The Swiss market commenced strongly on Thursday morning, experienced some volatility by early afternoon, but ultimately rebounded to close the session modestly higher.
Investors responded to the Swiss National Bank's (SNB) interest rate decision and anticipated key economic data from the United States.
The SMI (Swiss Market Index) concluded with a rise of 61.24 points or 0.5%, settling at 12,209.62. This was nearly 60 points shy of the day's peak of 12,267.86.
As anticipated, the Swiss National Bank reduced its key policy rate by 25 basis points for the third consecutive meeting, lowering it to 1% from 1.25%.
Sight deposits held at the SNB will accrue interest at the policy rate up to a specified threshold, with an additional 0.5% interest for amounts exceeding this threshold.
"Further reductions in the SNB policy rate may be necessary in the coming quarters to maintain medium-term price stability," the bank stated.
The SNB revised its inflation forecast for this year to 1.2%, down from 1.3%. The 2025 projection was lowered to 0.6% from 1.1%, and the 2026 estimate was reduced to 0.7% from 1%.
The economic growth forecast remains steady at approximately 1% for this year.
In the market, Swatch Group shares surged over 12%, Richemont climbed 8%, and VAT Group advanced by 5.4%. Julius Baer, Logitech International, Adecco, Straumann Holding, and UBS Group saw gains ranging from 2.3% to 3%. Partners Group rose by 1.7%, and Lonza Group increased by 1.3%. Shares of Holcim, ABB, Sika, Sandoz Group, Sonova, and Schindler also finished significantly higher.
Conversely, Lindt Spruengli fell by about 3.2%. Novartis and Givaudan declined by 1.47% and 1.3%, respectively. SIG Group, Kuehne + Nagel, and Geberit also ended the session in negative territory.
