On Thursday, the Swiss stock market closed positively, mirroring gains in global markets following the Federal Reserve's decision to reduce interest rates by 50 basis points and its indication of potential further cuts in the coming months.
The SMI index increased by 76 points, or 0.63%, to close at 12,058.30. The session saw the index fluctuating within a narrow range, hitting a low of 12,034.39 and a high of 12,122.87.
Notable performers included VAT Group, Sika, and Partners Group, which rose by 3.32%, 3.14%, and 3.6%, respectively. SIG Group gained 2.79%, while Swatch Group saw an increase of 2.54%.
Other significant gainers were Swatch Group, Straumann Holding, Holcim, ABB, and Geberit, each advancing by 2 to 2.2%. Alcon, Julius Baer, UBS Group, Lonza Group, and Logitech International ended the day with gains between 1.2% and 1.8%. Swiss Life Holding edged up close to 1%.
Conversely, Swisscom, SGS, Kuehne + Nagel, and Sandoz Group closed with losses.
SECO, the State Secretariat for Economic Affairs, stated that the Swiss economy is expected to expand at a pace considerably below its average this year. Inflation is anticipated to ease further.
The Federal Government Expert Group on Business Cycles maintained its forecast for economic growth at 1.2% for the year. This rate remains below the average growth observed in 2023.
With gradual improvements in global economic conditions, SECO projected stronger economic growth next year, driven by exports and investments. GDP growth is anticipated to rise to 1.6% in 2025, slightly below the previous forecast of 1.7%.
The inflation outlook for 2024 has been revised down to 1.2% from 1.4%. For 2025, inflation is projected to decrease further to 0.7%, compared to June's forecast of 1.1%.
In August, Switzerland's foreign trade surplus declined to CHF 3.9 billion from CHF 4.1 billion in July, amid a continued drop in exports. Real-term exports fell by 0.2% over the month, a slower decline compared to the 1.5% decrease in July. Imports decreased by 0.8%, following a 0.4% decline in the previous month.