Swiss Market Ends Weak Amid Interest Rate Uncertainty

(RTTNews) - The Switzerland market ended weak on Tuesday, although the downside was less pronounced than that of the major markets in Europe. Data showing a slowdown in Swiss consumer price inflation helped limit market's losses.

Fading hopes about an early interest-rate cut by the Fed following hotter-than-expected U.S. consumer price inflation data weighed on sentiment.

Data from the Federal Statistical Office showed Switzerland's consumer price inflation eased unexpectedly in January to the lowest level in more than two years.

The consumer price index, or CPI, climbed 1.3% year-over-year in January, slower than the 1.7% gain in December. Meanwhile, economists had expected inflation to remain stable at 1.7%. The latest inflation was the weakest since October 2021, when prices had risen 1.2%.

Further, inflation remained within the central bank's target range of 0-2%.

The benchmark SMI, which stayed positive till more than an hour past noon, ended the session with a loss of 36.51 points or 0.33% at 11,142.70. The index, which advanced to 11,231.94 around mid-morning, dropped to a low of 11,100.88 before recovering some lost ground.

Geberit, Sika and Richemont lost 1.8 to 1.9%. UBS Group ended down 1.5%, while Sonova, Partners Group, Lonza Group, Holcim, Alcon and ABB closed lower by 0.7 to 1.3%.

Swiss Re climbed about 1.5%, and Zurich Insurance Group ended nearly 1% up. Swisscom, Logitech International, Roche Holdings and Novartis also closed higher.

In the mid price index, ams OSRAM AG ended down 3.2%. Julius Baer drifted down 2.14%, and Straumann Holdings lost 1.9%.

Swatch Group, VAT Group, Flughafen Zurich, Adecco, Ems Chemie Holding, Swiss Prime Site, Temenos Group and Clariant ended down 1 to 1.6%.

Sandoz, Meyer Burger Tech and Lindt & Spruengli gained 2.25%, 2.15% and 1.81%, respectively.