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Swiss Equities Slip as Renewed Middle East Tensions Rattle Markets

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Swiss shares dropped alongside European peers on Thursday, with the Swiss Market Index closing 0.90% lower, as a fresh escalation in tensions between the US and Iran weighed on investor sentiment.

US forces struck down Iranian drones in a fresh bout of fighting along the Strait of Hormuz, prompting retaliation from Tehran despite a ceasefire agreement remaining in place. US President Donald Trump said earlier that the strait is "going to be open to everybody" and suggested that the military "go back and finish it."

Among the biggest decliners in the blue-chip index were Partners Group (PGHN.SW), Swiss Life (SLHN.SW) and Alcon (ALC.SW), which fell 2.46%, 2.41% and 1.97%, respectively.

Meanwhile, Galenica (GALE.SW) reported sales growth of 7.3% to 1.41 billion francs in the first four months of 2026, driven by strong performance in its pharmacy and wholesale businesses. The company confirmed its 2026 guidance, including sales growth of 5% to 7%. The stock was down 0.66% at close.

On the economic data front, data from the Federal Statistical Office showed nonfarm payrolls growing 0.5% annually in the first quarter, compared with a 0.2% uptick in the previous three months.

KOF leading indicators are scheduled for release on Friday.

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Asia Markets

German Blue-chip DAX Index Blinks Red Amid Reignited US-Iran Conflict

Germany's blue-chip DAX index was downbeat on Thursday, closing 0.34% lower, as a fresh exchange of strikes threatens to derail US-Iran ceasefire talks.Reuters reported, citing an unnamed US official, that the US military launched defensive strikes in Bandar Abbas, Iran, shooting down four Iranian drones and targeting a ground control station. In response, Iran's Revolutionary Guard claimed it targeted the US air base responsible for the attack.Meanwhile, Washington and Tehran have yet to resolve critical impasses in negotiations, with US President Donald Trump saying he is "not satisfied" with the current terms. The White House also refuted the unofficial draft released by Iranian state TV, saying it was a "complete fabrication."The rising tensions lifted German defense stocks, including arms maker Rheinmetall (RHM.F), military and civilian propulsion systems group Renk Group (R3NK.F) and defense technology company Hensoldt (HAG.F), which gained 4.15%, 5.44% and 5.88%, respectively, on Xetra.Rheinmetall shares received an additional boost after securing a 1.02 billion-euro order for over 2,000 military transport vehicles for the German armed forces, or Bundeswehr. The order falls under a framework contract signed in 2024 for up to 6,500 vehicles.In other corporate updates, Bayer (BAYN.F) is facing a lawsuit from US seed company Latham Quality, which alleges the German life sciences company monopolized the genetically engineered corn seed market through anti-competitive pricing and blocking generic competitors. The plaintiff is seeking damages and an injunction to restore market competition.In an emailed statement to, Bayer said the claims "lack merit," and intends to answer the allegations in court, adding that the crop input and corn seed markets are "competitive, fair and diverse." The stock was down 0.73% at the close.On the economic side, the euro area economic sentiment indicator edged up to 93.5 in May from a revised 93.2 a month earlier, according to the European Commission's monthly survey. Meanwhile, the final consumer confidence index stood at -19 points, confirming the flash estimate and against the -20.6 points previously.

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Asia Markets

European Stocks Close Lower in Thursday Trading; Defense Stocks Rally as US-Iran Tensions Persist

