The Swiss stock market is currently experiencing losses as the SMI index drops below the critical 12,100-point threshold. This decline is attributed to investors taking profits ahead of the upcoming US presidential election. Additionally, concerns about the Federal Reserve's monetary policy direction have arisen due to a recent JOLTS report showing a significant drop in US job vacancies.
According to the JOLTS report, there was a decrease of 418,000 job vacancies in September, bringing the total to 7.443 million, the lowest level since January 2021. This decline suggests a cooling labor market and raises speculation about the Fed's next moves. Investors are now eagerly awaiting the release of US employment data and third-quarter growth figures, as these could further impact market sentiment.
On the Swiss stock exchange, the SMI index opened down 0.25% and continued to decline, reaching an all-time low of 12,026.80 points. Only six out of thirty stocks in the Swiss Leader Index managed to gain ground, indicating a prevailing bearish sentiment. Notably, Sandoz Group performed well, gaining 3.0%, while UBS saw its stock decline by 1.3% despite reporting impressive earnings.
In the broader European context, France's GDP rose by 0.4% between July and September, while Germany surprised analysts with a 0.2% GDP growth in the third quarter. These developments may influence investor sentiment across the region. On the Swiss exchange, Novartis gained 0.6%, but declines from major players like Roche and Nestlé offset this. Swatch Group led the losers with a 3.4% decline, followed by Straumann with a 2.8% drop. Sonova and Richemont also faced declines.
Georg Fischer saw a significant increase of 13.6% following the announcement of the sale of its Machining division. This news has positively impacted the company's stock performance.
As the Swiss stock market reacts to global economic signals, the interplay between local and international factors will continue to shape investor sentiment.