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Swiss Stocks Close Lower; Temenos Gains

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The blue-chip Swiss Market Index remained in negative territory on Wednesday, closing 0.86% lower, as investors digested a fresh batch of company updates and economic data prints across key markets.

Switzerland's Federal Council launched a public consultation on amendments to the country's Banking Act and the Liquidity Ordinance, including increased requirements for systemically important banks such as UBS Group (UBSG.SW). As part of the government's proposed measures, Swiss financial regulator FINMA would gain stronger supervisory powers, allowing it to impose fines for companies' noncompliance or late implementation of orders. The council also proposed to expand lenders' access to liquidity from the Swiss National Bank (SNBN.SW).

In response to the consultation drafts, FINMA recommended the implementation of the planned measures as a comprehensive package and welcomed the proposal to expand its supervisory tools. The SNB also welcomed the proposals, saying they are "crucial for resolving regulatory weaknesses highlighted" by the collapse of Credit Suisse, which UBS took over in 2023.

UBS shares closed the trading session flat, while the SNB's shares were down 0.32%.

Meanwhile, Temenos (TEMN.SW) will carry out a share buyback program of up to 100 million francs, set to begin Thursday and run until Feb. 26, 2027, at the latest. The Swiss banking software and technology company intends to use the repurchased shares for general corporate purposes, including potential acquisitions. The stock gained 1.19% at closing.

Elsewhere and on the economic front, the annual inflation rate in neighboring Germany accelerated to 2.8% in July from 2.3% in the previous month, while that in Italy ticked down to 2.9% from 3%. In the US, the annual inflation rate eased to 3.4% in July from 3.5% in June.

"We recognise that the [US Federal Reserve] has missed its inflation target for the past five years. Nonetheless, progress does appear to be being made and consumer inflation expectations are within tolerable ranges, suggesting little risk of second-round price effects from the energy spike. Meanwhile, market inflation expectations are benign, with 10Y break-even inflation rates in line with their 25-year average," ING said in a note. "The market is still pricing a rate hike from the Fed, but we see the more likely course of action is for the Fed to hold rates steady for a prolonged period, well into 2027."

On the geopolitical front, media reports suggested progress in US-Iran and Oman-Iran talks over traffic through the Strait of Hormuz amid fresh security concerns. A suspected Houthi strike in the Bab el-Mandeb Strait and a reported US attack on a vessel in the Gulf of Oman added to uncertainty, while President Donald Trump said the US was in a strong position and claimed control of the Strait of Hormuz.

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Update: US Equity Indexes Decline as Growth Sectors Hit Amid Gains in Crude Oil Ahead of July's Consumer Price Inflation Data

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Update: US Equity Indexes Fall as Communication Services Leads Sectors Lower, Crude Oil Up Amid Hormuz Reopening Concerns

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Exchange-Traded Funds Mixed, US Equities Fall After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM rose and IVV edged lower. Actively traded Invesco QQQ Trust (QQQ) shed 0.4%.US equity indexes slipped with government bond yields while crude oil extended gains as investors weighed geopolitical developments in the Middle East.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each added about 1%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) fell 0.2%; iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) also declined.The State Street SPDR S&P Semiconductor (XSD) added 0.9%, and iShares Semiconductor (SOXX) rose 0.5%.FinancialThe State Street Financial Select Sector SPDR (XLF) rose 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) advanced 1.1%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 1.1%.CommoditiesCrude oil rose 1%, and the United States Oil Fund (USO) gained 0.9%. Natural gas shed 1.5%, and the United States Natural Gas Fund (UNG) was down 1.1%.Gold on Comex rose 0.5%, and the State Street SPDR Gold Shares (GLD) shed 0.2%. Silver was down 0.4%, and iShares Silver Trust (SLV) lost 1.2%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) was down 0.5%. The Vanguard Consumer Staples ETF (VDC) fell 0.3%, and iShares Dow Jones US Consumer Goods (IYK) eased 0.3%.The State Street Consumer Discretionary Select Sector SPDR (XLY) was down 0.3%. VanEck Retail ETF (RTH) lost 0.6%, and the State Street SPDR S&P Retail (XRT) fell 0.7%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) dipped 0.4%, iShares US Healthcare (IYH) lost 0.4%, and Vanguard Health Care ETF (VHT) was down 0.3%. IShares Biotechnology ETF (IBB) rose 0.2%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) added 0.7%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also higher.CryptocurrencyIn midday activity, bitcoin (BTC-USD) fell 0.8%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) lost 0.8%, ProShares Ether ETF (EETH) was down 0.9%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) dipped 1.7%.

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