FX.co ★ Swiss Market Ends Moderately Lower

The Swiss market closed moderately lower on Thursday amid apprehensions that the Federal Reserve is expected to cut interest rates only once this year, contrary to earlier predictions of two or three reductions.

The benchmark SMI decreased by 71.60 points, or 0.59%, finishing at 12,095.99. During the session, the index fluctuated, reaching a high of 12,175.52 and a low of 12,072.74.

Sika saw a decline of 3.13%, while UBS Group fell approximately 2.5%, and Straumann Holding decreased by 2.1%.

Other notable losers included VAT Group, Julius Baer, Richemont, ABB, Sonova, Swiss Re, and Partners Group, each dropping between 1% to 2%.

SIG Group, Lonza Group, Geberit, Holcim, and Givaudan also recorded significant losses.

Conversely, Sandoz Group and Roche Holding gained 1.26% and 1.19%, respectively. Swisscom, Lindt & Sprüngli, and Logitech International experienced modest gains.

In economic news, data from the Federal Statistical Office revealed that Switzerland's producer and import prices continued their downward trend in May, falling by 1.8% year-on-year, identical to the previous month's decrease. This decline has been ongoing since May 2023.

Specifically, the producer price index fell by 1.3% annually in May, while import prices dropped by 2.9%. On a monthly basis, producer and import prices declined by 0.3% in May, compared to a 0.6% rise in the prior month, marking the first decrease in four months.