Swiss shares ended the week on a cautious note of optimism as markets awaited confirmation of a potential extension to the US-Iran ceasefire along the Strait of Hormuz.
The Swiss Market Index closed 0.28% higher on Friday, finishing the week in the green after reports that US and Iranian diplomats reached a tentative deal to extend their ceasefire by 60 days and open a new round of talks on Tehran's nuclear program.
In corporate news, UBS Group (UBSG.SW) reportedly let go of several hundred staff across its offices in Europe, the Middle East and Africa as part of integration efforts following its 2023 takeover of Credit Suisse, sources told Bloomberg. UBS had no comment on the Bloomberg story, but toldthat it will keep the number of job cuts related to the integration at home and globally "as low as possible." The stock was up 0.95%.
Looking outside the blue-chip index, Dottikon ES (DESN.SW) plunged 20.92% after reporting lower earnings for its fiscal year ended March 31 and scrapping its dividend, citing the need to reinvest in the business.
Meanwhile, Sandoz Group (SDZ.SW) was 0.43% higher at close after it filed a draft anti-dumping complaint with the European Commission regarding Chinese imports of amoxicillin, which the pharmaceutical company said are clearly distorting the market with below-cost pricing and state subsidies.
On the economic front, the KOF Swiss Economic Institute's economic barometer increased to 98 points in May from the revised 97.8 points in April. KOF said the figure, which remains below the indicator's medium-term average, reflects a "muted" Swiss economy.
The next week will bring a fresh batch of Swiss economic data, starting with April retail sales and the final reading of first-quarter GDP on Monday, followed by April trade numbers on Tuesday. May inflation and unemployment numbers will be released on Thursday.