Swiss equities concluded the trading day in negative territory as investors digest fresh inflation and labor market data from the US. The Swiss Market Index edged down 0.37% at Thursday's close amid another quiet day of local economic news. In the United States, the annual inflation rate stood at 2.4% in September 2024, reaching its lowest point since February 2021, down from 2.5% in August but higher than consensus estimates of 2.3%.
The core inflation rate, meanwhile, ticked up to 3.3% from 3.2% in August. Additionally, US initial jobless claims rose to 258,000 in the week ending on October 5, an increase from 225,000 in the previous week. Analysts at ING commented, 'The battle between the US jobs numbers and the inflation data regarding the outlook for Fed policy remains unresolved.
As such, policymakers will need to tread carefully, but our base case remains 25 basis points rate cuts in November and December.' On the corporate front, Basilea Pharmaceutica gained 1.57% after announcing a fourth milestone payment worth $1.3 million from license partner Pfizer, following strong sales of its antifungal drug Cresemba in the Asia-Pacific region and China.
Meanwhile, Switzerland's Competition Commission concluded its investigation into Novartis over allegations of using a 'blocking patent' without consequences. The probe, initiated in September 2022, looked into whether the pharmaceutical giant unlawfully sought to protect one of its dermatological drugs by filing various patent infringement lawsuits, potentially limiting competition.
Subsequently, the stock was down 0.62% at closing..