Swiss stocks welcomed the trading week in positive territory as markets get ready for the European Central Bank's much-anticipated monetary policy decision this week. The Swiss Market Index gained 0.86% on Monday's close. Analysts at Deutsche Bank expect the ECB to cut rates by 25 basis points again on 17 October, citing that growth is even weaker than the ECB's downwardly revised September forecasts.
Furthermore, inflation is returning to target sooner than previously forecasted, and there appears to be little opposition from the Governing Council to further easing in October for risk management purposes. They noted, "Cutting again in October will be significant. As the first back-to-back cut of the cycle, it would signal a pivot into a faster easing cycle." Back in Switzerland, government data showed a slight decline in the producer and import price index, which ticked down 0.1% in September, compared to a 0.2% rise in the previous month and market expectations of a 0.1% increase.
Additionally, Switzerland has restarted negotiations with the UK regarding an enhanced free trade deal, focusing on improving investment and services trade. In corporate news, Bossard (BOSN.SW) faced an 8.35% plunge after reporting a year-over-year drop in third-quarter group net sales to 240.4 million francs from 249.8 million francs.
The Swiss industrial fastening and assembly technology company also anticipates subdued sales in the fourth quarter. Meanwhile, HBM Healthcare Investments (HBMN.SW) saw a gain of 0.76% after announcing that its portfolio company, Upstream Bio, raised $255 million in its recent float on Nasdaq. HBM holds 2.7 million shares in the biotech company valued at $59.7 million..