Market in Switzerland Concludes with Strength
The Swiss market closed on a positive note on Thursday, with the benchmark SMI increasing by 0.43%. The Switzerland market ended at 11,961.87.
Earnings Updates
The Swiss lift and escalator maker, Schindler Holding AG, reported a 5.7% drop in its second-quarter sales, mainly due to negative currency exchange effects. The watch industry also saw a decline, with Swatch Group reporting a significant drop in net earnings from 136 million Swiss francs to 3 million francs in the first half of 2025, citing challenges in the Chinese market as a major factor. However, stocks like Nestlé, Holcim, and Geberit showed minor positive movements, with Nestlé up 0.74% and Holcim up 0.16%.
ABB, on the other hand, soared nearly 10% due to a positive third-quarter revenue outlook and the maintenance of its fiscal 2025 growth view. In its second quarter, ABB's net income was $1.15 billion, up 5% from last year. ABB projects comparable revenue growth to be at least in the mid-single digit range for the third quarter.
Trade Dynamics
While there were no specific mentions of trade deal hopes in the provided search results, the global economic outlook has been impacted by increasing trade tensions, which could potentially influence Switzerland's trade dynamics.
Economic Overview
The Swiss economy experienced strong GDP growth in the first quarter of 2025, largely due to exports to the U.S. However, growth is expected to slow for the remainder of the year, with the Swiss National Bank (SNB) forecasting GDP growth of 1% to 1.5% for both 2025 and 2026.
Inflationary pressures have decreased, with inflation rates dropping from 0.3% in February to -0.1% in May. The Swiss franc has remained steady but somewhat soft against the U.S. dollar. The SNB recently lowered its key policy rate to 0%, marking the sixth consecutive reduction in June 2025.
In other economic news, exports increased by 8.6 percent monthly in June, while imports dropped by 7.1 percent. Switzerland's foreign trade balance rose to CHF 13.4 billion in Q2 from CHF 13.0 billion in Q1. The trade surplus also increased, with June's trade surplus rising to CHF 4.3 billion from CHF 2.2 billion in May.
In the first half of 2025, there was a slight drop of 0.1 percent decline in watch sales compared to the same period in 2024. Watch exports decreased 5.6 percent on a yearly basis to CHF 2.2 billion in June.
Other Companies' Performance
Richemont tumbled 3.65% in the market, while Novartis closed lower by about 1.9%. However, several other companies saw gains. ABB's Operational EBITA margin is expected to remain stable year-on-year for the third quarter. Schindler Ps, Logitech International, Lindt & Spruengli, Holcim, UBS Group, Geberit, Kuehne + Nagel, Alcon and Straumann Holding gained between 1.3% and 2.1%. VAT Group gained 4.1%. Swiss Re, Sika, Adecco and Partners Group climbed between 0.8% and 1.1%. SGS, Givaudan and Roche Holding posted modest gains.
In the realm of watch exports, watch sales and exports have shown a decline, but the Swiss market remains resilient, with other sectors contributing to its overall growth. The global economic outlook, trade dynamics, and domestic economic performance will continue to shape the Swiss market in the coming months.
Finance experts are closely monitoring the Swiss market, as various industries, including watch manufacturing, experience different financial performances. For instance, watch giant Swatch Group reported a significant drop in net earnings, while companies like Nestlé, Holcim, and Geberit showed minor positive movements in the business sector. Meanwhile, ABB, a key player in the finance and investing field, soared nearly 10% due to positive earnings outlook and maintained its fiscal growth view for 2025.
