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Zurich stock market: the SMI just below 11,200 points, relieved by US inflation


Zurich (awp) – The Swiss stock market moved sideways on Thursday as midday approached, digesting, like its European counterparts, the slowdown in July of the rise in prices in the United States. After crossing the symbolic bar of 11,200 points in the first exchanges, the SMI of star stocks was unable to consolidate its gains.

The consumer price index in the United States contracted to 8.5% in July on one, after 9.1% in June, mainly due to lower fuel costs.

These data “added to the hope maintained by the markets that the American central bank (Fed) does not need to continue with as much aggressiveness the hike in its key rates”, observes Michael Hewson, of CMC Markets. The institution has been raising rates since March. In July, it had increased them by 75 basis points.

“The session could have been better if Minneapolis Fed Chairman Neel Kashari hadn’t said the Fed is a long way from declaring victory on inflation” and yesterday’s data didn’t change his stance aggressive in terms of raising rates, says John Plassard of Mirabaud Banque.

The Fed “will probably want to see further evidence not only of a slowdown in inflation, but also that it is halving from its current level,” added his colleague from CMC Markets.

At 11:05 a.m., the Swiss Market Index (SMI) gained 0.15% to 11,172.03 points, the Swiss Leader Index (SLI) 0.31% to 1,748.87 points and the broader market index Swiss performance Index ( SPI) 0.16% to 14,483.79 points. Of the 30 star stocks, 19 gained ground, 10 lost ground and ABB played the balancing act.

The electrotechnical conglomerate announced in the morning that it had resumed activities with the German Siemens in the field of low-voltage Nema motors for an undisclosed amount. The acquired activities employ 600 people and generated revenue of $63 million in 2021.

Temenos (+2.8%) continued its race in the lead, without any particular news, ahead of Zurich Insurance (+2.0%) and Sika (+1.4%).

The insurer reported higher results in the first half. Management has confirmed that it is exceeding its medium-term ambitions, which are due to expire at the end of the year, and announced a share buyback program of 1.8 billion Swiss francs.

The building chemist saw his target price planed by Berenberg, who however confirms his recommendation to buy the stock. The analyst highlights the delay announced the day before in the acquisition of MBCC.

The heavyweights evolved in dispersed order, Nestlé offering itself 0.4%, while Novartis disputed the red lantern at VAT (-0.7% each), and Roche (-0.4%) had slipped into the red . The latter has obtained an extension of approval for the Ventana cancer screening scanner from the United States Medicines Agency (FDA).

The evening before, the American stock exchange supervisory authority SEC announced that Harris Associates, a major shareholder of Credit Suisse (+0.4%), had doubled its stake to more than 10% in the bank with two veils. .

A slew of companies in the broader market lifted the lid on their mid-term performance. This was the case for the industrial groups Metall Zug (+2.1%), Phoenix Mecano (+1.1%), Cicor and Schlatter (untreated), the meat products processor Bell (+0.2%), the telecommunications specialist Ascom (+2.1%), as well as the Cantonal Bank of Basel (+1.0%).

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