Upbeat Economic Growth Forecast Buoys Swiss Market Index
Swiss equities remained in positive territory on Thursday, with the Swiss Market Index up 0.57%, amid improved growth expectations for the domestic economy.The Federal Government Expert Group on Business Cycles upwardly revised its 2026 sport event-adjusted gross domestic product growth estimate for Switzerland to 1.7% from its previous 0.9% projection, after an "exceptionally strong" GDP expansion in the second quarter. For 2027, the economic growth forecast remains unchanged at 1.6%."A more favourable economic performance than forecast is also possible, for example if GDP growth in the second half of the year is stronger than currently assumed. In addition, a stronger economic recovery could materialise internationally and, in turn, in Switzerland. More favourable labour market developments could then further strengthen domestic demand," the expert group said. "Nonetheless, the conflict in the Middle East remains a major risk to the global economic outlook. Sustained high oil prices could place a significant burden on the global economy, and would also push inflation higher in Switzerland."Meanwhile, the country's trade surplus amounted to 5.61 billion francs in August, down from 8.09 billion francs in July, data from the Federal Office for Customs and Border Security showed. Exports and imports dropped 17.2% and 11.6% month over month, respectively, mainly due to the chemical and pharmaceutical sector.On the corporate front, the Swiss parliament's upper house postponed its Thursday vote on new capital requirements for UBS Group (UBSG.SW) to Sept. 23 after the debate on the matter ran past its allotted time, multiple media outlets, including Bloomberg News, reported. The outcome of the vote is expected to be passed to the lower house later in 2026 for further debate. The banking group's stock closed the trading session 0.31% higher.Medartis Holding (MED.SW) acquired US-based surgical training and bioskills research facility, the M.A.R.C. Institute, to establish the Swiss medical devices manufacturer's first permanent training facility outside Europe. The research center, which is located in Florida, will continue to operate under its name and existing leadership. At closing, Medartis shares gained 4.46%.Elsewhere, the annual inflation rate in the euro area accelerated to 3.2% in August from 2.9% in July, according to final data from Eurostat. In the UK, the Bank of England maintained its key rate at 3.75% after its Monetary Policy Committee voted 6-3 in favor of a hold.
