Swiss stocks experienced a downturn on Thursday, with the Swiss Market Index registering a decline of 0.25%. This drop comes as investors digest new economic data and navigate new tariff threats from the United States. In a bold move, US President Donald Trump has threatened to impose a staggering 200% tariff on imports of wine, champagne, and other alcoholic beverages from Europe.
This action is a direct retaliation against the European Union’s plans to impose tariffs on American whiskey set to take effect in April. In related economic news, the monthly seasonally adjusted producer price index for final demand in the United States remained unchanged at zero for February, following a slightly revised 0.6% increase in January.
Meanwhile, across the Atlantic in the eurozone, January saw a month-over-month industrial production rise of 0.8%, rebounding from a revised 0.4% decline recorded the previous month, as per Eurostat data. However, when viewed on a year-over-year basis, industrial production showed no significant change, maintaining a static position. ING has commented on the data, stating, "While the numbers are volatile, they do suggest that industrial activity may be stabilising after a long decline that commenced in 2023." They went on to raise questions regarding the timeline for a true recovery, suggesting that a significant rebound in industrial production seems unlikely before 2025.
They believe that early investments may provide some relief, but the road to recovery will be gradual. Turning to the Swiss economy, the country's monthly producer and import price index noticed a slight increase of 0.3% in February, which is an improvement compared to the previous month’s growth of 0.1% and above the consensus expected increase of 0.2%.
On an annual basis, however, Swiss producer and import prices have dipped 0.1%, a contrast to January's 0.3% decline. In corporate updates, DocMorris reported a significant shift in its financial position, swinging to a net loss of 97.3 million francs for 2024, a stark contrast to the net income of 82.3 million francs recorded the year before.
Despite this loss, the net revenue for the Swiss online pharmacy rose to 1.02 billion francs from 969.5 million francs, a 5.3% increase. However, this news did not favor their stock, which plummeted by 28.69% by market close. In contrast, Interroll Holding showed robust performance, with shares increasing by 7.39% as a result of a promising outlook.
The materials handling company reported "clear indications that the downturn has bottomed out," and noted improvements in product sales for 2024, along with positive feedback from their clients. They claimed to have achieved "good" profitability margins against a backdrop of challenging economic conditions.
As the economy continues to face headwinds, the divergence in corporate performance highlights the ongoing volatility present in the market landscape..