On Tuesday, the Swiss market exhibited a weak opening and spent a significant portion of the day in negative territory. Although it briefly edged above the flat line in mid-afternoon, it ultimately dipped back and concluded the session with a moderate decline.
The market experienced a slightly bearish sentiment following U.S. President-elect Donald Trump's social media declaration that, upon assuming office in January 2025, he would immediately impose tariffs on all imports from Mexico, Canada, and China.
The Swiss Market Index (SMI) closed 45.71 points lower, marking a 0.39% decrease, settling at 11,632.88. Throughout the day, the index fluctuated, touching a low of 11,590.67 and a high of 11,690.90.
UBS Group saw a 2.1% decline, influenced by a Reuters report that its Chinese joint venture partner, Beijing State-owned Asset Management, is auctioning its 33% stake in UBS Securities for 1.5 billion yuan. This move potentially facilitates UBS's complete acquisition of the joint venture, where it already holds a 67% stake.
Schindler Ps and SIG Group both recorded losses, dropping around 2% and 1.9%, respectively. Holcim ended the session down by 1.51%, while significant decreases were also observed in Sika, Lindt & Sprüngli, VAT Group, Swisscom, ABB, Geberit, Roche Holding, Swiss Life Holding, and Sandoz Group, with losses ranging from 0.8% to 1.1%.
Additionally, Sonova, Adecco, Julius Baer, Givaudan, and Straumann Holding closed on a weaker note.
Conversely, Alcon surged by approximately 1.8%, Richemont advanced nearly 1%, and Lonza Group gained 0.84%.
Trump proposed a 25% tariff on all products from Mexico and Canada on his inauguration day, citing these countries as sources of illegal immigration and illicit drug movement into the U.S. "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!" Trump stated. Furthermore, he announced plans for an additional 10% tariff on Chinese goods, arguing that China has not sufficiently addressed the issue of "massive amounts of drugs, in particular Fentanyl, being sent into the United States."