The Swiss market concluded Thursday's trading session with a steep decline, mirroring the downturn seen across European markets. This negative trend was driven by apprehensions regarding future interest rates and economic growth. On Wednesday, the Federal Reserve implemented an interest rate cut of 25 basis points but indicated that there would be fewer reductions in 2025 than previously anticipated. Meanwhile, the Bank of England maintained its interest rates with no changes.
The Swiss Market Index (SMI) dropped by 224.07 points, or 1.93%, closing at 11,414.84, remaining firmly in negative territory throughout the trading day. Notably, ABB saw a decline of 5.42%, and VAT Group fell by 5.14%. Partners Group experienced a decrease of 4.29%, while Straumann Holding, UBS Group, and Roche Holding registered losses ranging from 3.25% to 4%. Specifically, Roche Holding reported that its investigational drug prasinezumab failed to achieve the primary endpoint in their phase 2b Padova study for early-stage Parkinson's disease.
Additional losses were noted in companies such as Adecco, Logitech International, Holcim, Lonza Group, Geberit, Sika, SIG Group, Zurich Insurance Group, Richemont, and Schindler Ps, with declines between 1.5% and 2.7%. Other significant declines included Givaudan, Sonova, Julius Baer, Novartis, Alcon, and SGS.
Data released by the Federal Customs Administration revealed a significant decrease in Switzerland's foreign trade surplus in November, driven by a more substantial drop in exports compared to imports. The trade surplus shrank to CHF 4.0 billion in November from CHF 6.0 billion in October. Real export figures fell by 10.8% in November, reversing an 11.4% decrease noted in October, while imports decreased by 2.8%—marking the first reduction in three months.
In nominal terms, exports and imports reduced by 11% and 3.6%, respectively. Furthermore, the Federation of the Swiss Watch Industry reported a 3.8% annual decline in watch exports for November, primarily due to a 5.8% reduction in the shipment of steel watches.
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