Swiss equities experienced a downturn on Friday, with the Swiss Market Index closing 0.18% lower. This decline reflects a broader trend that has caught the attention of market watchers across Europe. In neighboring France, President Emmanuel Macron has appointed François Bayrou as the new prime minister, succeeding Michel Barnier, who resigned following a no-confidence vote. Looking at the euro area, industrial production remained unchanged month-over-month in October after a revised 1.5% drop in September, versus consensus predictions of a 0.1% decline.
Year-over-year, industrial production decreased by 1.2% in October. In the UK, the gross domestic product saw a 0.1% decline month-over-month in October, primarily driven by a reduction in production output as reported by government data. Analysts had anticipated a 0.1% growth in the economy. One analyst highlighted, "The data today poses downside risks to our Q4 growth estimate of 0.3%.
With sentiment weakening and reduced hiring intentions, this data could prompt a discussion at the Bank of England regarding downside risks to growth and the labor market next week." Despite these concerns, the analyst added, "It is too early to determine if the weakness will persist. We anticipate growth will rebound next year, fueled by fiscal easing, real wage growth, and the diminishing impact of rate hikes.
We believe they will maintain rates at 4.75% next week due to cautious guidance, fiscal easing, and ongoing inflation risks." In corporate developments, Swiss Re ($SREN) saw its shares rise by 4.50% after announcing ambitious financial targets for 2025, aiming for a net income exceeding $4.4 billion.
The reinsurance leader also elevated targets for its business divisions and plans to enhance its dividend per share by at least 7% per year over the following three years. On another note, the European Medicines Agency granted approval for Roche's ($ROG) Vabysmo 6-milligram prefilled syringe aimed at treating neovascular age-related macular degeneration, diabetic macular edema, and retinal vein occlusion.
This product is a significant advancement as it represents the first prefilled syringe in the European Union containing a bispecific antibody treatment for retinal diseases, although the stock fell by 0.90% at closing..