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Swiss Market Index Closes Week in Green; Roche Shares Gain

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The blue-chip Swiss Market Index bounced back to positive territory on Friday, closing 0.79% higher, as investors assessed the latest corporate releases, economy-related data prints and geopolitical happenings.

Switzerland took note of the additional US tariff of up to 12.5% on its imports but rejected allegations related to a forced-labor investigation, the Swiss Federal Department of Economic Affairs, Education and Research said in a social media post on X.

"[Overnight] the Trump administration finalized the details of the new Section 301 tariffs covering some 60 of the US' trading partners. Largely in line with what was signaled when the investigations into alleged forced labour practices in supply chains concluded last month, most of the largest trading partners including the EU, UK, Canada and Mexico will face a tariff of 10%, while others including Japan, South Korea and Australia will face a 12.5% levy," according to Deutsche Bank Research. "As a reminder, these duties arrive as today sees the expiry of the temporary 10% Section 122 tariffs, which themselves were announced after the Supreme Court in February struck down tariffs introduced under the International Economic Emergency Powers Act."

Over to corporates, SGS (SGSN.SW) shares shed 2.67% at closing as it reported a year-over-year decline in first-half attributable profit to 309 million francs from 314 million francs. Sales, on the other hand, grew 7.6% over the period to 3.68 billion francs. The Swiss testing and certification company also announced a series of acquisitions, including food risk intelligence platform Agroknow in Greece, high- and low-voltage electrical systems company TechCorp Services in Australia and three companies in the US.

"The ~60bps sequential acceleration in [organic sales growth] in Q2 despite the Middle East disruption is the key positive with [Natural Resources] and [Health & Nutrition] well ahead of consensus. [Adjusted operating income] margin in line with consensus, though we note materially higher than expected non-recurring costs vs. consensus/RBCe in the period. Strong underlying FCF growth (ex HQ disposal) driven by a CHF24m YoY drop in the working capital outflow and the FY26 outlook has been maintained," RBC Capital Markets said in a quick take note.

Meanwhile, Roche (RO.SW) secured a positive recommendation from the European Medicines Agency's Committee for Medicinal Products for Human Use for the approval of its Susvimo injection to treat neovascular age-related macular degeneration. The pharmaceutical giant's stock gained 1.29%.

Beyond Switzerland and in other news, the seasonally adjusted S&P Global Flash Eurozone Composite PMI Output Index rose to a five-month high of 51.9 in July from 50 in the previous month, reflecting a renewed increase in services business activity and a faster expansion in manufacturing output.

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Update: US Equity Indexes Slump, Crude Oil Soars as Trump Warns of Big Iran Attack

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes dropped as government bond yields jumped to the highest in a year and crude oil surged after President Donald Trump warned of a major operation in Iran.The Nasdaq Composite slumped 2.2% to 25,137.69, the S&P 500 dropped 1.2% to 7,408.30, and the Dow Jones Industrial Average declined 1% to 51,711.65 on Thursday. Consumer discretionary and communication services were the standout decliners, down more than 5% each, while technology also lagged. Industrials and health care topped the gainers.President Donald Trump is considering restarting major combat operations in Iran, including strikes bigger than the ones seen in Operation Epic Fury, according to an Axios report. "I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it," the president said.Yemen's Houthi rebels said they attacked two Saudi Arabian oil tankers in the Red Sea on Thursday to disrupt Middle East exports, according to a report from the Associated Press. If Houthis attack again, "the U.S. will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran, and major military punishment will be inflicted upon Iran and, of course, the Houthis themselves," Trump said in a Truth Social post.The CBOE Volatility Index VIX, also known as the fear gauge for equities, shot up 12% to 18.70.The front-month US West Texas Intermediate soared 6.1% to $92.13 a barrel, and global benchmark North Sea Brent spiked 6.5% to $100.19 a barrel.In precious metal markets, gold futures dropped 2.4% to $4,052.20, and silver futures slumped 4% to $57.91, reflecting concerns that an extended disruption to crude oil supplies may make it more challenging for the Federal Reserve to bring inflation down to its 2% target.US Treasury yields jumped, extending gains. The 10-year marched 3.8 basis points higher to 4.70% after touching its highest intraday level in a year. The two-year surged 4.7 basis points to 4.35% after yields hit a fresh 52-week high this week.In economic news, initial jobless claims fell 22,000 to 187,000 in the week ended July 18, the lowest since 1969 and trimming the four-week moving average by 7,250 to 207,500, a fourth straight decrease.In company news, Tesla (TSLA) shares fell 14.5%, the worst performer in the S&P 500 and the Nasdaq, after the firm reported a steeper-than-expected drop in Q2 adjusted earnings.The European Commission fined Alphabet's (GOOG, GOOGL) Google 890 million euros ($1.04 billion) for violating the Digital Markets Act by self-preferencing in Google Search and anti-steering practices on Google Play. Shares slumped 7.1%, among the steepest decliners on the S&P 500, the Nasdaq, and the Dow.After the bell, Intel (INTC) reported fiscal Q2 adjusted earnings of $0.42 per share, swinging from a loss of $0.10 a year earlier. Analysts polled by FactSet expected earnings of $0.22. Revenue for the three months ended June 27 jumped to $16.13 billion from $12.86 billion a year earlier. Analysts expected $14.44 billion.

