Swiss stocks welcomed the new trading week in the red as markets prepared for a slew of business surveys across Europe and upcoming earnings releases. The Swiss Market Index experienced a decline of 0.53%, aligning with a broader retreat seen in European markets. Analysts from ING highlighted the importance of Thursday's release of PMIs across the Eurozone, noting its potential impact on the EUR/USD pair this week.
They stated that ECB President Lagarde surprised some by placing a heightened significance on the PMIs in the decision-making process of the European Central Bank. In Germany, government data revealed a 1.4% year-over-year drop in the producer price index for industrial products during September, a more substantial decline compared to the 0.8% decrease recorded in August.
The situation in the UK presented a different narrative, as the S&P Global UK Consumer Sentiment Index rose to 47.3 in October, marking the second-highest reading in over three years, up from 46 in September. This uplift is attributed to an increase in income from employment and diminished financial strain on households due to easing inflation rates.
Back in Switzerland, UBS Group made headlines by agreeing to sell Credit Suisse's 50% stake in Swisscard, a credit card company, to its joint venture partner, American Express. The financial terms of the deal remain undisclosed, yet UBS shares saw a decline of 1.55% at market close. Additionally, shares of Swiss biopharmaceutical company Relief Therapeutics surged 15.53% following news that it received a notice of allowance from the European Patent Office for its proprietary hypochlorous acid solutions, indicating further development for the firm.
Market watchers will be keenly observing the forthcoming economic indicators and earnings reports that could significantly influence stock performances in the coming days..