Swiss equities wrapped up the trading week on a positive note, reflecting investor optimism as they digest recent business surveys across the eurozone along with newly released US inflation figures. The Swiss Market Index registered a modest gain of 0.20% on Friday, navigating through a day marked by limited local economic updates. In the United States, the annual PCE price index experienced a year-over-year increase of 2.2% in August, a slight decrease from the 2.5% rate observed in July.
Data released by the Bureau of Economic Analysis indicated that the core PCE inflation rate remained stable at 2.7% for August, consistent with consensus expectations and showing a small increment from 2.6% in July. Economists at ING noted, “The Federal Reserve's favored price measure is on the correct glidepath to achieving 2% annual inflation.
This development allows officials to pivot their focus towards growth and jobs dynamics. Despite income growth appearing lackluster and households registering a shift in the employment landscape, the anticipation for significant Fed policy easing continues to linger.” Meanwhile, in the eurozone, the Economic Sentiment Indicator marginally declined to 96.2 points in September from 96.5 points in August as reported by the European Commission.
However, consumer confidence saw a slight improvement, rising by 0.5 points to land at -12.9 points. This uptick illustrates a more optimistic outlook among consumers regarding their anticipated and past financial circumstances. Shifting focus to corporate developments, Adecco ($ADEN) witnessed a notable increase of 3.38% following Moody's reaffirmation of the Swiss recruitment company's Baa1 long-term issuer rating with a stable outlook.
This affirmation reflects Adecco's strong market position, commendable operational performance, and prudent financial structure. At Bernstein's London Strategic Decisions Conference, Roche ($ROG) CFO Alan Hippe underscored the company’s broad and diverse portfolio, which includes 16 blockbuster pharmaceuticals.
Roche is also poised to sustain its investment in research and development at a robust 14 billion francs annually for 2024, marking the highest expenditure in the healthcare industry. Bernstein analysts maintain an outperform rating on Roche's stock, setting a price target of 340 francs, with Roche's shares closing on a positive note, up by 0.59%..