FX.co ★ Swiss Market Ends On Strong Note

The Swiss market concluded Thursday's session on a robust note, aligning with gains witnessed across European markets. This surge in optimism stems from heightened expectations of a Federal Reserve interest rate cut in September, following a dip in U.S. consumer price inflation data.

The benchmark Swiss Market Index (SMI) advanced by 104.59 points, or 0.86%, ending at 12,255.78, after reaching a high of 12,292.48 during the day.

Leading the gains, Sandoz Group saw a nearly 3.5% rise, while Straumann Holding increased by almost 3%. Julius Baer, Geberit, and Lonza Group all closed the session up between 2% and 2.5%.

Further contributions to the SMI's uplift included Alcon, which gained nearly 2%, and Holcim, Richemont, Sonova, Sika, Roche Holding, and Novartis, each of which reported gains between 1% and 1.5%.

Other notable movers were Swatch Group, Schindler Ps, UBS Group, Givaudan, and Partners Group, all closing higher as well.

However, not all companies shared in the day's positive performance. Lindt & Sprüngli dropped by more than 3%, while VAT Group and SIG Group descended by 1.31% and 1.15%, respectively.

Barry Callebaut's shares plunged nearly 12%, following the company's warning of upcoming challenges due to supply chain disruptions and increased cocoa prices. Despite these issues, the company reported an increase in sales revenue to 7.32 billion francs for the nine months ending May 31, up from 6.29 billion francs in the corresponding period the previous year.

On the economic front, the U.S. Labor Department reported a 0.1% decrease in the consumer price index (CPI) for June, following an unchanged reading in May. This was against economists' projections of a 0.1% increase. Excluding volatile food and energy prices, the core CPI inched up by 0.1% in June, after a 0.2% rise in May; economists had anticipated another 0.2% increase.

Additionally, the annual rate of consumer price growth decelerated to 3% in June from 3.3% in May, slightly below economists' expectations of a slowdown to 3.1%. The core annual rate of consumer price growth also eased to 3.3% in June from 3.4% in May, contrary to expectations for it to hold steady.