On Tuesday, the Swiss stock market closed significantly lower, mirroring trends across European markets, driven by concerns about economic growth and uncertainty regarding the pace of interest rate cuts by the Federal Reserve.
Investors also evaluated the latest set of Swiss economic data.
The Swiss Market Index (SMI) fell to a low of 12,293.90, eventually closing down 103.29 points, or 0.83%, at 12,348.19.
Shares of Partners Group tumbled 9.2% following disappointing first-half results. Other notable decliners included VAT Group, down 3.6%, and Julius Baer, which slipped 3.01%. Sandoz Group, Roche Holdings, and Roche GS also saw declines ranging from 2% to 2.4%.
Several other major companies experienced losses: UBS Group, ABB, SIG Group, Kuehne + Nagel, Novartis, Straumann Holding, Lonza Group, Holcim, and Swatch Group fell between 1% and 1.5%.
Conversely, Givaudan rose 1.52%, and Sonova gained 1.32%. Swiss Life Holding, Swiss Re, Nestle, and Schindler Ps posted advances between 0.8% and 1.1%. Lindt & Sprüngli and Swisscom registered modest gains.
Data from the State Secretariat for Economic Affairs (SECO) revealed that Switzerland's economic growth accelerated in the second quarter, consistent with initial estimates, thanks to strong manufacturing and services output. Gross domestic product (GDP) grew 0.5% sequentially, following a 0.3% increase in the prior two quarters, aligning with the flash estimate.
Additionally, Switzerland's consumer price inflation in August eased more than expected, reaching its lowest level in five months, according to the Federal Statistical Office. The consumer price index rose 1.1% year-on-year in August, down from 1.3% in July and lower than the anticipated 1.2%, marking the weakest inflation rate since March, which saw prices rise 1%.
