Swiss equities faced a downturn on Tuesday, with the Swiss Market Index decreasing by 0.26%. Investors are evaluating recent economic data while also keeping a close watch on the upcoming US elections. In October, the KOF Business Situation Indicator for the Swiss private sector experienced an increase, rising to 11.5 from 10.7 in September.
This growth was chiefly propelled by the manufacturing and service sectors. Nevertheless, there was a noted decline in the business climate across various fields, including construction, project engineering, retail, financial and insurance services, as well as hospitality industries. The KOF stated, "Overall, this indicator has been trending more or less sideways—with minor fluctuations—since the spring.
The Swiss economy is not experiencing a stable recovery. Companies are generally slightly more cautious than they were in their expectations for business activity over the next six months." On the job market front, Switzerland's unemployment rate remained steady at 2.5% in October, the same as the previous month, based on government reports.
The number of employed individuals rose by 2.8%, totaling 116,447. In corporate developments, Swiss Re agreed to divest its iptiQ division's European property and casualty operations to Allianz Direct, continuing its strategy to exit iptiQ. This transaction is projected to finalize in the second or third quarter of 2025, with Swiss Re’s share price climbing by 1.59% following the announcement. Conversely, the Adecco Group saw a notable decline of 5.93% after revealing a year-over-year reduction in third-quarter net income, which dropped to 99 million euros from 103 million euros.
This decline was attributed to elevated interest expenses and additional costs during the reporting period, leading to a decrease in revenue from 5.96 billion euros to 5.70 billion euros..