Swiss stocks ended their trading day with minimal changes as investors assessed the latest US inflation stats alongside domestic earnings reports and trading updates. The Swiss Market Index saw a slight dip of 0.07% at the market's close on Wednesday. In the US, the annual inflation rate increased to 2.6% in October from September's 2.4%, aligning with market expectations.
The consumer price index demonstrated a monthly rise of 0.2% in October, matching the previous three months' growth, as reported by the Bureau of Labor Statistics. Jefferies commented, 'For the Fed, this data shouldn't move the needle. It is overwhelmingly likely that they will follow their recent cuts with another 25 bp cut at the meeting on December 17-18.
At that meeting, they will have an opportunity to update their forecasts with the benefit of certainty on election results and cleaner labor market data. So the outlook may shift significantly after the meeting, but we see no reason for a big change ahead of it.' In corporate developments, SoftwareOne, a prominent Swiss software and cloud technology firm, experienced a notable 7.68% jump in its shares after reaffirming its revenue growth forecast for 2024, projecting an increase between 2% and 5% in constant currency, buoyed by a rise in third-quarter group revenue.
Furthermore, the company anticipates ongoing positive revenue growth into 2025, with plans for double-digit growth by 2026, all in constant currency. In contrast, Alcon, a Swiss company specializing in eye care products, recorded a year-over-year surge of 6% in third-quarter net sales, reaching $2.43 billion, both on reported and constant currency bases.
Nevertheless, Alcon has adjusted its net sales and EPS projections downward for the full year 2024, now estimating between $9.8 billion and $9.9 billion in net sales, with core diluted EPS ranging from $3.00 to $3.05. The stock saw a mild increase of 0.10% at the close..