The Swiss Market Index concluded the trading week in the red, registering a decrease of 0.13% on Friday as investors dissected the latest labor market data and business survey releases. The unemployment rate in Switzerland has seen a slight uptick, moving from 2.4% in the previous month to 2.5% in September.
This increase is illustrated by government data, which shows that 1,891 more individuals registered as unemployed, bringing the total to 113,245 compared to the previous month. In contrast, the labor market across the Atlantic in the United States displayed signs of strength, with total nonfarm payroll employment jumping by 254,000 in September.
This figure surpassed not only the upwardly revised count of 159,000 for August but also the consensus estimates that projected an increase of 140,000. Accompanying this robust job creation, the unemployment rate fell to 4.1%, down from 4.2%. The strong job report from the United States has elicited varied reactions.
"The US jobs report was incredibly strong on every front possible - job creation, unemployment, wages and hours worked. Nonetheless, caution lingers given the lack of corroborating data," remarked analysts at ING. They highlighted that while the inflation backdrop is conducive for the Federal Reserve to adjust monetary policy towards neutral, future actions are expected to be in smaller increments of 25 basis points rather than the 50 basis points we observed in September. Back in Europe, the HCOB Eurozone Construction PMI displayed a slight improvement, rising to 42.9 in September, an increase from 41.4 in August, according to data provided by Hamburg Commercial Bank and S&P Global.
This figure suggests that total construction activity in the euro area continues to face challenges, heavily impacted by a significant decline in new orders. In the corporate landscape, shares of Berner Kantonalbank (BEKN.SW) experienced a boost, increasing by 0.88% following a reaffirmation of its Aa2 long-term deposit and A2 senior unsecured ratings by Moody's, which kept its outlook stable.
This action by the rating agency takes into account the bank's healthy capitalization and asset quality, among other positive metrics. Looking at acquisitions, Emmi, identified by the stock symbol $EMMN, finalized its 900 million-euro acquisition of the French pastry maker Mademoiselle Desserts Group.
This strategic move is expected to significantly enhance Emmi's presence in the premium desserts segment, potentially doubling its sales share. Notwithstanding this achievement, Emmi's stock saw a decline of 0.47% at market close..