The Swiss stock exchange had a challenging week, with the leading value index, SMI, closing at 11,384.92 points, a decrease of 0.26 percent from the previous day. This decline brings the index back to levels last seen in May and erases much of the progress made throughout the year.
Over the past week, the SMI has experienced a cumulative loss of 3%, with year-to-date performance at +2%. Investor sentiment remains uncertain due to the Federal Reserve's recent policy adjustments, slower interest rate cuts, and concerns over a potential U.S. government shutdown.
Today's trading session was volatile due to the expiration of derivatives, leading to increased trading activity and significant price swings. Financial institutions, including UBS and Partners Group, faced declines, as did insurance companies like Swiss Life, Swiss Re, and Zurich. The performance of cyclically sensitive stocks was mixed, with some companies showing resilience while others struggled. Roche provided some support to the index, but defensive heavyweights like Novartis and Nestlé fell. Idorsia and Ypsomed experienced significant declines, reflecting the challenges facing the Swiss market.
The interplay between global economic trends, monetary policy, inflation data, and corporate performance will be critical in determining the direction of the Swiss stock exchange in the coming weeks.