On Tuesday, Swiss equities experienced a noticeable decline as investors processed recently released local economic data. The Swiss Market Index registered a decrease of 0.83%. Key economic indicators revealed that the annual inflation rate in Switzerland reached 1.1% in August, a slight reduction from July’s inflation rate of 1.3%.
This recent datum fell short of the consensus estimate of 1.2%. Monthly evaluations indicated that the consumer price index remained unchanged. Simultaneously, the country's gross domestic product (GDP) showed a growth of 0.7% in the second quarter, which is an improvement compared to the first quarter's 0.5% rise and surpassed the anticipated market expectations of 0.5%.
When accounting for adjustments due to the impact of sporting events, GDP growth was recorded at 0.5%, following a prior increase of 0.3% in the previous quarter. The State Secretariat for Economic Affairs commented on these findings, stating: 'This [GDP] result was slightly above average, driven by the robust expansion of the chemical and pharmaceutical industry.
However, growth across other sectors displayed mixed outcomes, reflecting a challenging domestic demand environment.' On the corporate front, Swiss Life Holdings ($SLHN) reported a positive outcome, with its insurance revenue for the first half of the year climbing to 4.54 billion francs from the previous 4.50 billion francs.
The insurer's fees witnessed a remarkable surge of 17%, reaching 395 million francs, while net profit also showed growth during this period. Consequently, the stock price appreciated by 1.10% at market close. In contrast, Partners Group (a) faced a significant downturn, witnessing a plunge of 9.20% after reporting an 8% year-over-year decline in profit, totaling 508 million francs in the first six months.
This drop was largely attributed to diminished performance fees. Additionally, the private equity firm experienced a 7% decrease in revenue, settling at 977 million francs..