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The Swiss stock exchange closed down for the third consecutive day, with the SMI Index falling 1.01% to 11,642.39 points, marking its sharpest decline in nearly a month. Investor caution prevailed ahead of key economic data, including US inflation figures and upcoming rate decisions from the Swiss National Bank and the European Central Bank.In the market, Richemont and other economically sensitive stocks like ABB and Geberit faced declines, while Nestlé hit a new yearly low. The financial sector was impacted by discussions surrounding UBS's takeover of Credit Suisse, with several insurance companies also struggling.
Major U.S. food companies, including Coca-Cola and General Mills, face a lawsuit alleging they have created addictive "ultra-processed" foods that contribute to chronic illnesses in children. The plaintiff, Brass Martinez, claims these companies knowingly designed harmful products, seeking compensatory and punitive damages for their actions. The case highlights growing concerns over the health impacts of highly processed foods and the industry's responsibility in addressing these issues.
Flowbank's liquidation has left many clients waiting for the return of their money and securities, with only 91.3% of privileged deposits repaid by the end of November. The process has been complicated by inadequate IT infrastructure, leading to delays in transferring over 10,000 custody account positions. Despite the challenges, the liquidator continues to work on resolving the situation while managing CHF 360 million in assets.
The SMI index is under pressure from Nestlé, Novartis, and Roche, while Richemont and Swatch see gains. As the stock market approaches the final two full weeks of 2024, attention turns to upcoming interest rate decisions from the SNB and ECB, with expected cuts of 25 basis points. The Fed's decision next week will follow key assessments of consumer and producer prices.
Arabica coffee prices have surged over 3% to levels not seen since 1977, with a year-to-date increase exceeding 70%. This rally is largely attributed to severe drought conditions in Brazil and adverse weather in Vietnam, impacting crop yields. Major companies like Nestle are adjusting pack sizes and prices to cope with rising costs, while traders remain cautious of potential profit-taking as prices approach historical highs.
IG
The Swiss stock market closed mostly higher on November 28, 2024, with the SMI rising 0.57% to 11,709.80 points, despite a lack of significant market-moving news. Julius Baer led gains with a 2.1% increase, while technology stocks like Logitech also performed well amid easing US interest rates. Conversely, Swatch Group and Richemont saw declines, reflecting ongoing challenges in the luxury sector.
Switzerland celebrated new carbon offset rules established at COP29 in Baku, which aim to restore trust in carbon markets amid concerns over greenwashing. The country, heavily reliant on offsets, is now positioned to define its agreements under Article 6.4, crucial for meeting its climate goals. However, critics warn of potential transparency issues and the risk of double counting in the offsetting process.
The global salty snacks market is projected to grow at approximately 7% from 2022 to 2028, driven by rising demand for convenient, low-sugar, high-protein snacks and innovative product offerings. Potato chips are expected to lead in growth, particularly in emerging economies, while retail channels will dominate sales due to increased e-commerce and consumer preferences. The Asia Pacific region is anticipated to hold a significant market share, fueled by rising disposable incomes and a growing appetite for flavored snacks.
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