The European stock markets closed lower in Thursday trading as investors' hopes of a potential peace treaty between the US and Iran appear to have waned as the two countries continue to exchange fire.The Stoxx Europe was down 0.5%, Germany's DAX fell 0.4%, the FTSE 100 dropped 0.7%, France's CAC lost 0.2%, and the Swiss Market Index declined 1%.Defense stocks tempered the market losses and rallied during trading. BAE Systems, Rolls-Royce, and Melrose Industries were all higher in London, as were Thales, Airbus, and Safran in Paris. Rheinmetall and MTU Aero also rose in Frankfurt.And in corporate news, BP's former chairman, Albert Manifold, rejected allegations leveled against him during his tenure at the oil and gas exploration giant, CNBC reported Thursday. BP's board on Tuesday announced the removal of Manifold due to "serious concerns" about governance standards, oversight, and conduct.In a response issued on Thursday, Manifold said that while he does accept the board's decision to remove him as chairman, he did not accept "that lies can be told about me, nor that anyone should be allowed to hide behind anonymity when commenting on my time at bp," the news report said."We note the comments of our former chair. We stand by the statement we have made. We have a duty of care to all our employees, particularly those impacted by his behavior," a BP spokesperson said in an e-mailed comment.Shares of the British oil and gas giant edged 0.2% higher in London.Deutsche Bank terminated some staff members due to its client relationship with Jeffrey Epstein, Bloomberg reported Thursday, quoting comments by the bank's Chief Executive Christian Sewing at a shareholder meeting in Frankfurt."Where appropriate, we have taken personnel measures, this includes ending our employment relationships with certain individuals," Sewing was quoted as saying.Sewing did not specify which employees were terminated, the report said.Shares of the German lender declined 0.6% in Frankfurt.TotalEnergies and Stellantis have renewed and expanded their partnership in Europe to develop and deliver engine oils and lubricants, the companies said Thursday.Financial details of the renewal and expansion were not disclosed.The new agreement, originally renewed in 2021 for the Peugeot, Citroen, Opel, DS Automobiles, and Vauxhall brands, now also includes additional Stellantis brands: Fiat, Jeep, Lancia, Alfa Romeo, and Abarth, the companies said.Shares of TotalEnergies and Stellantis closed marginally lower in Paris.Ferrari Chief Executive Benedetto Vigna said the company is already receiving orders from new and old customers for its first electric model, Bloomberg reported Thursday.On Monday, Ferrari unveiled its new all-electric Luce sports car and said it was expanding its lineup with a dedicated electric platform. The luxury sports car maker's shares fell sharply after the announcement, as investors seemed wary of the high price of the car, which was reported by media outlets to start at 550,000 euros ($640,000).Ferrari didn't immediately respond to a request for comment from.Ferrari's stock gained 3.6% in Milan.Sanofi has been granted US Food and Drug Administration priority review for a new drug application for venglustat for the treatment of type 3 Gaucher disease, a rare disorder, the company said Thursday.The application is backed by data from a phase 3 study in which venglustat met both its primary endpoints and three out of four key secondary endpoints, the drugmaker said.Shares of Sanofi lost 1.4% in Paris.

Asia Markets

European Equities Traded in the US as American Depositary Receipts Edge Lower Thursday

European equities traded in the US as American depositary receipts were trending slightly lower late Thursday morning, declining 0.1% to 1,873.2 on the S&P Europe Select ADR Index.From continental Europe, the gainers were led by internet advertising firm Criteo (CRTO) and medical device maker EDAP TMS (EDAP), which rose 3.3% and 3.2% respectively. They were followed by biopharmaceutical company Cellectis (CLLS) and software firm SAP (SAP), which were up 2.8% and 1.2% respectively.The decliners from continental Europe were led by telecommunications company Nokia (NOK) and brewing company Anheuser-Busch InBev (BUD), which fell 2.5% and 1.4% respectively. They were followed by biopharmaceutical company Grifols (GRFS) and biotech firm BioNTech (BNTX), which were down 1.1% and 0.3% respectively.The gainers from the UK were led by biopharmaceutical company Akari Therapeutics (AKTX) and biotech firm Autolus Therapeutics (AUTL), which advanced 43.9% and 1.5% respectively. They were followed by communications company WPP (WPP) and biopharmaceutical company Biodexa Pharmaceuticals (BDRX), which increased 0.9% and 0.3% respectively.The decliners from the UK and Ireland were led by pharmaceutical company Silence Therapeutics (SLN) and insurance company Prudential (PUK), which dropped 4.2% and 2.3% respectively. They were followed by lender HSBC (HSBC) and biopharmaceutical company Amarin (AMRN), which lost 2% and 0.6% respectively.

$AKTX$AMRN$AUTL$BDRX$BNTX$BUD$CLLS$CRTO$EDAP$GRFS$HSBC$NOK$PUK$SAP$SLN$WPP