The Swiss stock market experienced a significant downturn on Friday, with shares declining steadily as concerns over a potential U.S. recession intensified. Investor sentiment was shaken by a recent sluggish U.S. manufacturing activity report and labor data revealing fewer-than-expected job additions for July, prompting fears about growth in the world's largest economy.
Market participants also evaluated Swiss consumer price inflation figures alongside a plethora of quarterly earnings reports.
The benchmark SMI index closed with a substantial loss of 441.92 points, or 3.59%, settling at 11,875.52. After opening significantly lower, the index hit a session low of 11,845.08.
The VAT Group saw its shares plummet by 11.8%, while UBS Group and ABB dropped by 9.5% and 8.4%, respectively. Logitech International declined 7.65%.
Holcim, Partners Group, and Sika recorded losses between 6.6% and 6.9%. Notably, Sika announced the acquisition of Vinaldom, a chemicals construction company in the Dominican Republic, which expands its footprint in the Caribbean.
Kuehne + Nagel finished 6% lower, with Geberit, Alcon, Lonza Group, Richemont, Swiss Re, and SIG Group all down between 4% and 5.4%.
Straumann Holding, Swiss Life Holding, Zurich Insurance, Sandoz Group, SGS, Julius Baer, Sonova, Givaudan, Schindler Ps, and Novartis closed down by 2% to 3.7%, while Swatch Group shed nearly 2%.
Among the few gainers, Lindt & Sprüngli surged nearly 3.4%, and Nestlé, the sole other positive performer in the SMI, edged up by 0.3%.
According to data from the Federal Statistical Office, Switzerland's consumer price inflation remained steady in July, matching expectations. The consumer price index increased by 1.3% on a year-over-year basis, consistent with June's rise. In May, the inflation rate stood at 1.4%.
The overall inflation was largely driven by a 3.8% increase in housing and energy costs. In contrast, food and non-alcoholic beverage prices rose by just 0.1%, while clothing and footwear prices decreased by 1.8% compared to the previous year.
On a month-over-month basis, consumer prices fell by 0.2% in July, after showing no change in the prior month, marking the first decline in eight months.
