The blue-chip Swiss Market Index ended Tuesday's trading 0.13% in the green as investors assessed the latest labor market and economic data releases amid diminishing hopes that the Strait of Hormuz would reopen any time soon.
Switzerland recorded a 0.8% annual growth in the number of employed people in the second quarter, while the unemployment rate rose to 4.9% from 4.6%, according to the latest Swiss Labour Force Survey.
In the euro area, the ZEW indicator of economic sentiment climbed to 31.4 points in August from 23.4 points in July, while the current economic situation indicator increased by 16.2 points to -21.5 points. The economic sentiment index for Germany, the eurozone's largest economy, also improved, rising by 7.9 points to 34.2 points in August.
Over to corporates, Huber+Suhner (HUBN.SW) achieved a 5.1% year-over-year growth in order intake to 542.8 million francs in the first half, with net sales rising to 457.4 million francs from 445.9 million francs. The Swiss electrical and optical connectivity group's EBIT, in contrast, fell 8.4% over the period to 41.2 million francs, alongside a lower net income.
"While order intake and net sales were broadly in line, EBIT came in 20% below expectations due to the [Optical Circuit Switches] ramp-up. Guidance was reiterated, implying a very strong second half ... [But] guidance remains below consensus expectations. Given the weak H1 performance, the targets appear ambitious. We, therefore, expect a negative market reaction," analysts at AlphaValue/Baader Europe said. The stock shed 11.35% at closing.
On the flip side, Basilea Pharmaceutica (BSLN.SW) gained 9.96% as it upgraded its full-year 2026 guidance, now expecting a 15% annual increase in total revenue and a 40% surge in operating profit, against the previously expected growth of 10% and 20%, respectively. For the first half, the biopharmaceutical company's total revenue jumped 14.4% to 119 million francs, while operating profit soared 31.7% to 31.6 million francs.
In geopolitical news, Iran will keep the Strait of Hormuz closed until the US ends its blockade of Iranian ports and meets the other conditions laid out in the June interim agreement signed by both countries, Reuters reported, citing top Iranian negotiator Mohammad Baqer Qalibaf's remarks published by state media.