On Wednesday, the Swiss market managed to stay in positive territory for much of the day, but a mild wave of selling pressure towards the final hour resulted in a slight decline by the close. The continuing geopolitical tension from the Russia-Ukraine conflict remained a key factor affecting investor sentiment. Additionally, market participants digested significant economic data from Europe, notably the UK inflation figures.
The SMI benchmark, which had climbed to 11,641.97 early in the session, ultimately concluded with a small decrease of 1.79 points, closing at 11,539.64, approximately 30 points above the day's lowest point.
Among individual stocks, VAT Group fell by 2.37%, while Adecco, Kuehne + Nagel, Swatch Group, Sika, Logitech International, Straumann Holding, Schindler Ps, and Roche Holding saw declines ranging from 0.5% to 1.1%.
Conversely, Partners Group experienced nearly a 1% rise after acquiring a majority stake in Bluesea Hotels, a hospitality platform based in Spain. The agreement will see Partners Group taking a seat on Bluesea's board to oversee renovations, expansions, and hotel acquisitions in collaboration with Portobello Capital.
Holcim recorded a 1.83% increase, with Julius Baer appreciating by 1.3%. Other gainers included Sonova, Swiss Life Holding, Lindt & Sprüngli, Lonza Group, and Swiss Re, all of which advanced between 0.5% and 1%.
The geopolitical instability due to the ongoing Russia-Ukraine conflict continued to exert pressure on market sentiment. Following a warning about a potential significant Russian airstrike on Kyiv, the U.S. Embassy announced its closure for the day as a precautionary measure. This development followed Russia's vow to retaliate against President Joe Biden's decision to permit Ukraine to strike Russian targets using U.S.-made missiles, a decision that provoked the Kremlin.
Both the Greek and Spanish embassies in Kyiv also remained closed to the public, responding to multiple overnight air raid sirens.
In economic news, UK consumer price inflation surpassed expectations in October, diminishing the probability of a rate cut at the December monetary policy meeting. According to the Office for National Statistics, the consumer price index rose 2.3% year-on-year, up from September's increase of 1.7%—the lowest since April 2021. This rate exceeded the Bank of England's 2% target and surpassed economists’ forecasts of 2.2%.
