On Tuesday, Swiss equities experienced a significant downturn as the market reacted to the latest earnings reports and emerging tariff threats from the United States. The Swiss Market Index concluded the trading session with a notable decline of 2.47%. This decline was largely influenced by comments from US President Donald Trump, who announced plans to double tariffs on steel and aluminum imports from Canada, raising them from 25% to 50%.
This decision comes as a response to Ontario's recent 25% tax increase on electricity exports to the US. In the broader economic landscape, the KOF Swiss Economic Institute provided a mixed picture through its global economic barometers released in March. The coincident barometer saw a decrease of 1.3 points, settling at 94 points, while the leading barometer showed a slight increase of 1.1 points, reaching 103.6 points.
KOF director Jan-Egbert Sturm noted, 'Although it is clearly too early to draw firm conclusions, the Global Barometers are beginning to reflect the economic impact of the policy changes now being implemented in the US.' He highlighted that the Western Hemisphere has been especially affected, as it is the only region showing a decline in both the coincident and leading global barometers.
Conversely, other regions appear to be experiencing a positive shift in their economic outlook. In corporate news from Switzerland, several prominent firms reported their financial results, including pharmaceutical and logistics group Galenica ($GALE), private equity powerhouse Partners Group ($PGHN), and electronic and optical connectivity specialist Huber+Suhner (HUBN.SW).
Notably, Huber+Suhner faced a 6.03% drop in shares, warning that they expect net sales in 2025 to remain stagnant compared to 2024 due to ongoing uncertainties in the market. However, for the year 2024, they reported an impressive 11.5% increase in net income, reaching 72.3 million francs, alongside a 5% rise in net sales to 893.9 million francs, propelled by an uptick in order intake.
Meanwhile, Partners Group exhibited robust growth in its total revenue for 2024, which rose to 2.14 billion francs, an increase from 1.95 billion francs the previous year. They attributed this growth to a remarkable 38% surge in performance fees, which amounted to 511 million francs, driven by 'several significant exits' from the group's private equity and infrastructure portfolios.
Their profit also climbed by 12% year-on-year, totaling 1.13 billion francs, although the stock saw a decline of 1.74% at market close. The complexities of the current economic climate underscore the interconnectedness of global markets and the nuances of corporate performance in response to evolving fiscal policies..