Swiss equities showed positive performance on Tuesday, with the Swiss Market Index concluding 0.33% higher. However, the Swiss Federal Government Expert Group on Business Cycles has revised its 2025 economic growth prediction down to 1.5%, a fall from the previous 1.6% outlook in September. This adjustment is due to the 'very high' uncertainty surrounding international economic and trade policies.
Furthermore, the gross domestic product forecast for 2024 has also been reduced to 0.9% from the earlier projection of 1.2%, with expectations set for a 1.7% growth in 2026. The KOF Swiss Economic Institute has likewise revised its forecasts for the Swiss economy, primarily influenced by a 'sluggish' international environment, especially concerning Germany and France.
'The already weak international economy deteriorated further in the fourth quarter... This weak demand is likely to continue until the middle of next year, when the economic situation should improve slightly,' stated KOF. 'While domestically focused sectors are performing fairly well due to buoyant consumption, the export-driven portion of the Swiss economy is being impacted by subdued international demand and the strong franc.' In the corporate sector, Sandoz ($SDZ) saw a decline of 0.67% in its shares following a $275 million settlement for its US generic drug antitrust class action litigation, with the payment expected to be completed by the end of 2024.
The Swiss pharmaceutical firm also allotted a $265 million provision to manage potential additional settlement costs related to this litigation. Importantly, the settlement does not imply any admission of wrongdoing by Sandoz and addresses claims dating from 2009 to 2019. Additionally, Swiss electrification and automation leader ABB ($ABBN) has partnered with the World Green Building Council's European Regional Network to foster the development of sustainable, energy-efficient buildings in Europe.
Despite its efforts, the stock saw a slight decrease of 0.19% at closing..