Swiss equities experienced a notable increase on Wednesday, aligning with a regional upswing across Europe, as the Swiss Market Index concluded the session with a remarkable 0.93% gain. This surge in market sentiment can be attributed to Germany's report of a foreign trade balance surplus amounting to 22.5 billion euros in August.
This figure reflects a significant rise from the previously revised surplus of 16.9 billion euros recorded in July. The data highlights a 1.3% growth in exports, coupled with a 3.4% decline in imports month-over-month in August. In contrast, July had seen a 1.7% increase in exports along with a 5.3% rise in imports. Market analysts are currently adopting an optimistic outlook as they await the upcoming US inflation report for September, set to be released on Thursday.
According to Stifel, "Following a mixed report in July where the core CPI alongside the headline and core PPI surged more than anticipated, all attention will be focused on this week's figures. The September CPI is projected to increase by 0.1% and by 2.3% over the past year, potentially indicating a reduction from the 2.5% annual growth in August." In the realm of corporate news, Aevis Victoria announced its acquisition of PDS Medical, the operator behind the Centromedico healthcare brand in the Swiss canton of Ticino, through its Swiss Medical Network subsidiary.
The acquisition deal, for an undisclosed amount, signifies the establishment of a second integrated care region in Switzerland under the Rete Sant'Anna umbrella. On the other hand, Roche is set to amplify its production of diagnostic products and pharmaceuticals in China, aligning with its new "China for China" production strategy, which aims to cater to the increasing demand within the country.
This strategic move was reported by Bloomberg News, which cited Roche's Chief Executive Thomas Schinecker. At the end of the trading day, Roche's stock had increased by 0.87%..