Market activity on the SIX exchange has slowed this week, with trading limited to Monday and a pause until Friday. Traders have noticed a lack of rebalancing trades and portfolio adjustments that typically generate turnover in the secondary market. Many market participants are taking advantage of the holiday season, choosing to focus on the new year rather than active trading.
German import prices for November increased by 0.6%, higher than expected. This follows a decline of 0.8% in the previous month. Traders do not expect upcoming consumer confidence and real estate market figures from the United States to stimulate business activity ahead of the holidays.
On the foreign exchange front, trading has been subdued, with many market participants absent due to public holidays. The euro/franc pair saw slight gains, while the dollar/franc pair remained stable. The European single currency has strengthened against the US dollar. However, significant price movements are not anticipated in the currency market, especially with no major economic data expected from the US post-holidays.
In Japan, inflation in the greater Tokyo area has shown signs of acceleration, with consumer prices rising by 2.4% year-on-year in December. This trend is attributed to increasing energy prices and is viewed as indicative of the overall price trajectory in the country. The Japanese yen has regained some ground, although price movements remained limited. Bitcoin has stabilized after experiencing volatility, trading at USD 96,730. The market appears to lack clear direction as it heads into the new year, with traders remaining cautious amid the holiday season.
The Swiss stock market demonstrated resilience on Friday, recovering from a slow start and trending upward as the day progressed. Despite limited turnover on the second-last trading day of the year, traders noted a buildup of demand. Individual investors are likely positioning themselves for the upcoming year by purchasing shares that have underperformed in 2024. The FuW Swiss 50 Index rose, while the SMI, SLI, and SPI also saw gains, reflecting a positive sentiment among investors. Stocks such as Kühne + Nagel and Adecco, which had struggled throughout 2024, are experiencing renewed interest. Traders speculate that this could be a strategic move by investors anticipating an economic revival in 2025.
Among the blue-chip stocks, Kühne + Nagel and Adecco have emerged as favorites, with gains. Both companies have faced significant declines in value over the past year. Market observers suggest that this uptick may be a preemptive positioning for the new year, as investors bet on a recovery in trade and labor markets. UBS and Julius Baer also saw positive movements. Part of this price gain is attributed to developments involving the Royal Bank of Canada. As the year draws to a close, the overall sentiment among traders remains cautious yet hopeful, with many looking ahead to potential opportunities in 2025.