Swiss Stocks Recover as US Rate Decision Takes Center Stage
The blue-chip Swiss Market Index was up 0.43% on Wednesday's close, as markets assessed a fresh batch of economic data prints and corporate updates while awaiting the US Federal Reserve's rate move."Previously this week we revised our call now expecting a 25bp rate hike at the meeting. Given the current market pricing (90% probability of a hike), and the fact that we have long argued rate hikes are eventually on the horizon in any case, tightening now likely represents the path of least resistance. We do not think the decision is a completely done deal, and we believe there will be 2-3 dissenters in favour of a hold," according to analysts at Danske Bank. "We still expect the FOMC to publish its updated economic projections and 'dots', even if [Fed Chair Kevin Warsh] opts out from submitting his personal views again."In the UK, the annual inflation rate increased to 3.1% in August from 2.9% in the previous month, while annual core inflation held steady at 2.6%.Back home, Helene Budliger Artieda will step down as head of Switzerland's State Secretariat for Economic Affairs SECO, effective March 31, 2027, according to the Federal Council. Swiss President Guy Parmelin is set to appoint a search committee in the coming weeks to find Budliger Artieda's successor.Over to corporates, Vetropack (VETN.SW) presented its new 2035 strategy at its capital markets day. Under the plan, the Swiss glass packaging manufacturer aims to achieve above-market sales growth in the low single-digit percentage range, at constant exchange rates, by 2030, compared with 2025, and return to a two-digit operating margin. The stock added 0.24% at closing.Galderma Group (GALD.SW) reported that a study of Restylane Volyme in China met its primary endpoint of effectiveness and safety, compared with a no-treatment control, in the correction of moderate-to-severe temple hollowing. The results also support the Swiss dermatology company's goal to expand the availability of its Restylane hyaluronic acid injectables portfolio in the Asian country. At the end of the trading session, Galderma's shares were 0.49% in the green.Meanwhile, Novartis (NOVN.SW) was up 0.39% as it discontinued the development of VHB937 in amyotrophic lateral sclerosis, a fatal neurological disorder, after results from its phase 2 Astrals trial showed that the therapy did not meet its primary or secondary endpoints. "We remain committed to sharing the study findings and applying the learnings from this research to advance scientific understanding of neurodegenerative diseases and inform future research efforts," the Swiss drugmaker told.
