Swiss stocks began the new trading week on a downturn as markets prepare for the highly anticipated US presidential election that will take place on Tuesday. The Swiss Market Index closed down 0.59% on Monday. Analysts at ING highlighted that trading in US presidential outcomes, particularly related to former President Trump, appears to be losing momentum, predicting that the next couple of days may exhibit unusual fluctuations in USD pairings due to anticipated volatility surrounding the closely contested election.
Another significant event scheduled this week is the Federal Reserve's rate announcement on Wednesday, which may coincide with the ongoing election results, potentially leading to a brief influence of the FOMC meeting on market dynamics. The Fed is expected to implement a 25 basis point reduction regardless of the election's outcome. In the eurozone, the final HCOB Eurozone Manufacturing PMI rose to a five-month high of 46 in October, slightly up from 45 in September, indicating a minor easing in the downturn experienced by the region's manufacturing sector, as reported by Hamburg Commercial Bank and S&P Global.
In Switzerland, residential property prices increased by 0.5% in the third quarter compared to the previous three-month period, showing price growth in both single-family homes and condominiums. On a year-over-year basis, the Swiss residential property price index saw a rise of 1.7%. On the corporate side, Relief Therapeutics ($RLF) experienced a share increase of 0.33% following the announcement of its intention to pursue a potential reverse merger with US-based biotechnology firm Renexxion, aiming to form a combined entity.
The proposed deal sets the value of the Swiss biopharmaceutical company's fully diluted equity at $100 million, while Renexxion's equity is valued at $260 million. In another development, electrification and automation company ABB ($ABBN) received a new order from DS Smith Paper Italia to deliver a sectional drives system for a new containerboard machine at its Lucca Paper Mill in Tuscany, Italy, which is expected to yield 450,000 metric tons of recycled liner grades annually.
ABB's stock closed down 0.31%..