Swiss stocks experienced a positive closing on Thursday, with investors gearing up for crucial economic data releases both locally and across Europe on Friday. The Swiss Market Index registered a rise of 0.57%, influenced by light trading volumes due to the US market being closed for a public holiday. In the euro area, the European Commission revealed that the economic sentiment indicator increased to 95.8 points in November, a slight improvement from 95.7 the previous month.
However, the final consumer confidence indicator dropped to -13.7 points, down from -12.5 points in October. "Following last week's declining PMIs, the European Commission's economic sentiment indicator (ESI) just brought a small positive surprise. ... Looking at the components, industry showed a small improvement, while sentiment in services and among consumers dropped," stated ING.
"Today's ESI should be taken with a pinch of salt as it wouldn't be the first time that sentiment indicators react with a delay to political events, like the US elections. At face value, however, it will comfort the ECB hawks to oppose a 50bp rate cut at the December meeting." Shifting focus to corporate developments, Stadler Rail ($SRAIL) saw a gain of 1.27% after securing a substantial order from the Swiss public transport company Regionalverkehr Bern-Solothurn for 20 new multiple-unit trains, expected to enter service between 2028 and 2030.
The total value of this contract stands at 190 million francs. Additionally, Berenberg began its coverage of Straumann Holding ($STMN) with a buy rating and a price target of 145 francs, praising the company's strong track record of earnings growth, excellent margins, and solid balance sheet. Analysts project that the Swiss dental products firm will approach 5 billion francs in revenue by 2030, leading to a closing stock increase of 0.44%..