The Swiss Market Index (SMI) commenced the trading week on a slightly positive note, ultimately closing with a modest increase of 0.07% on Monday. Market participants are keenly awaiting critical US inflation data that is set to be released in the upcoming days, pivotal information that could influence future monetary policy decisions. "We are experiencing a more tranquil beginning to this week in the financial markets, where equities are experiencing a stabilization and a decrease in volatility.
The market's focus will be directed toward US price metrics, specifically the Producer Price Index (PPI) and Consumer Price Index (CPI), coupled with activity indicators such as retail sales. There is a consensus expectation for a blend of data that could potentially facilitate a reduction in interest rates by the Federal Reserve in September," commented analysts at ING. In the context of the Swiss economy, local corporations are projecting an average nominal wage growth of 1.6% over the next twelve months.
This is accompanied by a modest increase in wages anticipated for 2025, as per the KOF Business Tendency Surveys conducted in July. However, when accounting for real wage growth, the forecast adjusts to a considerably lower figure of 0.6%, predicated on an assumption of a 1% inflation rate a year hence.
Notably, if companies' anticipations of an approximate 1.6% inflation rate materialize, the real wage growth is poised to experience a stagnation. In the realm of corporate developments, Partners Group ($PGHN) saw an increase of 0.93% amid speculation suggesting that the private equity titan is engaging with advisors to gauge investor interest for a possible public flotation of shares belonging to the German metering firm Techem.
According to reports from Bloomberg News, an initial public offering (IPO) in Frankfurt could occur as early as September, with an anticipated valuation exceeding 7 billion euros. Meanwhile, Sandoz ($SDZ) received approval from the US Food and Drug Administration (FDA) for its biosimilar Enzeevu, which has been designed for application as an intravitreal injection aimed at treating patients suffering from neovascular age-related macular degeneration.
Furthermore, the FDA has provisionally classified Enzeevu as interchangeable with the reference product, Eylea. Despite these advancements, shares of the pharmaceutical company observed a decrease of 0.14% at the end of the trading day..