Swiss Market Ends On Firm Note On Positive Global Cues

(RTTNews) - The Switzerland stock market ended on a strong note on Tuesday, in line with markets across Europe, after data showing a tamer-than-expected U.S. consumer price inflation helped ease concerns about the outlook for interest rates.

Investors also digested a report lowering the forecast for Swiss economic growth.

The Swiss National Bank is expected to lift the benchmark rate by 50 bps on Thursday, softening its pace from 75 bps action at the previous quarterly meeting in September. This would mark the third consecutive increase.

The benchmark SMI, which stayed a bit sluggish till mid morning, climbed higher as the session progressed, and after hitting a high of 11,223.47, pared some gains and settled at 11,136.62, up 102.98 points or 0.93% from a day earlier.

Logitech, the top gainer in the SMI index, surged 3.71%. UBS Group gained nearly 3%, while Partners Group, Lonza Group, Geberit and Sika climbed 2.4 to 2.7%.

Richemont, Givaudan and ABB gained 1.9 to 2.1%, while Roche Holding and Alcon advanced 1.4% and 1.25%, respectively.

Credit Suisse and Zurich Insurance Group ended lower by 0.62% and 0.55%, respectively.

In the Mid Price Index, Zur Rose, AMS and VAT Group surged 5 to 5.6%. Temeons Group, Belimo Holding, Clariant and Straumann Holding gained 3.3 to 4.1%.

Georg Fischer, Adecco, Julius Baer, Schindler Holding and SIG Combibloc also ended sharply higher.

A report from the State Secretariat for Economic Affairs, or SECO said the Swiss economy will experience sluggish growth but it will not enter a severe recession next year, and is set to fare better in 2024 on the back of a global recovery.

The economy will grow only 1% next year, instead of 1.1% estimated in September. The outlook for 2022 was retained at 2%.

Moreover, subdued global demand will weigh on the Swiss foreign trade over the next two years, the expert group noted.

The SECO has downgraded its inflation projections for this year to 2.9% from 3% and that for 2023 to 2.2% from 2.3%.

Earlier in September, the central bank had projected inflation for this year at 3% and that for 2023 at 2.4% and 1.7% in 2024.

The government today estimated the unemployment rate to rise slightly to 2.3% next year from 2.2% this year.