-- The Swiss Market Index slipped back into the red on Thursday, closing 1.11% lower, as investors digested a fresh batch of corporate earnings and economic data releases while closely monitoring geopolitical developments in the Middle East.
Switzerland's foreign currency reserves declined to 715.73 billion francs in April from the revised 721 billion francs in March, according to data from the Swiss National Bank (SNBN.SW). In terms of jobs, government data showed that the unemployment rate in Switzerland ticked down to 3% in April from 3.1% in the previous month.
On the geopolitical front, a Swiss delegation led by Federal Department of Foreign Affairs State Secretary Alexandre Fasel met with the US deputy secretary of state in Washington, with talks focused on the current geopolitical situation, bilateral economic cooperation, innovation, and future-oriented issues.
In corporate news, telecommunications group Swisscom (SCMN.SW), travel retailer Avolta (AVOL.SW) and reinsurance giant Swiss Re (SREN.SW) were among Switzerland-listed companies that published earnings updates.
Swiss Re saw its shares lose 3.19% at closing as it reported a group insurance revenue of $10.03 billion in the first quarter, down from the year-ago $10.41 billion, impacted by lower revenue at its property and casualty reinsurance division and the company's ongoing exit from its iptiQ business. Group net income, in contrast, increased 19% year over year.
"Q1 net income of $1,513m was 27% above company-compiled consensus of $1,193m, but of mixed quality - driven almost entirely by nat cat losses 67% below the quarterly budget and flattered by a ~12pts discounting benefit in P&C Re (vs ~8pts in Q1 2025), albeit incorporating a $400m reserve strengthening for Iran War impact. Revenues, new business volumes and pricing reflected increasing cyclical pressure, however," RBC Capital Markets said in a quick take note, with a negative sentiment on Swiss Re.
Meanwhile, Roche (RO.SW) agreed to buy US-based company PathAI in a merger deal that would strengthen its digital pathology portfolio. The Swiss pharmaceutical major will make an upfront payment of $750 million and a further $300 million in milestones, with the deal anticipated to be completed in the second half. The stock was down 1.39% at the end of the trading day.