(AWP) The Swiss Stock Exchange tends to be more flat in early business on Wednesday. Traders are talking about a technical recovery after the previous day’s losses. It is said that some market participants are more likely to see the lower prices as a cheap purchase opportunity. But how strong the countermove is also depends on how long the subsequent purchases take. Because fear of inflation, which had led to the wider sell-off the previous day, has not dissipated.
Instead, the inflation outlook will likely continue to worry investors. So the economic figures are analyzed in detail. “The labor market in the United States plays a very important role in the deliberations of the US Federal Reserve,” said one trader. The polls conducted by the private employment agency ADP in the afternoon should provide a pre-glimpse of Friday’s official US job market report.
At around 9:15 AM, the SMI rose 0.67% to 11,044.53 points. The SLI index, which contains the 30 most important stocks, rose 0.76% to 1,793.72 points, and the general stock index rose 0.56% to 14,166.80 points. 28 of 30 the SLI value is increasing, only two are weaker.
The latter includes Alcon shares which are trading down 2.0%. The eye care company published its quarterly report the night before. ZKB wrote: “Although the key earnings numbers are above consensus, today’s results are somewhat disappointing in our opinion.”
On the other hand, AMS offers (+ 2.3%) the winners. The stock had already rallied against the generally weak trend the day before, after the sensor manufacturer delivered good numbers. In addition, the lower share price visually attracts speculative buyers after the recent sell-off, a trader said.
There is also demand for Logitech (+ 2.1%), periodicals such as ABB (+ 1.5%), Sika (+ 1.2%), Clariant (+ 1.4%), and Geberit (+ 1.5%), the latter benefiting from the follow-up. Purchases up to the quarterly results displayed the previous day, which were rated as good.
Financial stocks UBS, Julius Baer, Swiss Re and CS also began to rebound after the previous day’s sales, with price gains ranging between 1.6 and 1.3%.
In heavyweight, Roche increased by 0.5%. The pharmaceutical company has received European Union approval for Tecentriq as a treatment for lung cancer. Novartis earns 0.8% and Nestle 0.3%.
At the lower ranks, Landis + Gere (+ 2.5%) stands out positively. The energy management solution provider performed at the maximum analyst expectations with its sales and operating profits. Meanwhile, the net loss is higher than expected. However, the stock lost 3.5% the previous day.
Oil prices continue to rise
Oil prices continued to rise in early trading on Wednesday. In the morning, the price of a barrel of North Sea Brent (159 liters) was $ 69.47. That was 59 cents more than it had been on Tuesday. A barrel of US WTI crude rose 54 cents to $ 66.23.
Oil prices are currently at their highest level since mid-March. The crude oil market is benefiting from the rapid advancement of vaccination campaigns, particularly in the USA and Great Britain. Coupled with this is the hope of reducing Corona restrictions and increasing consumption of gasoline and diesel.
The balance is the very tense state of Corona in other large oil-consuming countries such as India or Brazil, and the daily high new infections weaken the mood in the oil market, as it is accompanied by a marked decrease in energy consumption. However, the OPEC + oil network wants to expand its production beginning in May.
Euro stabilizes above $ 1.20 – EUR / CHF is still below 1.10
The euro settled above $ 1.20 in early trading on Wednesday. In the morning, the shared coin costs $ 1.2017, roughly the same as the night before.
Against the Swiss Franc, the dollar is trading at 0.9133 Swiss Francs, slightly lower than the previous night. Meanwhile, the euro continues trading below the 1.10 level at 1.0977 Swiss francs.
Commerzbank does not believe that EUR / CHF will have to lose the area above 1.10. The current strength is unlikely to be a long-term development. Because the European environment looks very promising. From an economic point of view, Europe can finally breathe morning air again. Although the economic numbers from Switzerland were surprisingly positive, the interest rate hike by the Swiss National Bank is not being discussed seriously at the moment. “This means that global risk sentiment will remain the main driver of the EURCHF exchange rate for the time being,” says Commerzbank.
In the middle of the week, analysts and investors are looking at important economic data. PMIs are published for service providers in Europe and the USA. The company’s survey provides information about the situation in the sector hard hit by the Coronavirus pandemic. Additionally, some senior central bank officials have spoken.
United States of America
Technology stocks in particular came under pressure on US stock markets on Tuesday. The Dow Jones Industrial Average rose 0.1 percent to 34,133 points. The widest On the other hand, the S&P 500 lost 0.7% to 4,165 points. The heavy Nasdaq composite index also lost 1.9% to 13,634 points. US Treasury Secretary Janet Yellen has indicated that a “very modest rate hike” may be necessary to prevent the US economy from overheating.
However, defensive sectors such as finance, materials and energy expanded their price gains from Monday. Microsoft shares fell 1.6%, as did Google’s parent company Alphabet posted a 1.6% decrease in the share price. The Participation certificates from Apple shares fell 3.5% and Facebook 1.3%. The Leaves from Amazon decreased 2.2%. CVS Health gained 4.4%, first-quarter earnings were above analysts’ estimates and guidance for 2021 was lifted.
The Asia-Pacific exchanges will not find a clear trend on Wednesday either, while Japan, mainland China and South Korea will not trade due to public holidays. Record equity futures from Europe rose 0.7%, and over their US counterparts, by 0.1%. For US technology stocks, futures were also up 0.1%. It is up 0.5% on the Swiss SMI and 0.5% in the German Dax.
Hang Seng in Hong Kong is down 0.4%. On the other hand, the Australian S & P / ASX 200 Index added 0.5%.