FINWIRES · TerminalLIVE
FINWIRES

Swiss Market Index Remains in Green; Adecco Tumbles

By

The Swiss Market Index remained in the green on Wednesday, closing 0.71% higher, as earnings updates from corporate majors and economy-related data prints poured in.

Zurich Insurance Group's (ZURN.SW) insurance revenue from its property and casualty segment climbed to $12 billion in the three months ended March 31 from the year-ago $10.78 billion, while gross written premiums climbed 17% on a reported basis to $15.56 billion. The life insurance business delivered a 5% reported growth in gross written premiums and deposits to $9.85 billion. Zurich's stock gained 4.07% at closing.

"All our businesses started the year strongly, with growth accelerating across targeted business lines and customer segments, including Specialty, Middle Market and Life Protection. Combined with our geographic diversification, these results highlight the resilience of our business model and the strength of our franchise," Group Chief Financial Officer Claudia Cordiol said. "Thanks to our strong capital position, we are well positioned to navigate the current uncertain environment and stay on track to meet or exceed our 2027 targets."

On the flip side, Adecco (ADEN.SW) saw its shares fall 16.67% as it booked a year-over-year decline in gross profit to 1.06 billion euros from 1.08 billion euros in the first quarter, with gross profit margin down 60 basis points to 18.8%, negatively impacted by currency effects. The Swiss recruitment services company's revenue and net income attributable to shareholders, on the other hand, grew 2% and 16% over the period, respectively.

On the defense front, Switzerland maintained its suspension of payments to the US for Patriot missile systems amid a further delay in delivery and higher costs due to the ongoing war in the Middle East. The Swiss government said it is reviewing potential options presented by the US and is awaiting feedback from five other suppliers of long-range, ground-based air defense systems from Germany, France, Israel, and South Korea.

Elsewhere and in economic news, the euro area's seasonally adjusted gross domestic product inched up 0.1% in the first quarter, after a 0.2% increase in the prior three-month period, according to Eurostat's second estimate. Meanwhile, flash data showed that the number of employed individuals in the euro area ticked up 0.1% in the first quarter following a 0.2% rise in the previous quarter.

The SIX Swiss Exchange is set to reopen on Friday after tomorrow's Ascension Day holiday.

Related Articles

Asia Markets

US Equity Indexes Mixed Amid Hot Producer Prices, Tech Gains

US equity indexes traded mixed after midday Wednesday as a hot producer price inflation print failed to restrain technology bulls.The Dow Jones Industrial Average fell 0.2% to 49,596.1, while the Nasdaq jumped 1.2% to 26,409.3 and the S&P 500 climbed 0.6% to 7,445.5. Utilities, financials, and real estate led the decliners. Communication services, consumer discretionary, and technology were among the top gainers.Of the top 10 companies with a market capitalization of more than $200 billion, implying a significant sway over indexes, seven were from technology and communication services. In the S&P 500, ON Semiconductor (ON) was among the top outperformers. Nasdaq's leader was Marvell Technology (MRVL), and Nvidia (NVDA) was the second-biggest gainer on the Dow.Nvidia Chief Executive Jensen Huang joined President Trump on his visit to Beijing, a last-minute addition that has raised expectations of progress in stalled talks over H200 AI chip sales to China, Reuters reported Wednesday.Cantor Fitzgerald adjusted its price target for ON Semiconductor to $100 from $95 while maintaining its neutral rating.In economic news, the US Producer Price Index jumped 1.4% in April from a 0.7% gain in March, according to the Bureau of Labor Statistics, beating the 0.5% increase expected in a survey compiled by Bloomberg. After excluding food and energy prices, core PPI surged 1.0% from 0.2%, above the 0.3% advance anticipated.Year-over-year, PPI soared 6.0% in April while core PPI catapulted 5.2%, both above their respective March rates and the strongest readings since December 2022.A hotter-than-expected PPI, coupled with Tuesday's larger-than-expected rise in the consumer price index, underscores not only the price impact already realized, but the additional inflationary pressures still coming down the pipeline, according to a Stifel note."As the administration continues to work for a resolution to the conflict, even with a nearer-term reopening of the Strait of Hormuz or a restoration of global oil supply and flows, given the lag time between oil and gas prices, the brunt of the price pressure may still be felt in the coming months," Lindsey Piegza, Stifel's chief economist, said in the note.Meanwhile, in its closely watched Oil Market Report, the International Energy Agency said the loss of Persian Gulf supply is depleting global inventories at a record pace. Inventories fell by 129 million barrels per day in March and by 117 million bpd in April, though rising output from producers outside of the Gulf is helping to ease the supply shock."With Hormuz tanker traffic still restricted, cumulative supply losses from Gulf producers already exceed 1 billion barrels with more than 14 mb/d of oil now shut in, an unprecedented supply shock," the agency said.West Texas Intermediate crude oil futures slipped 0.3% to $101.90, and Brent crude futures declined 1.5% to $106.19.US Treasury yields were mixed, with the 10-year up one basis point to 4.48%. The two-year rate was steady at 3.99%.In precious metals, gold futures rose 0.5% to $4,711.1, and silver futures jumped 5% to $89.84.

