The Swiss market concluded its trading session on a positive note on Wednesday, with several stocks exhibiting a strong performance due to anticipation of further monetary easing by central banks. However, concerns about tariffs persisted as U.S. President Donald Trump reaffirmed his intention to impose tariffs and taxes on certain countries.
The Swiss Market Index (SMI) maintained its strength throughout the day, finishing with an increase of 96.73 points, or 0.8%, settling at 12,207.89.
ABB surged by 3.72%, while Sonova rose by 3.11%. Partners Group ended 2.3% higher, with VAT Group, Alcon, and Lonza Group seeing gains between 1.8% and 2%.
Swiss Re, Richemont, Roche Holding, and Straumann Holding increased by 1.3% to 1.5%, whereas Zurich Insurance Group, Holcim, Swiss Life Holding, Sandoz Group, Julius Baer, and Sika posted gains ranging from 0.6% to 1%. Novartis concluded the day with a slight uptick.
Conversely, shares of Barry Callebaut, a manufacturer of chocolate and cocoa products, plummeted 8% after the company reduced its sales volume forecast for fiscal 2025. Despite this, the company reported an increase in sales revenue, reaching 3.45 billion francs in the first quarter, up from 2.24 billion francs during the same period last year.
Swisscom fell by 1.65%, Lindt & Sprüngli declined by 1.26%, and Kuehne + Nagel dropped by 1.06%. Geberit, SIG Group, Nestle, and Swatch Group also saw notable decreases.
At the Davos forum, Swiss National Bank Chairman Martin Schlegel informed Reuters that the central bank retains some capacity to further reduce interest rates, potentially even below 0%, should Switzerland's inflation rate decrease excessively. Presently, the SNB's policy rate is set at 0.5%.
