US non-farm payrolls are expected to add 148,000 jobs in September, with the unemployment rate likely holding steady at 4.2%. Despite recent softer job data, a range of 120,000 to 180,000 job additions could indicate economic normalization rather than distress. The US dollar may stabilize, influenced by labor market resilience and geopolitical tensions, though caution remains due to high net-short positioning against G10 currencies.
IG
The Swiss stock market opened lower on Thursday, influenced by a slowdown in consumer price inflation, which rose by 0.8% year-on-year in September. The leading SMI index fell by 0.20%, with 25 of the 30 major stocks declining, while Sandoz, Novartis, and Givaudan were among the few gainers. Analysts anticipate a potential rate cut by the Swiss National Bank in December 2024 due to declining inflation forecasts.
Liechtensteinische Landesbank (LLB) demonstrates resilience in a challenging market, with its share price at EUR 76.00, reflecting a slight decline of 0.65% but a notable annual increase of 14.29%. The bank plans to distribute a dividend of EUR 2.70 per share for 2024, offering a dividend yield of 3.55%, appealing to income-focused investors. Recent analyses suggest shareholders may need to consider their next steps regarding buying or selling shares.
Inflation in Switzerland slowed to 0.8% year-on-year in September, down from 1.1% in August, driven by a significant drop in tariffs for imported goods. The consumer price index fell by 0.3% month-on-month, raising concerns about potential deflation as local product prices rose and housing rents continued to increase. The Swiss National Bank has lowered its key rate to 1% and indicated that further monetary easing may be necessary amid geopolitical tensions and a strong franc.
Berner Kantonalbank (BEKB) experienced a slight share price decline of 0.21%, closing at EUR 243.00 on October 3, 2024, yet remains 2.26% above its 52-week low. The bank's market capitalization stands at EUR 2.3 billion, with an attractive dividend yield of 4.12% expected for 2024, highlighting its shareholder-friendly approach. A recent analysis suggests shareholders may need to consider their options regarding buying or selling the stock.
Switzerland's inflation rate dropped to 0.8% in September, prompting expectations for further interest rate cuts by the Swiss National Bank (SNB). The decline in prices, influenced by cheaper package tours, airline tickets, and lower energy costs, suggests a potential key interest rate of 0% if disinflation continues. The strong Swiss franc remains a significant factor in the SNB's monetary policy decisions.
Campania's president, Vincenzo De Luca, and Guardia di Finanza commander, Alessandro Barbera, signed a three-year agreement to enhance transparency and efficiency in managing EU funds and the National Recovery and Resilience Plan. The collaboration aims to prevent fraud and ensure legality in public works, emphasizing the region's commitment to integrity and effective governance. De Luca highlighted the importance of this initiative in reshaping perceptions of the South, showcasing its potential for transparency and efficiency in public spending.
Investing in healthcare ETFs offers Canadian investors a way to diversify their portfolios, which are often underweight in this sector. Despite its volatility, the healthcare sector is expected to see growth driven by an aging population, technological advancements, and increased healthcare spending. Funds like the Hamilton Healthcare Yield Maximizer ETF and Harvest Healthcare Leaders Income ETF utilize covered call strategies to enhance yields, appealing to those seeking defensive investments with growth potential.
Undersecretary for Health Marcello Gemmato announced a significant budget increase for the National Health Fund, with an additional 4 billion allocated this year. He emphasized the need for more resources to address the aging population and highlighted Italy's public health system's strong global ranking. The G7 Health event in Ancona aims to foster international dialogue on health care improvements, particularly in the wake of COVID-19.
The U.S. government is extending the negotiation process for drug price cuts under Medicare, allowing more opportunities for pharmaceutical companies to submit counter offers. The Centers for Medicare and Medicaid Services (CMS) will select the most expensive medications for negotiation by February 1, with new prices effective in 2027. Changes include earlier meetings with drugmakers and additional negotiation sessions to foster dialogue and potentially improve counteroffers.
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