an American pension fund has filed a complaint against current and former directors of the establishment in the context of the Archegos scandal.
Rival UBS (-1.4%) also underperformed the market.
Swiss Life’s asset management (-0.9%) should increase its contribution to the group’s results by 100 million Swiss francs, said in an interview published on Saturday in Finanz und Wirtschaft its chief investment officer (CIO) Stefan Mächler .
ABB (-1.8%) saw its price target reduced by Goldman Sachs, which reaffirmed its recommendation to buy the stock (buy), highlighting the order entries currently 40% above the level of the end of 2018 as well than the announced share buyback program.
The three heavyweights of the SMI Nestlé, Novartis and Roche (-0.7% each), did slightly better than the market.
In the wider market, security technology specialist Dormakaba (-1.8%) found a buyer for its Mesker hollow metal door business. The transaction will have a negative impact of 64 million Swiss francs on the group’s net profit.
Leclanché (no pre-market price) has indicated that the continuation of its activities is conditional on the completion of the sale of its subsidiary E-Mobility, negotiated since last fall with a listed investment vehicle (Spac) in the United States. . The Yverdon industrialist also reported a net loss for 2021 reduced to 65.0 (78.2) million Swiss francs.
Lindt & Sprüngli shares (BP -1.8%), as well as Hiag, Aevis, Feintool and the Banque cantonale du Jura (not referenced) will be treated excluding dividends on Monday.
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