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Asia Markets

Exchange-Traded Funds Lower as US Equities Decline After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV fell. Actively traded Invesco QQQ Trust (QQQ) eased 0.2%.US equity indexes dropped as government bond yields jumped with crude oil after Iran-aligned Houthis attacked Saudi Arabian tankers in the Red Sea and shares of mega-caps Alphabet (GOOG, GOOGL) and Tesla (TSLA) sank.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each added about 0.9%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) fell 1%; iShares US Technology ETF (IYW) shed 1.9%, and iShares Expanded Tech Sector ETF (IGM) was down 1.6%.The State Street SPDR S&P Semiconductor (XSD) slipped 1.5%, and iShares Semiconductor (SOXX) fell 1.2%.FinancialThe State Street Financial Select Sector SPDR (XLF) shed 0.5%. Direxion Daily Financial Bull 3X Shares (FAS) declined 2%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), advanced 1.9%.CommoditiesCrude oil rose 6.4%, and the United States Oil Fund (USO) added 6.9%. Natural gas gained 0.01%, and the United States Natural Gas Fund (UNG) was up 0.3%.Gold on Comex fell 2.4%, and the State Street SPDR Gold Shares (GLD) lost 2%. Silver was down 3.8%, and iShares Silver Trust (SLV) eased 3.1%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) fell 1.6%. The Vanguard Consumer Staples ETF (VDC) dropped 1.7%, and iShares Dow Jones US Consumer Goods (IYK) was down 1.3%.The State Street Consumer Discretionary Select Sector SPDR (XLY) slipped 4.4%. VanEck Retail ETF (RTH) lost 1.8%, and the State Street SPDR S&P Retail (XRT) was down 3%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) rose 0.9% and iShares US Healthcare (IYH) added 0.9%, and Vanguard Health Care ETF (VHT) gained 0.8%. IShares Biotechnology ETF (IBB) was up 1.1%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) added 1.7%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were higher as well.CryptocurrencyIn midday activity, bitcoin (BTC-USD) dipped 1.9%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) fell 2%, ProShares Ether ETF (EETH) was down 2.1%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1.3% lower.

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
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Update: US Equity Indexes Sink as Houthis Target Saudi Tankers in Red Sea, Mag-7 Stalwarts Disappoint

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes dropped as government bond yields jumped with crude oil after Iran-aligned Houthis attacked Saudi Arabian tankers in the Red Sea and shares of mega-caps Alphabet (GOOG, GOOGL) and Tesla (TSLA) sank.The Nasdaq Composite slumped 2.1% to 25,141.3, the S&P 500 dropped 1.2% to 7,410.6, and the Dow Jones Industrial Average declined 1% to 51,709.3 after midday Thursday. Consumer discretionary and communication services were the standout decliners, down almost 5% each, while technology also lagged. Industrials and energy topped the gainers.Iran flew Islamic Revolutionary Guard Corps commanders, military advisers, and missile- and drone-related equipment into Yemen this month, according to four sources, in a move that suggests Tehran is seeking to strengthen the ability of its Houthi allies to threaten Red Sea shipping, Reuters reported.Houthi rebels said they attacked two Saudi Arabian oil tankers in the Red Sea on Thursday, according to a report from the Associated Press, widening the disruption to crude oil supplies from the Middle East. President Donald Trump warned Tehran would be held accountable for any further Houthi attacks in the Strait of Hormuz, CNN reported. Secretary of State Marco Rubio said Iran "suckered" the group into attacking shipping lanes, the news report added.The CBOE Volatility Index VIX, also known as the fear gauge for equities, catapulted 14.5% to 19.05.Meanwhile, Jordan, Bahrain and Kuwait have reported retaliatory missile and drone attacks from Iran after a 12th consecutive day of US strikes on the Islamic Republic, Al Jazeera, a Middle Eastern broadcaster, reported.The front-month US West Texas Intermediate soared 6.3% to $92.33 a barrel, and global benchmark North Sea Brent spiked 6.9% to $100.60 a barrel.US Treasury yields jumped, extending gains. The 10-year marched 3.6 basis points higher to 4.69% after touching its highest intraday level in a year. The two-year surged 4.7 basis points to 4.35% after yields hit a fresh 52-week high this week.In precious metal markets, gold futures dropped 2.4% to $4,053.70, and silver futures slumped 3.9% to $57.96.In company news, Tesla shares fell 13%, the worst performer in the S&P 500 and the Nasdaq, after the firm reported a steeper-than-expected drop in Q2 adjusted earnings. Gross and operating margins missed consensus "considerably," and "more important aspects are an increase in capital investments and operating expenses related to the AI transition," Truist Securities said in a note. Free cash flow turned negative in Q2, with an outflow of $1.1 billion.The European Commission fined Alphabet's Google 890 million euros ($1.04 billion) after the company violated the Digital Markets Act through self-preferencing in Google Search and anti-steering practices on Google Play. Shares slumped 6.6%, among the steepest decliners on the S&P 500, the Nasdaq, and the Dow.United Rentals (URI) reported Q2 adjusted earnings and revenue above market expectations and raised its full-year fiscal 2026 sales guidance. Shares soared 12%, one of the top gainers on the S&P 500.Honeywell Technologies (HON) reported Q2 adjusted earnings and sales that beat consensus, and lifted its full-year 2026 earnings guidance range. Shares advanced 5.2%, the Dow's leader.

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