2024-01-12 10:31:09
Zurich (awp) – The Swiss stock market continued to advance on Friday as midday approached, but without yet compensating for the losses suffered the day before in the wake of American inflation, which was higher than expected. The annual results season will have its first big day across the Atlantic, with American banks being on the program this afternoon.
“The American data published (Thursday) combined exactly what investors feared: a solid report on employment and rising inflation. (…). However, these figures did not dampen hopes of a rate cut” among markets, says Jochen Stanzl, chief analyst at CMC Markets.
In China, deflation continued in December for the third consecutive month, in contrast to the main economies plagued by inflation. In France, inflation slowed in 2023, standing at 4.9% year-on-year.
The United Kingdom saw its GDP increase by 0.3% in November, barely more than expected by economists, after a similar decline the previous month.
Around 10:55 a.m., the Swiss Market Index (SMI) gained 0.58% to 11,218.70 points, the Swiss Leader Index (SLI) gained 0.59% to 1773.15 points and the Swiss Performance Index (SPI ) by 0.60% to 14,622.48 points. Among the thirty star stocks, only Partners Group (-2.9%), Lonza (-0.6%), Straumann (-0.3%) and Sandoz (-0.1%) lost weight.
Partners Group was drinking after the publication the previous evening of the state of its assets under management at the end of December. The private equity specialist suffered from a decline in customer demand, despite a 3.7% increase in its assets last year. In the wake of the publication of these figures, Goldman Sachs lowered its price target while Jefferies raised it.
After a start in the bright red, luxury stocks Swatch (stable) and Richemont (+0.7%) were smiling again. Jefferies, which predicts a difficult year for the sector, has revised downwards the respective price targets of the Bienne and Geneva groups. British competitor Burberry has cut its forecasts and is losing ground in London.
SGS (+2.5%) was still in the lead. The inspection and certification giant saw its recommendation raised to “equal weight” from “underweight” by Morgan Stanley. Kühne+Nagel and Geberit (+1.5% both) completed the top three without any particular news.
Holcim (+1.5%) made three acquisitions in Greece, Spain and the United Kingdom, companies presented as a reinforcement in the field of sustainability.
UBS (+0.9%) proposes the candidacy of Gail Kelly to the board of directors, replacing Dieter Wemmer who is not standing for re-election.
Novartis (+0.2%) would have abandoned the takeover project of the American biotech Cytokinetics, specialized in the treatment of heart diseases, according to an article in the Wall Street Journal published Thursday. The Rhineland multinational reportedly officially withdrew one or two days ago. Roche (carrier: +1.2%, good: +1.1%) was clearly doing better.
Nestlé (+0.1%) will invest $100 million to expand the production capacities of its coffee factory in Tri An, in the south of Vietnam.
On the broader market, AMS (+2.1%) benefited from an upward adjustment of the price target by Bernstein.
Swiss Steel (-1.8%) wanted to reassure the markets on Thursday evening regarding the financing of its restructuring program, after the publication of an article reporting difficulties. Operations are proceeding as planned and financing is guaranteed, underlined the Lucerne steelmaker.
Santhera soared 7.1%. The laboratory has obtained approval in the United Kingdom for the product Amagree (vamorolone) for the indication against Duchenne muscular dystrophy.
The ban on aluminum coffee pods will pose no problem for Aluflexpack (-0.2%), which said in a press release that it was satisfied with the evolution of the European process for regulating packaging waste.
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