Swiss stocks remained in the red, with the Swiss Market Index down 0.11% on Thursday's close, as investors assessed the latest monetary policy decision at home, alongside corporate updates and geopolitical developments.
The Swiss National Bank (SNBN.SW) maintained its policy rate at 0%, as expected, while lifting its conditional inflation projections for 2026 through 2028 amid global economic uncertainties related to the ongoing war in the Middle East and the trade policy environment.
"Since our last monetary policy assessment in June, inflation has risen further. This rise above all reflects the higher energy prices. Despite this development, at 0.8%, inflation in Switzerland is relatively low by international standards," SNB Governing Board Chairman Martin Schlegel said, noting that uncertainty regarding inflation and economic developments is still high. "In addition, our new conditional inflation forecast indicates that medium-term inflationary pressure has only increased slightly compared with June. Assuming a constant SNB policy rate of 0%, the inflation forecast remains within the range consistent with price stability, which we equate with an inflation rate of between 0% and 2%, over the entire forecast horizon."
Over to corporates, a US district judge in New York dismissed a lawsuit filed against Novartis (NOVN.SW) by the Iron Workers Local 580 Insurance Fund, alleging that the Swiss drugmaker misused one of its patents to delay the generic version of its heart failure medication Entresto. The court determined that Novartis' patent was "properly listed" in the so-called Orange Book and ruled that the plaintiff's argument lacked merit. The stock closed the trading session 1.16% higher.
Deutsche Bank Research lifted its price target for Tecan Group (TECN.SW) to 198 francs from 176 francs, with a hold rating on the stock, amid expectations that the "modest" channel and regional improvements seen by the Swiss laboratory automation company in the first half continued into the third quarter. At closing, Tecan's shares added 4.68%.
"However, given tougher comps, particularly in the Partnering business, we forecast sales growth to slow to the midpoint of the low-single-digit range (vs. 3.4% CER in H1). While we expect the book-to-bill ratio to remain above 1x, order intake could be slightly negative due to demanding comps," the research firm noted.
On the geopolitical front, an unnamed senior Iranian official told Reuters that "diplomacy is continuing" between Iran and the US despite still having "many differences" in opinion, with the Iranian government reviewing the latter's response to its peace proposals. The statement comes after Iranian President Masoud Pezeshkian's speech at the UN General Assembly, saying his country "will not bow" to US pressure.