Swiss equities were in positive territory on Monday's close, with the Swiss Market Index up 0.54%, as investors gear up for a busy week filled with business surveys and economic data releases across key economies.
Surveyed economic experts now expect Switzerland's real sports-adjusted gross domestic product to grow 0.9% in 2026, down from the 1% projection in March, according to the latest KOF Consensus Forecast. For 2027, economic growth is still anticipated to stand at 1.5%, while the five-year GDP growth rate estimate remains unchanged at 1.6%.
Elsewhere and on the geopolitical front, the US and Iran made "encouraging progress" in their peace deal talks in Switzerland aimed at reaching a final agreement within 60 days, agreeing to establish a committee and a "de-confliction" cell involving Lebanon, mediators Pakistan and Qatar said in a joint statement.
"This marks a notable shift from Saturday's confusion, when Iran suggested the strait was now closed again after Israeli attacks in Lebanon, and briefly stepped back from talks following renewed threats from President Trump, who reiterated that the US would strike again if Iranian-backed proxies in Lebanon continue attacks on Israel," Deutsche Bank Research analysts said. "Despite that rhetoric, oil flows through Hormuz have continued and even picked up over the weekend, helping to calm markets, with Brent reversing earlier gains this morning before details of the talks came through."
In the UK, Keir Starmer resigned as prime minister and leader of the Labour Party. He will remain in his post until a new party leader is selected, which is expected to take place before parliament returns in September.
Over to corporates, Lonza (LONN.SW) signed a new licensing agreement with US-based biotechnology company InduPro to advance the development of innovative antibody-drug conjugate therapies. Under the deal, InduPro will gain a nonexclusive global license to the Swiss pharmaceutical manufacturer's proprietary GlycoConnect, HydraSpace and linker-payload technologies. Lonza closed the trading session 0.34% higher.
Deutsche Bank Research raised its price target for Idorsia (IDIA.SW) to 4.50 francs from 4 francs, with a reaffirmed hold rating on the stock, ahead of the biopharmaceutical company's first-half results. Idorsia shares were up 1.67% at closing.
"Following the recent DD move - out of line with both the Swiss market and European healthcare -we take the opportunity to outline our view on (1) potential key drivers of the move and (2) revisit the investment thesis ahead of Q2 results (30th July), noting the underlying fundamental story remains unchanged and we reiterate our HOLD recommendation," the research firm said. "In the absence of fundamental newsflow across the three key catalysts highlighted in our post-Q1, we view the recent reaction as largely technical rather than fundamental driven."