$^DJI$^IXIC$^SPX$MRVL$NVDA$ON
Asia Markets

Exchange-Traded Funds, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM edged lower and IVV rose. Actively traded Invesco QQQ Trust (QQQ) added 0.9%.US equity indexes traded mixed in midday trading on Wednesday amid a hot producer price inflation print.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each lost about 0.5%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) rose 0.9%; iShares US Technology ETF (IYW) gained 1.4%, and iShares Expanded Tech Sector ETF (IGM) was up 0.9%.The State Street SPDR S&P Semiconductor (XSD) climbed 3.3%, and iShares Semiconductor (SOXX) was up 2.4%.FinancialThe State Street Financial Select Sector SPDR (XLF) fell 1.1%. Direxion Daily Financial Bull 3X Shares (FAS) declined 3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), advanced 3.1%.CommoditiesCrude oil fell 0.5%, and the United States Oil Fund (USO) lost 1.1%. Natural gas rose 0.3%, and the United States Natural Gas Fund (UNG) added 1%.Gold on Comex was up 0.5% and the State Street SPDR Gold Shares (GLD) slipped 0.3%. Silver climbed 5%, and iShares Silver Trust (SLV) added 2.6%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) dipped 0.2%. The Vanguard Consumer Staples ETF (VDC) shed 0.2%, and iShares Dow Jones US Consumer Goods (IYK) fell 0.2%.The State Street Consumer Discretionary Select Sector SPDR (XLY) gained 0.6%. VanEck Retail ETF (RTH) fell 0.1%, and the State Street SPDR S&P Retail (XRT) was down 1.4%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) added 0.3%, iShares US Healthcare (IYH) rose 0.2%, and Vanguard Health Care ETF (VHT) gained 0.3%. IShares Biotechnology ETF (IBB) was down 0.3%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) fell 0.4%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also lower.CryptocurrencyIn midday activity, bitcoin (BTC-USD) dropped 1.9%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) shed 2.2%, ProShares Ether ETF (EETH) was down 1.6%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1.5% lower.

$^DJI$^EEM$^EXI$^FAS$^FAZ$^GLD$^IBB$^IGM$^IGV$^IPK$^IVV$^IWM$^IXIC$^IYE$^IYH$^IYJ$^IYK$^IYW$^PMR$^QQQ$^RTH$^SOXX$^SPX$^SPY$^UNG$^USO$^VDC$^VHT$^VIS$^XLE$^XLF$^XLI$^XLK$^XLP$^XLV$^XRT$^XSD$BETH$BITO$EETH
Asia Markets

Germany's DAX Index Closes Busy Earnings Day in Green

German shares ended an earnings-heavy session in positive territory, with the blue-chip DAX index up 0.76% on Wednesday.Merck KGaA (MRK.F) was among the index's top performers, rising 7.21%, after lifting its full-year 2026 guidance, driven by expected growth in its life science and healthcare businesses despite challenging market conditions. The German science and technology company expects 2026 net sales of 20.4 billion euros to 21.4 billion euros, compared with its previous forecast of 20 billion euros to 21.1 billion euros.Meanwhile, Siemens' (SIE.F) fiscal second-quarter sales held steady at 19.76 billion euros, 1.9% behind the consensus estimate of 20.14 billion euros and 1.4% below RBC Capital Markets' forecast of 20.03 billion euros. On the flip side, the German technology group's reported orders climbed 11% to 24.11 billion euros on increased demand in most of its industrial businesses, particularly smart infrastructure."Overall, a supportive progression in [Digital Industries / Smart Infrastructure] (but consensus already positioned in the upper end of guidance here), but slightly disappointing that this is offset at the group level by Mobility and Healthineers (SHL.F). While Siemens is making corporate progress with the reduction in its stake in Healthineers, the slow timeline on the spin, and uncertainty around factors such as the macro demand backdrop and AI software risks, may still limit investor enthusiasm in the short term," the research firm wrote in a quick-take note. Siemens was up 0.83% at the end of the trading day, while Siemens Healthineers gained 0.09%.In economic news, the eurozone's gross domestic product ticked up 0.1% for the first quarter, after a 0.2% rise in the previous three-month period and consistent with the initial estimate. According to Eurostat's second estimate, the eurozone registered 0.8% economic growth on a yearly basis, consistent with the initial data and against the previous 1.3% growth, which factored in recently joined Bulgaria, and the 1.2% jump excluding that country.Back at home, Germany's selling prices in wholesale trade were up 6.3% year over year in April, following a 4.1% jump in March. On a monthly basis, wholesale prices were 2% higher, against the previous 2.7% gain.On the geopolitical front, Danske Bank said it does not anticipate "major breakthroughs" from the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping. "Trump does not have the incentives nor the means to ramp up the pressure on China with focus remaining on the war in Iran and earlier court ruling still constraining his tariff weapon," the research firm wrote in a preview report.

$^DAX$MRK.F$SHL.F$SIE.F