FX.co ★ Swiss Market Closes Modestly Lower

On Wednesday, the Swiss market experienced a turbulent session, opening weak and struggling for support until early afternoon. Although it briefly ascended later in the day, it ultimately closed on a negative note.

Investor sentiment was dampened by uncertainties regarding the magnitude of the anticipated U.S. interest rate cut and ongoing concerns about global economic growth.

The SMI (Swiss Market Index) finished down 41.80 points, or 0.35%, at 11,922.91. After peaking at 12,022.37 around mid-afternoon, the index dipped to 11,877.88 before regaining some ground.

Among individual stocks, SIG Group fell by 2.4%, while Lindt & Sprüngli, Novartis, and Logitech International each declined by approximately 1.3% to 1.4%. Holcim also ended lower, down 1.03%, and Julius Baer, Swiss Re, Sika, and Lonza Group each lost between 0.4% to 1.03%.

Nestlé faced a modest decline. The company agreed to pay a €2 million fine to settle criminal allegations in France concerning the natural mineral water production at its Nestlé Waters Supply Est unit, as reported by Bloomberg.

Conversely, Givaudan, Zurich Insurance Group, and UBS Group posted gains of 0.6% to 0.8%, while VAT Group advanced approximately 0.4%.

In the United States, data from the Labor Department revealed a 0.2% increase in the consumer price index (CPI) for August, consistent with the rise in July and matching economist forecasts. However, core consumer prices, which exclude food and energy, rose by 0.3% in August, exceeding the 0.2% increase of the previous month and analysts’ expectations.

Despite this, the Federal Reserve is still anticipated to lower interest rates in the upcoming week. However, the larger-than-expected rise in core consumer prices reduces the probability of a 50 basis points rate cut. According to CME Group's FedWatch Tool, there is an 83% likelihood of a quarter-point rate cut and just a 17% chance of a half-point rate cut.