Upbeat Economic Outlook Buoys Swiss Market Index
Swiss stocks staged a recovery on Friday, with the Swiss Market Index up 0.11% at the end of the trading session following a busy day of economic data prints across key markets and corporate updates.Switzerland's KOF Economic Barometer increased to 106.7 points in August from the revised 104.2 points in July."After its consecutive increases in the previous months, its level is now noticeably above its medium-term average. The outlook for the Swiss economy is positive," the KOF Swiss Economic Institute said. "The indicator bundles for manufacturing, other services, as well as foreign demand particularly reflect these positive developments. The indicator bundle for private consumption is slightly under pressure."In neighboring France, the annual inflation rate rose to 2.4% in August from 2.1% in the previous month, according to preliminary government data. Meanwhile, final data showed that the country's gross domestic product remained stable in the second quarter, after a 0.2% decline in the prior three-month period.Back home and on the corporate front, Roche (RO.SW) and German biopharmaceutical company BioNTech are ending the phase 2 trial assessing autogene cevumeran as an adjuvant monotherapy in patients with circulating tumor DNA-positive, surgically resected stage 2 or 3 colorectal cancer. The decision comes after the independent Data Safety Monitoring Board recommended discontinuing the clinical study. At closing, Roche shares shed 2.03%.On the flip side, Compagnie Financière Tradition (CFT.SW) gained 6.78% as it booked a year-over-year jump in first-half reported consolidated revenue to 597.8 million francs from 580.1 million francs. The Swiss interdealer broker's net profit group share also climbed over the period to 79.1 million francs from 70.2 million francs."Following today's solid numbers, we therefore expect a positive market reaction, even though the outlook for the further revenue growth evolution remains hard to predict. Following the blip in 1Q26 where IFRS revenue in only grew 3.6% yoy in constant currencies (also due to the high 2Q25 base), we assume a snapback in 3Q26 to 7.5% growth yoy and then a growth rate of 6% in 4Q26 - which also should define the trajectory for FY27E in our view. In CHF terms, easing FX pressures may also help a bit," Baader Helvea Equity Research said in a flash note.
