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Strong Q2 Economic Growth Lifts Swiss Stocks; Givaudan Rises

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The blue-chip Swiss Market Index extended its gains on Thursday, ending the trading session 0.22% higher, as the domestic economy grew in the second quarter of 2026 at the strongest rate since the third quarter of 2021.

Switzerland's seasonally and sporting event-adjusted gross domestic product rose 1.5% in the second quarter, after a revised 0.5% gain in the prior three-month period, consistent with the flash estimate, final data from the State Secretariat for Economic Affairs SECO showed.

"Value added in the industrial sector (+3.9%) increased strongly in the second quarter, driven mainly by manufacturing (+4.5%). After several quarters of weak or, in some cases, negative growth, the chemical and pharmaceutical industry (+10.5%) expanded sharply, reflecting higher exports and sales. Growth in the rest of manufacturing (+0.7%) was moderate, although developments varied across individual sub-sectors," SECO said. "Overall, goods exports (+5.5%) increased at an above-average rate."

Meanwhile, the Swiss annual inflation rate accelerated to 0.8% in August from 0.4% in July, according to data from the Federal Statistical Office. The latest reading is above the market forecast of 0.5%. On a monthly basis, consumer prices were up 0.4%, against the previous month's 0.1% downtick.

In corporate news, Deutsche Bank Research raised its price target for Givaudan (GIVN.SW) to 3,700 francs from 3,650 francs, with a buy rating on the stock, amid a model update following the Swiss flavors and fragrances group's summer investor conference and discussions with the company. Givaudan's shares closed 2.40% in the green.

"[We] have made modest earnings upgrades to reflect the continued strong momentum in Fragrance & Beauty (F&B) and expected sequential improvement in Taste & Wellbeing (T&W) going into H2. We have increased our Q3 26 OSG forecast from 4.6% to 5.6%, the highest expected Q3 growth rate among F&F peers and above the VA consensus of 4.5%," the research firm noted. "We slightly raise our FY OSG forecast to 4.4% (from 4.1%), with OSG upgrades flowing through to EBITDA."

Nestlé (NESN.SW) will build a new infant formula manufacturing facility in Ituiutaba, Brazil, as part of plans to invest 310 million francs in its nutrition and health business in the South American country by 2028. The consumer goods giant will set aside 94 million francs for the construction of the new facility, which is anticipated to be operational in the second quarter of 2028. At closing, the stock was down 1%.

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Update: US Equity Indexes Rise Amid Lower Treasury Yields, Higher Crude Oil

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Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH